Michael Kahn of Publicis and Performics on TV and Ad Automation

TV and ad automation was discussed at the Dmexco conference in Cologne Germany in front of an audience of nearly one thousand people Pictured left to right Jay Sears Michael Kahn Rhys Namp246lke Senior Vice President Strategy of RTL Group Jamie West Deputy Managing Director of Sky Media and Michael Strober Executive Vice President Client Strategy and Ad Innovation and CoHead of Turner Ignite at Turner Broadcasting Follow the links aboveamp160to read Jay39s interviews with themJAY SEARS What do you read to keep up with politics art and cultureMICHAELamp160KAHN The Week The Economist Twitter Huffington PostSEARS What do you read to keep up with friendsKAHN Facebook Messenger feed WhatsApp feed LinkedInSEARS What do you read to keep up with the advertising technology and TV industries KAHN AP feed TechCrunchSEARS Whatamp8217s your favorite TV commercial of all time KAHN amp82201984amp8221 from AppleSEARS When you speak about TV ad automation how widely or narrowly do you define thisKAHN We define TV ad automation as Programmatic TV a combination of hardware and software that allows our clients more precise TV targeting via backend automationamp160TV DSPs like Videology AOLOne and Tube Mogul come immediately to mind But in truth true automation similar to digital is still a little while awayamp160 Inventory suppliers are truly wrestling with relinquishing control for the hopes of increased revenue per transactionamp160 When I think of true TV ad automation it should resemble current digital constructs including the ability to understand inventory costs associated data opportunity negotiation transaction and even traffic of creativeMost of the ad inventory related to TV automation is local cablebased and fairly limited however thereamp8217s a larger flow of inventory starting to flow for local broadcast from Wide Orbit etcamp160 Interestingly Wide Orbit is uploading inventory on TV buy platforms like Coreamp160 HH addressability inventory suppliers like DISH are also plugging their inventory to key DSP partnersThe future for TV is addressable or audienceconcentrated data solutions with stronger workflow automation to support transactions however TV inventory suppliers will need to see cost premiums for their inventory in order to want to automate and allow access to their inventoryamp160Currently most suppliers are flowing DRTV inventory to generate higher pricingSEARS With regards to advertising automation impacting TV what are the three biggest trends you expect to impact companies in 2016 and 2017KAHNVolume of supply will increaseAdvertisers will soon gain a better understanding of TV ad automation with agencies helping to educateamp160 Harnessing the power of data is a huge driver behind TV automation with the vast majority of platforms offering some sort of targeting enhancement that positions them as offering an advantage to the traditional TV buying approach that uses broadly defined age and gender demos which is appealing to brandsamp160 Tied to data is the importance of measurement particularly with an eye towards identifying not just the last touch outcome of a media engagement but a multitouch approach that tracks the impact of TV ad exposure across linear and digital devicesMore quality inventory will be made available in DSPsSEARS With regards to advertising automation impacting TV what are the most overblown topics that you wish would just go awayKAHN Many of the big networks have their own platforms which are walled gardens that house only their inventoryamp160 This is becoming overblown and weamp8217d love to see more inventory being made available in the DSPsSEARS Describe your company or division and then tell us the top three opportunities you are working on to advance TV automationKAHN As the largest DRTV buyer in the US weamp8217re working to create a better ROI for our clientsamp160 A big part of this is identifying new sources for efficient response volume and evaluating new methods to target and transactamp160 Weamp8217re focused on understanding the potential impact on response and delivery for new automated buy constructs including HH addressable and audience concentrated data solutionsamp160Is the juice worth the squeezeamp160 We have concerns that the increase in response and conversion rate to better target will not be enough to offset cost premiums for dataenabled TV inventory In digital cost is lowered commoditized but for TV suppliers are increasing ratesWeamp8217re testing different tech solutions to understand impact on databased planning outputs especially compared to agency toolkit including cable set top box and connected Wifi TV solutionsamp160 We are also testing different HH targeted and audience targeted platformsSEARS Tell us about your company or divisionKAHN As the original performance marketing agency Performics converts consumer intent into revenue for the world39s most admired brands Across a global network operating in 51 countries worldwide Performics creates connected and personalized digital experiences across paid owned and earned media RECMA recognized Performics as one of their Top Digital Agency Networks of 2014 Headquartered in Chicago Performics is a Publicis Media companySEARS The majority of ad technology and TV technology companies have struggled relatively small unprofitable or both Of the poor performers what are the commonalities between them that have contributed to this weaknessKAHN There are a few different elements at play First they donamp8217t owncontrol the inventory or the data to target or even differentiate themselves Second they have to better prepare RFPs that are customized and solutionfocused providing cost upsideamp160SEARS With respect to TV automation there seem to be three camps partnering with scaled digitalfirst automation companies that are now moving into TV partnering with startup amp8220TV firstamp8221 automation companies and companies that choose to build a solution themselves without a partner What do you see as the strength and weakness of each approach and what do you believe is the best mix for your companyKAHN We first have to examine the access to supply and data partnerships with each of the vendorsamp160 The idea of partnering with an existing digital partner is appealing to launch crossscreen programsamp160 Is the impression bid better for digital mobile or TVamp160 However itamp8217s too early for this dynamic for TV especially related to impression bidsamp160 A concern is the startup does not have the cash at hand to solidify unique marketplace position related to data and inventory although perhaps a greater upside potential for sleeker interfaceOur approach is to test and learn to truly uncover each of their strengths and weaknesses of each partneramp160 But access to supply and data overlays that is keySEARS Do we live in a amp8220tale of two citiesamp8221 where Google and Facebook win almost everything advertisers are dictated to and other media companies fight for the scraps Do you believe this is the case in digital or not And what do you expect the impact of Google and Facebook to be in TV KAHN Google had a fairly negative experience with TV a few years ago which may make them hesitate a bitamp160 For traditional TV I would be more on the lookout for Verizon They have potential for a full endtoend solution powered by their Fios and wireless data and inventoryamp160 They also have strong levels of content with AOLYahoo They also have Adapt AOLoneThat said Wifi enabled TV like DISHamp8217s Sling could cause Facebook or Google to have a go at it but not wiredline business like cableSEARS How can advertising automation help the strategy and planning functions directly or indirectly at an advertising agencyKAHN Using a broad definition of advertising automation that encompasses datafueled buying insights there are significant strategic and tactical insights that can be garnered to improve our buying approach and garner greater ROI for our clientsamp160 We have several clients who are harnessing the power of data through companies such as Comcast TiVo Nielsen Catalina Crossix and IMS to better inform their national buys and hone in on networks dayparts and programs that have a greater propensity to reach their specific target audience eg condition specific ailments for pharma advertisersSEARS Please answer the following statements yes or no KAHNamp160amp160amp160amp160Video above TV and ad automation was discussed at the Dmexco conference in Cologne Germany in front of an audience of nearly one thousand peopleSEARS If you had your own TV talk show what would you name itKAHN Twilight or Before Dawn a late night show for those who work all night long like those in advertising or media or technologySEARS A young family member has come to you seeking career advice They must choose one of the following careers ad agency executive media company executive ad technology executive or company marketing executive Which career path do you recommend and why KAHN Global executive across any one of those sectors with the right company with global being the operative wordSEARS What is your favorite restaurant in the world KAHN Miznon Paris or Vienna An Israeli restaurant serving the worldamp8217s freshest and most delicious Middle Eastern foodSEARS Thanks MichaelThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated bloggersamp160

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Michael Kahn of Publicis and Performics on TV and Ad Automation

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