Agency Trading Desks: Automating Direct Orders? Questions & Answers with Michael Brunick of Magna Global - Jay Sears

This is the second of a fivepart series run by Jay Sears of the Rubicon Project at MediaBizBloggerscom leading up to a live session with the global heads of the agency trading desks at the New York Times Center on Thursday September 26 2013 at 11am during Advertising Week in New York Today we feature Sears39 second QampampA in the series this one with Interpublic and their MAGNA Global trading desk you can also read last week39s with Paul Dolan of XaxisYour Name Michael BrunickYour Company Magna GlobalYour Title SVP ProgrammaticWhat Flavor Ice Cream Best Describes Your Management Style Salted Caramel SEARS On averageamp8212out of each 100 spent on media all media not just digital by one of your advertisers how much today is spent on automated or programmatic channels BRUNICK 010 I think we are right at the bottom of the hockey stick and are about to see tremendous growth in the adoption of both Programmatic and automated investmentWhat was this number two years ago in 2011 005What will this number be two years from now in 2015 050SEARS Describe how most media all media digital nondigital nonprogrammatic media is bought and sold today BRUNICK The basic flow is ResearchPrePlanningamp224Planningamp224Buyingamp224Traffickingamp224Reportingamp224Optimizationamp224BillingReconciliation Toolstechnologies are used in virtually every step along the way but many of the tools don39t talk to each other or aren39t as connected as they could or should be There are still tons of opportunities to drive further automation within media workflowSEARS Tell us the about Magna Global BRUNICK Magna Global is the strategic media investment unit within Mediabrands We are focused on delivering optimal investment strategies for our clients and delivering bestinclass programmatic negotiation and datadriven solutions to our partner agenciesPLEASE TELL US amp183 Overall managed budget media spend for your trading desk expected 2013 GLOBALo BRUNICK We don39t disclose billings or revenueamp183 Percentage increase managed budget media spend 2012 vs expected 2013 Global only o BRUNICK 40 growth in the US 100 growth outside the US in 2013amp183 How many employees globallyo BRUNICK Worldwide 200SEARS What are Magna Global39s three biggest initiatives for the second half 2013 BRUNICK 1 Integration of ExchangeRTB and Programmatic Guaranteed 2 Evolution of our AMP data platform 3 Implementation of the Magna Media ConsortiumSEARS By 2015 what percentage of total media spend across your holding company will be programmatic BRUNICK Mediabrands is working towards 50 automation within three years amp8211 that means 50 of our billings will be executed via an automated workflow by the end of 2015 There are several components of overall automation amp8211 Programmatic is one of those components amp8211 and we are currently focused on maxing out Programmatic39s contribution to the overall automation agenda As we move through 2014 and 2015 several other initiatives will come online that will drive further automation SEARS To reach a higher adoption of direct deal automation and use of the programmatic channel what are the major impediments to overcome Rank these in numerical order BRUNICK1 Operational or workforce issues inside the holding companies or operating agencies4 Premium direct deal inventory availability via programmatic 3 Lack of proper ad technology NOTE STRIKETHROUGH 5 Alignment of agency compensation models2 Other Client ReadinessWe are talking about a fundamental change in the process by which work is executed in the media industry amp8211 that is change on the agencyside the sellside and the clientside All of those constituents are used to a certain amount of control or perceived control inherent in today39s process and getting all parties used to the dynamics of a marketdriven model does take time Also amp8211 the technology issue is not quotadtechquot amp8211 it is INDUSTRYtech Most of the systems used by each of those constituents were not designed to be flexible or adaptable so we either need to rethink our solution sets or our tech partners need to come along on this journey with us SEARS How are RFPs used between your operating agency clients and your trading desk What does a quotProgrammatic IOquot or a quotProgrammatic RFPquot look like BRUNICK In many cases we don39t operate via an RFP process with our operating agencies We are brought in very early in the process and incorporated into the overall strategy from the beginning This allows us to craft the best use of Programmatic for clients and maximize its contribution in the context of the agency39s overall strategy for that client SEARS What should top comScore publisher CROs do to build their direct order automation and programmatic selling with your trading desk and operating agencies BRUNICK We have set up our Magna Marketplace amp8211 and previously our Cadreon Marketplace amp8211 to do just that drive direct integrations with inventory and data partners to gain access to their valuable assets We have been doing this since 2008 and the launch of the Magna Consortium is the next step on that journey as we continue to gain access to new segments including nondigitaltraditional inventory and data SEARS Why is direct deal automation so important Is it important BRUNICK The integration of what we can buy via the exchange model in combination with what we can access via our most trusted partners amp8211 and again this is about both inventory AND data not just inventory amp8211 is a very powerful proposition Reduction of overlap better insight into audiences elimination of competitive bidding practices amp8211 these are all tactical manifestations of the real purpose better results for our clientsSEARS All of you work for global companies What global markets are the leaders and laggards in programmatic BRUNICKLeadersMediabrands G14 Australia UK BrazilMediabrands World Markets Chile Denmark and MalaysiaLaggards in regards to their potentialChina Germany ItalyMost of the Laggards listed are because they aren39t yet delivering against the potential we know they have available to them China and Germany are both experiencing tremendous success and growth but we know they could be so much biggerA lot of the challenges with many of the international markets stems from the lack of data sophistication amp8211 and not necessarily in 3rd party data but in the leveraging bringing 1st party or proprietary datasetsIt39s also worth noting that there appears to be an indirectcorrelation between the strength of publishers in a market and the adoption of RTB In other words where publishers are strongest amp8211 such as Germany amp8211 RTB has seen slower growth and the implementation of Private Marketplaces has been the key to success in ProgrammaticTell Us a bit more about youSEARS What39s your favorite part of Advertising Week in New YorkBRUNICK The excitement and energy about the industry and the dialogue about what39s next and what it will take to get thereSEARS If you could travel for pleasure anywhere in the world to a place you have never been where would you goBRUNICK Southeast Asia SEARS If you were trapped alone on a desert island and needed to choose one ad holding company CEO to accompany you other than your own holding company CEO which CEO would you pick and why BRUNICK Larry Ellison Oracle Make no mistake Oracle is in the marketing services industry and is coming at it from an inherently technologyenabled mindset That is what our industry needs to evolve and stay relevant And he39s got a pretty cool boatSEARS When is the last time you went out for a three martini lunchBRUNICK When was our last panelThanks For the fifth year at Advertising Week in New York Jay Sears of the Rubicon Project will assemble the agency trading desk leaders from each of the largest holding companies in the world for their annual checkin on Thursday September 26th at 11am on the main stage at The New York Times CenterWe39ll speak with Michael Brunick SVP Programmatic Magna Global Interpublic Paul Dolan SVP Global Business Development Xaxis WPP Josh Jacobs President Accuen Omnicom Adam Kasper Chief Media Officer Havas Media North America Affiperf Havas and Kurt Unkel President VivaKi AOD Publicis NEXT Adam KasperJay Sears is GM REVV Buyer for the Rubicon Project Sears is responsible for global relations with the buy side including ad holding companies ad agencies agency trading desks and demand side platforms headquartered in North America Jay can be reached at jsearsrubiconprojectcomCheck us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBloggerThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggerscom management or associated bloggers MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries

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Agency Trading Desks: Automating Direct Orders? Questions & Answers with Michael Brunick of Magna Global - Jay Sears

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