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Sorrell On Programmatic In-House; Google Strikes Back

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In-House Grouse

The trend of marketers managing programmatic spend in-house is "a temporary phenomenon,” according to WPP Group CEO Martin Sorrell. In the wake of an AdExchanger Research report tracking momentum for self-sufficient media buying, Sorrell told WSJ, “Our view is after a year or two it will change. I question whether [clients] will be able to apply technology successfully.” AdExchanger Director of Research Joanna O'Connell sees it differently: “Marketers’ hands are being forced because of the way holding companies and agencies are behaving.” Read it.


Carat’s Anthony Rhind Wants A Transparency Pact With Publishers


Anthony Rhind, global chief digital officer at global media agency Carat, describes programmatic as "an emerging operating system" for marketing effectiveness. It's about much more than any one tool, such as RTB, or any one channel, such as display.

"To me the opportunity is 'programmatic management,' which means programmatic management of inventory opportunities, whether they’re fixed price or not," he told AdExchanger at this week's Programmatic I/O conference.

"It’s about understanding the value and maximizing the efficiency through programmatic channels, and then also using the real-time component for creative and design optimization and using that across programmatic bought inventory and nonprogrammatic bought inventory."

AdExchanger caught up with him at the conference.

How is Carat Global executing programmatic management?

ANTHONY RHIND: It’s important to ensure that programmatic is addressed from a strategic planning perspective, rather than a buying optimization perspective. As an agency, we talk about convergence a lot and understanding that consumers are living their lives across multiple devices. They live in both a brick and a click world, and we have to plan for that. The data that can be amassed into DMPs is a really powerful planning tool, as well as an automated, algorithm-feeding, trading-intelligence engine.


Facebook's Ad Spend Attraction; Alibaba IPO Eve

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Facebook, Money Magnet

Facebook now attracts a greater percentage of ad spend than it does attention minutes, according to an eMarketer report. Nearly 10% of US digital ad spend in the US goes to Facebook, but the company only draws 7% of adult time spent on digital media. “While the cost of Google ads has dropped, Facebook ad prices continue to rise,” writes The Wall Street Journal’s Reed Albergotti. “How long advertisers’ exuberance for Facebook will last – whether it can turn into a permanent fixture in the digital advertising landscape like Google – is the question.” Read on.


Dentsu Buys Covario; Programmatic Models

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Dentsu Buys Covario

Dentsu Aegis Network has acquired search and content marketing agency Covario. Convario's Rio SEO software offers tools for local and enterprise search, social media automation and analytics. “As points of engagement and transaction come closer together, it is crucial for our clients to have a dominant position in all key areas of the consumer journey,” said Dentsu CEO Nigel Morris. Convergence, ftw. Press release.


Apple's Data Perspective; Meager TV Ad Spend Growth

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Does Apple Care?

CEO Tim Cook draws a hard line between Apple’s mission and other companies that plumb for data. In a TV interview with Charlie Rose, he said, “Our business is not based on having information about you. You’re not our product. Our products are these, and this watch, and Macs and so forth. And so we run a very different company.” Insert frowny face for any marketer hoping to leverage Apple Pay transaction data for attribution modeling. Read more via Re/code and watch the clip.


Chasing Marketing Tech; Selling Weather

oracleroundupVoice From The Cloud

Oracle CEO Larry Ellison speaks publicly about the marketing tech opportunity his company is chasing with the rat-a-tat acquisitions of Eloqua, Vitrue, Responsys and BlueKai. Speaking to Ad Age, Ellison says, “The CMO's role is going to be more important next year than it is this year, and more important the year after that." Read it.


Getting Categorical About Video Ad Buys

dlVideo inventory ad spend is skyrocketing at an astonishing rate, rising 1,500% from Q4 2013 to Q2 2014, according to TubeMogul's quarterly update, released late last week. This year alone, video ad impressions purchased programmatically have increased 140%.

"The rise in programmatic adoption can be attributed to advertisers increasingly leveraging the abundance of data across digital channels," the report stated, "as well as publishers realizing increased revenues and efficiency from automated mediums."

AdExchanger asked a handful of video chiefs to explain how they categorize video ad buying.

Click below to read their responses:


Facebook Ad Delivery; Trading Desk Defense

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Facebook Mechanics

A BuzzFeed story looks at the thinking behind Facebook’s ad delivery. The company uses targeting data, including its own interest data, “to quickly whittle away the number of ads that are relevant to a specific user to between 5,000 and 7,000 ads. At this point, the job is only around halfway done.” The ultimate decision rests on a combination of factors, including ad quality and, of course, bid price. “Higher quality ads — whether that’s good video, high-fidelity photos, or ads that attract a lot of likes and comments — cost less to be ranked higher in News Feed.” More.


WPP Agency Maxus Names Jonathan Adams Chief Digital Officer

maxusOn Thursday, WPP-owned media agency Maxus named former iCrossing executive Jonathan Adams as its chief digital officer. After previous stints at OgilvyOne and The Media Edge (since rebranded MEC), Adams is returning to WPP.

The appointment is Maxus North America CEO Steve Williams' first hire since he began in June. Williams spoke to AdExchanger about Adams’ new role, the state of digital and the agency’s strategic horizons.

ADEXCHANGER: What will Adams’ key responsibilities be at Maxus?

STEVE WILLIAMS: The key responsibility for Jonathan will be about working very closely with me and a couple other critical team members to ensure that the quality of our work is the best it can be. More specifically, given his role as digital officer, he’ll ensure that Maxus in North America is as fluent and agile around digital channels as we possibly can be.

What’s your vision for digital at Maxus?

I have a vision for the industry not having the conversation about digital. The reason agencies, and media agencies in particular, need deep expertise with first-class practitioners like Jonathan is because the world is changing so quickly. It’s important to keep up to speed. I am hopeful that with the team we’re pulling together now, and Jonathan being a key part of that, we can introduce a horizontal approach to media, platforms and technologies, and how data flows between them.

That means that the word digital becomes redundant. Because, at the end of the day, what isn’t digital? I’m looking for us to become as competent as possible working horizontally, because that’s how ideas travel. We’ve got to be experts at working vertically as well, because flawless execution is crucial.


Yandex Buys ADFOX; Trading Desk Transparency

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Yandex Buys Ad Tech

Russian Internet giant Yandex acquired ADFOX, a company that provides planning, managerial and analytics services for in-banner, mobile and video internet ad campaigns. In June, ADFOX’s chief development officer, Boris Omelnitskiy, told AdExchanger, “We work mostly on the sell side and many of the independent publishing players in Russia are among our clients, because Yandex, and Google all have their own ad technology.” Read the press release.