Q&A: Hakuhodo’s D.A.Consortium on Automation, Programmatic and TV

Pictured left to right Kei Iwashima Sales Manager Buyer Cloud Rubicon Project Jay Sears Kent Isshiki Strategic Planning Expert Global Business Group Hakuhodoamp8217s DAConsortium and Yoshihiko Miyaichi IT Project Manager Dentsu Digital Holdings Inc at the Rubicon Project Tokyo Marketplace SummitBe sure to read Sears39 interview with Yoshihiko Miyaichi of Dentsu Digital Holdings IncYour Name Kent IsshikiYour Company DAConsortium IncYour Title Strategic Planning Expert Global Business GroupSEARS What do you read to keep up with politics art and cultureISSHIKI Yahoo Japan news Hatena FeedlySEARS What do you read to keep up with friendsISSHIKI FacebookSEARS What do you read to keep up with our industryISSHIKI Facebook and FeedlySEARS Whatamp8217s your favorite commercial of all timeISSHIKI Bell39s Whisky The ReaderSEARS With regards to advertising automation and programmatic what are DACamp8217s three biggest initiatives in Japan in 2015ISSHIKI BalanceDataTechnologyOne of our initiatives is balance We handle premium and trading campaign and operation almost equally Only trading cannot be sufficient for branding sometimes Only premium cannot be sufficient for performance But sometimes premium performs better than trading in terms of reach or branding and sometimes even performance also Weamp8217re utilizing both with balance to achieve client KPI To achieve well weamp8217re enhancing our unique data and technologySEARS On average companywide across Japan out of each 100 spent on media all media not just digital by one of your advertisers how much today in 2015 is spent on automated or programmatic channelsISSHIKI Now digital media spent is around 15 of the total advertising market in Japan And 4050 of it is spent to programmatic channels So maybe I can say itamp8217s around 007SEARS What will this number be in 2017ISSHIKI 015 hopefully Need timeSEARS Tell us the about the Japanese operations of DACISSHIKI DAC is one of the largest digital ad agencies mediarep in Japan and was established by a consortium of leading ad agencies headed by Hakuhodo DAC delivers innovative services in the areas digital advertising planning consulting ad technology and operational support to Japanamp8217s leading online publishers and advertisersSEARS Please tell usSEARS Percentage increase managed budget media spend 2014 vs expected 2015ISSHIKI 20SEARS How many employees are there in your organizationISSHIKI As a DAC Group around 2000 in totalSEARS Draw an analogy between the automation of television and a baseball game Are we in the pregame Still driving to the stadiumISSHIKI In Japan I think itamp8217s in a stage that the baseball team owners are wondering whether they should open this game or not I think the situation and structure of the TV market is much different between the United States and Japan in terms of reach and efficiency content holder and broadcaster connection percentage and user generation Thus there might not be a serious reason for Japanese TV companies to do automatic or programmaticSEARS How can advertising automation help the strategy and planning functions directly or indirectly at an advertising agencyISSHIKI Automation can bring operational efficiency and people can spend more time on strategy and planning But one critical challenge for this is whether we can consolidate media buying and also data Realistically I believe itamp8217s same in the US though there are gigantic platforms such as Google Facebook Twitter Yahoo etc When we think of overall media buying we cannot forget or avoid these players If someone ignore these players the business cannot scale These players are providing some APIs though if you try to support all itamp8217s always really fragmented So unless this kind of critical consolidation and integration issue isnamp8217t solved the automation business cannot have real scale and businessSEARS Can linear TV be automated yes or noISSHIKI Technically yes anything can be automated But we have to consider the uniqueness of the Japanese TV market if we want to make it happen One stats says that the number of advertisers whoamp8217re running TVCF in the whole country is less than 500 Do you see a big opportunity for automation only for this number of advertisers Also there are around 100 local TV stations though basically theyamp8217re all under the key five group companies and each local station has only a limited number of local clientsSEARS Transparency on media costs on data on inventory has become a lightning rod issue Should transparency be a negotiated benefit for the advertiser client yes or noISSHIKI In Japan basically all media transactions are margin business even for trading type of business In this sense basically itamp8217s already transparent and it should beSEARS Which of the following will accelerate the automation of site direct direct orders budget Pick all that applyDynamic access to all publisher inventory vs just amp8220remnantamp8221 or amp8220auctionamp8221Ability to leverage publisher first party dataAbility to leverage advertiser first party data against all publisher inventory especially premiumAvailability of rich media expandable units and larger IAB Rising Star formatsAbility to more easily curate audiences for specific advertisers across the premium content of multiple publishersAll of the aboveISSHIKI F All of the above helps the adoption Without all of these it cannot be a real scalable businessSEARS If you could go to the airport right now with friends or family and fly anywhere in the world for vacation who would you take and where would you goISSHIKI Exuma Bahamas with my fiancamp233e Can you imagine Thereamp8217s a beach that you can swim with wild pigsSEARS If you could create an endowment to fund any existing nonprofit you designated what lucky nonprofit organization would that beISSHIKI A nonprofit organization for sick childrenSEARS What is your favorite restaurant in the worldISSHIKI Sharaku in Kamakura Japan Itamp8217s my favorite restaurant in the world and is located near my houseSEARS Thanks KentsanThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillageMyersBizNet management or associated bloggers

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Q&A: Hakuhodo’s D.A.Consortium on Automation, Programmatic and TV

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Q&A: Hakuhodo’s D.A.Consortium on Automation, Programmatic and TV

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