Programmatic in Latin America: Matias Alpert of WPP’s Ogilvy & Mather -- The Jay Sears Interview

This is the second in a series of interviews with leading buyers titled amp8220Programmatic in Latin Americaamp8221 The conversation with continue at The Festival of Media Latin America in Miami Florida on Thursday October 2 2014 For more information please go hereYour Name Matamp237as AlpertYour Company Ogilvy ampamp MatherYour Title Chief Digital OfficerSEARS Where do you read your daily news ALPERT I read El Paamp237s The New York Times and La Naciamp243n through their sites and on Flipboard on a daily basis I have quite a few other sources on my Flipboard ie Folha ElMundo Washington Post FT etc As per industry specific news I follow emails for MediaPost and The Next Web on Twitter where I also follow influencers SEARS Today on average across Latin America out 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 ALPERT Leaving out search today we are already close to 005 in Brazil though well below in the rest of the region In Mexico Colombia and Argentina it is under 0015 and growing slowly The adoption curve is accelerating smoothly in Brazil though they still need a lot of education in the rest of the region A lot of confusion still persistsSEARS What was this number in 2012ALPERT 0015 on average for the whole regionSEARS What will this number be in 2016ALPERT 015 on average for the whole regionSEARS What is the mission statement of Ogilvy ampamp Matheramp8217s automated trading effortsALPERT The mission around our programmatic offering has to do with transparency marketing automation and effectiveness Bringing our search mentality to a larger part of our investment portfolio is a key initiative and programmatic is one of the spaces that allows for that The faster we can push adoption the higher value we can deliver to our clientsSEARS Please tell us SEARS Percentage increase managed budget media spend 2013 vs expected 2014 across Latin AmericaALPERT Digital Media is growing at 20 on averageSEARS How many employees are there in your Latin American organizationALPERT Total across Latin America 2500Total inBrazil 1200Mexico 300Argentina 450Chile 120Columbia 200Peru 85Uruguay 35SEARS By 2016 what percentage of your holding companyamp8217s Latin American media spend will be automated or programmatic ALPERT We should aim to be between 1525 As the flywheel starts turning more rapidly larger portions of the space should move to programmaticSEARS Across Latin America what markets are leaders What markets are laggardsALPERT Brazil This is most definitely the leading market both from an understanding and adoption basis Be that on the publisher advertiser or agency side all incumbents are pushing ahead hard on automationMexico Transparency and speed of adoption are big obstacles for this market to move forward Programmatic is still a line on a media plan like an adnetworkArgentina Understanding of the space is getting to a good level though availability of options given trade barriers government tariffs on the import of services slows the pace of adoption Chile Even though thereamp8217s sophistication the market is too small to focus key initiativesColumbia Great momentum right now which should mean the market will leap forward in some stages and other markets in the region Peru Investment in the space still too smallSEARS On the subject of business models the best way to describe your company isa Product organization amp8211 ie you curate a media product for your agencies and advertisers b Service organization amp8211 ie you recommend and manage best practices and best of breed products for your agencies and advertisersc Combination of bothd OtherALPERT We are a service organization and practices like programmatic are enabling us to change our business model to more performance oriented modelsSEARS What percentage of your agency or advertiseramp8217s site direct budget direct orders has been automateda Less than 10 of site direct dollarsb 1120c 2150d Over 50ALPERT It is still early days across the region so less than 10 We are laying the groundwork for this to accelerateSEARS Which of the following will accelerate the automation of site direct direct orders budget Pick all that applya Dynamic access to all publisher inventory vs just amp8220remnantamp8221 or amp8220auctionamp8221 b Ability to leverage publisher first party data c Ability to leverage advertiser first party data against all publisher inventory especially premiumd Availability of rich media expandable units and larger IAB Rising Star formatse Ability to more easily curate audiences for specific advertisers across the premium content of multiple publishersf Yes to all of the aboveALPERT I think a b and e are the key levers to turn the corner on programmatic in Latin America though I see us a lot closer to achieving a and b than e With the three available though we could much quicker take this to the next levelSEARS Tell us a bit more about youSEARS Who was one of your first mentors as a childALPERT My swimming then triathlon coach taught me I could accomplish anything with hard work and some inspirationSEARS Money is not a concern You no longer work in advertising or technology What would you choose to do for workALPERT Having started my career in banking I find advertising to be a lot of fun and highly social In digital you have the added benefit of continuously learning Iamp8217m looking to stay in advertising for the foreseeable future Canamp8217t think of a better place to beSEARS What is your favorite restaurant in the entire worldALPERT iK in Lima Peramp250 I look forward to meals in Peramp250 every time I go there Il Campanu in Cangas de Onis is a close second Tegui in Argentina was a recent positive surpriseThanks Matamp237asJay Sears is Senior Vice President Marketplace Development for the Rubicon Project Sears works with leadership and business unit heads across the company to expand Rubicon Projectamp8217s potential market Sears has also served as General Manager REVV Buyer where he was 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 at 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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Programmatic in Latin America: Matias Alpert of WPP’s Ogilvy & Mather -- The Jay Sears Interview

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