A few years back, around 2012/13 we discussed how we could grow Audience On Demand more quickly in the region. How could we support all those smaller markets that could not sustain headcount dedicated to programmatic and yet wanted to be part of the picture. Back then we set up the ‘Amsterdam Hub’ for AOD and the very talented Anke Kuik came in to run it for me. We quickly built a buzzy and vibrant business servicing 10+ markets and successfully growing the programmatic footprint of AOD.
As was widely reported, VivaKi eventually decentralised all these teams and so the hub was no more. Soon after that, I worked on global programmatic strategy across top clients and had the chance to see, hear and contribute to their progress. In almost all cases the advertisers were going back to basics and evaluating their tech, strategies, data plan and more, they wanted to set some common guidelines to many markets. As a result of many of these pieces of work we saw the re-emergence of the hub. Amsterdam is a particular favourite but I think it is fair to say you can find them all over, in London, Paris, US and so on, point being, the Hub is back.
However the big difference with the new hubs, either at a client or agency level are they are there to support ALL markets, big or small. They are there to support tech, data and media buying across a whole range of markets and with that you see a huge shift in how media is being traded, more so than ever before. The true potential of these hubs is becoming a reality, something that has been promised now for some years but is really taking shape and with that shifting the way we all do business. On my side having been a founder of a hub and now on the other side and working with them, it creates a fascinating dynamic as you have to work on many different levels. You need local expertise talking to local countries. You need local people talking to central hubs, you need International teams talking to the hubs. Wow, thats a lot of talking. It is all work and needs lots of coverage of teams, especially where hubs are at an advertiser level.
The thing is, these all take work to start with, but the benefits very quickly become apparent, as the rhythm settles in and people get used to the system, create a list of key partners, know where to go for certain inventory, on the sell side you start to see the benefits, especially where you have such strong, brand safe inventory as Spotify. Suddenly the much vaunted efficiencies of programmatic become apparent and we all start to benefit. Once the heavy lifting is done on the agency side or clients side and all their markets are adjusted to this new way of working then they can spend less time on execution and more on increasing sophistication of offering. Creating trusted market places of inventory, consolidating inventory decisions, partner selection, data strategy can all become the primary focus areas rather than the previously disjointed, inefficient work that happened five years back.
With every passing year this model is really starting to come together and I thoroughly enjoy seeing it, in some ways, even more from the Spotify side. I think we are going to see rapid acceleration (as if it can get faster) in programmatic. The clients and agencies are doing a great job of organising around this new world and I am excited to see how it progresses in the next five years!