Cannes Conversations: Brian Lesser of WPP’s Xaxis

The “Cannes Conversations” will continue at two events at Cannes Lions Festival hosted by Rubicon Project: the 2nd Annual Agency Trading Desk Panel on Le Rooftop on Tuesday, June 17, 2014 at 6:00-10:00pm and the 1st Annual Publisher Automation Panel on the Rubicon Project Yacht (the Antisan) Wednesday, June 18, 2014 at 6:00-10:00pm. Guests must RSVP here.

Your Name: Brian Lesser

Your Company: Xaxis

Your Title: Global CEO

SEARS: What’s your favorite candy bar?

LESSER: KIND Bars

SEARS: Today on average globally -- 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?

LESSER: Xaxis is a programmatic media platform. 100% of our advertisers’ spend is programmatic. At the holding company level, probably about $0.10 to $0.15 if you include search marketing.

SEARS: What was this number in 2012?

LESSER: Lower

SEARS: What will this number be in 2016?

LESSER: Higher

SEARS: Will a shift in agency compensation from percentage of spend and FTE models to pay-for-performance (aligning business outcomes with the advertiser) accelerate advertising automation, yes or no?

LESSER: Yes. We are paid for our performance on 100% of campaigns. That doesn’t mean we sell on a CPA or CPC, but if we don’t perform, we don’t renew the client.

SEARS: What is the mission statement of Xaxis?

LESSER: Xaxis is the world’s largest programmatic media and technology platform. We use data and technology to help advertisers reach and engage with audiences at scale.

SEARS: Please tell us:

SEARS: Overall global managed budget (media spend) for your trading desk, expected in 2014:
LESSER:Xaxis will manage over $750 million in spend this year.
SEARS: How many employees are there in your global organization?
LESSER:About 750
SEARS: What countries have you entered/will you be entering in 2014?
LESSER:We founded the company in 2011 in 11 markets. By end of 2013 we were in 32 markets. By end of this year we will exceed 40 markets. WPP is in about 110, so we still have a long way to go.

SEARS: What are Xaxis’ three biggest global initiatives in 2014?

LESSER:
1. New products in new channels, organically and via acquisition
2. Innovation in data and technology, including the launch of our latest DMP
3. New ways to engage clients

SEARS: What is your trading desk doing to encourage media owners to more aggressively adopt direct order automation?

LESSER: Our inventory is 100% automated and 62% of our inventory is purchased on a forward commitment. We encourage our media partners to pre-negotiate rates with Xaxis by making these commitments.

SEARS: What is your trading desk doing to encourage advertisers to more aggressively adopt direct order automation?

LESSER: Xaxis is not a trading desk. Our agency partners are working very hard at this objective. When Xaxis works directly with advertisers 100% of our activity is automated.

SEARS: What is your guess? What percentage of CROs at top comScore publishers compensate their sellers equally for media that is hand-sold vs. sold via an automated channel (either orders or auction)?

LESSER: An increasing percentage but still likely small.

SEARS: What countries globally are the leaders and laggards in programmatic?

LESSER: US and UK are the leaders. Canada, the Netherlands, Denmark, France, Spain, and Italy are also well established. We see great progress in APAC and Latam.

Tell us a bit more about you:

SEARS: Who was one of your first mentors as a child?

LESSER: My father ran advertising agencies. He was and still is one of my greatest mentors.

SEARS: Money is not a concern. You no longer work in advertising or technology. What would you choose to do for work?

LESSER: I would help charities and other organizations short on marketing resources take advantage of our amazing industry so they could better connect with supporters.

SEARS: What is your favorite restaurant in the world?

LESSER: My best meals are enjoyed with my family at home.

Thanks Brian!