As part of a five-part series 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, Jay Sears of the Rubicon Project will be running Questions & Answers with each holding company.We'll be running a series of Q&As conducted by yours truly with each of the trading desk leads right here at MediaBizBloggers.com between now and September 26th, so buckle up as there are lots of exciting opportunities to outline for both sellers and buyers.Today we start with WPP and their Xaxis trading desk:Your Name: Paul J. DolanYour Company: XaxisYour Title: SVP, Global Business DevelopmentWhat Flavor Ice Cream Best Describes Your Management Style: Ben and Jerry's "Chubby Hubby" because my management style is like a roly-poly father figure of Xaxis. SEARS: On average—out of each $1.00 spent on media (all media, not just digital) by one of your advertisers, how much today is spent on automated or programmatic channels? DOLAN: $0.03What was this number two years ago, in 2011? $0.01What will this number be two years from now, in 2015? $0.07DOLAN: Search continues to lead the way for programmatic media buying. Online display and online video are quickly growing in the automated/programmatic space. TV, Print, Radio and Outdoor are still in early days of automation.SEARS: Describe how most media (all media, digital + non-digital, non-programmatic media) is bought and sold today. DOLAN: Media agencies start by developing a client strategy. Overall goals, KPIs, target audiences are identified. From there, robust data sets and sophisticated algorithms are employed to determine which media channels to us and at what investment levels. Then media briefs, RFPs and media plans are produced. The media agency activates the programs with ongoing optimization and closed-loop measurement.SEARS: Tell us about Xaxis:DOLAN: Xaxis uses data and technology to help advertisers reach and engage with audiences at scale. We do this for global advertisers in 28 offices servicing 26 markets.PLEASE TELL US: · Overall managed budget (media spend) for your trading desk, expected 2013 (global): DOLAN: no answer· Percentage increase, managed budget (media spend) 2012 vs. expected 2013 (global): DOLAN: 57% increaseo How many employees globally? DOLAN: Worldwide 300 SEARS: What are Xaxis' three biggest initiatives for the second half, 2013? DOLAN:1.) Xaxis TV – Online video planned, targeted, executed, and measured just like TV.2.) Continued geographic expansion. Global advertisers want integrated global audience buying solutions3.) New releases of proprietary audience products like Xaxis Radio and Xaxis Places SEARS: By 2015, what percentage of total media spend in across your holding company will be programmatic? DOLAN: We project 7% of total media spend will be programmatic by 2015. There will be geographic variance here. We project that some growth markets will move to programmatic faster than long-established markets. 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: DOLAN:_5__ Operational or workforce issues inside the holding companies or operating agencies_2__ Premium (direct deal) inventory availability via programmatic_5__ Lack of proper ad technology_5__ Alignment of agency compensation models_1__ Other: Alignment of Publisher Sales TeamsThe biggest hurdle to automation of the digital display space is the publisher aligning their sales channels to move more towards programmatic engagements. By and large, agencies have built the operations and compensation models to introduce more automation to clients' lives. SEARS: How are RFPs used between your operating agency clients and your trading desk? What does a "Programmatic IO" or a "Programmatic RFP" look like? DOLAN: Xaxis is embedded within the strategic planning groups at our agencies, bringing audience buying data and technology capabilities to the client at the earliest stages of planning. SEARS: What should top comScore publisher CROs do to build their direct order automation and programmatic selling with your trading desk and operating agencies? The 80% of standard packages that publishers sell should look to be transacted programmatically. This will free up strategy and sales resources at the publisher to focus on those high-impact content integrations which are still critical yet more difficult to automate. SEARS: Why is direct deal automation so important? Is it important? DOLAN: Agencies should facilitate the automated programmatic connection between advertisers and publishers. This is now a core required expertise of the media agency. Automation of standard tasks means more time can be spent on strategic work at the publisher, agency and advertiser.SEARS: All of you work for global companies. What global markets are the leaders and laggards in programmatic? DOLAN: Leaders in programmatic include the UK (leader in programmatic video), Germany, Netherlands, Australia. Still with work to do includes the US, China, Brazil, Japan, RussiaTell Us a bit more about you:SEARS: What's your favorite part of Advertising Week in New York?DOLAN: I enjoy the quiet nights followed by early morning meetings. SEARS: If you could travel for pleasure anywhere in the world, to a place you have never been, where would you go?DOLAN: I'm ready to start up Xaxis Fiji 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? DOLAN: (no answer)SEARS: When is the last time you went out for a three martini lunch?DOLAN: Never. First will be directly following this panel discussion [during Advertising Week]. Thanks Paul! 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 check-in on Thursday, September 26th at 11am on the main stage at The New York Times Center.We'll 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 -- Michael BrunickJay 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 jsears@rubiconproject.com.Check us out on Facebook at MediaBizBloggers.comFollow 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 MediaBizBloggers.com management or associated bloggers. MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries.
