Your Name: Marc Lomas
Your Company: Cadreon
Your Title: Managing Director
SEARS: What do you read to keep up with politics, art and culture?
LOMAS: I am a big fan of Flipboard. It’s all about aggregation and efficiency.
SEARS: What do you read to keep up with friends?
LOMAS: Facebook, Instagram, LinkedIn
SEARS: What do you read to keep up with our industry?
SEARS: With regards to advertising automation and programmatic, what are Cadreon’s three biggest initiatives in Australia and New Zealand in 2015?
- Project IQ: Build a meta-DSP predictive model that will automate, improve and create efficiencies for DSP optimization. Moving beyond last touch and customizing specific intelligence for clients from attribution, audience, CRM and other datasets for influencing bid decisions through DSPs.
- Project Insight: Develop an insight engine that delivers best-in-class insight using a combination of programmatic and other third party platforms.
- IMPACT: Build out programmatic premium, direct and rich media offering.
SEARS: On average in the Australia and New Zealand markets -- out of each $1.00 spent on media (all media, not just digital) by one of your advertisers, how much today (in 2015) is spent on automated or programmatic channels?
LOMAS: On average around $0.10. Most clients are running 20-30% in digital. Automation is taking around a third to a half of all digital spend within our agencies. The numbers remains low whilst automation is still getting a foothold in guaranteed and traditional channels.
SEARS: What will this number be in 2017?
LOMAS: I expect this to grow to around $0.30 - $0.40, based on automation gaining near universal uptake in digital and the traditional channels embracing automation especially TV, Radio and DOH.
SEARS: Tell us the about the Australian and New Zealand operations of Cadreon:
LOMAS: Cadreon is IPG’s programmatic strategy and buying unit, serving as a specialized marketing services platform that fuses the latest technology, data, media partnerships and people to enable our clients to reach and engage with their target audiences at scale. We deliver highly efficient and optimized digital media, measurable value, dramatically improved performance and actionable insights.
SEARS: Please tell us:
SEARS: Percentage increase, managed budget (media spend) 2014 vs. expected 2015 for Australia and New Zealand:
- LOMAS: 35%
SEARS: How many employees are there in Australia and New Zealand?
- LOMAS: 33
SEARS: What countries/geo areas are you entering in 2015?
- LOMAS: Cadreon already has a strong global presence but in 2015 is looking to further expand into Russian and South Africa.
SEARS: Draw an analogy between the automation of television and an Australian rules football game. Are we in the pre-game? Still driving to the stadium?
LOMAS: The part when you just arrive at the stadium, are really excited, eager to get a beer and get involved but a little confused about where to go, so many people, so many gates, mates all pointing in different directions.
SEARS: How can advertising automation help the strategy and planning functions (directly or indirectly) at an advertising agency?
LOMAS: Besides the obvious benefits of solving the inefficiencies in the current model and adding this resource back into the strategy/planning layer. Automation will help strategy and planning become more targeted, more relevant, able to create micro-strategies that are responsive and adapt based on better, faster feedback and insight.
SEARS: Can linear TV be automated, yes or no?
LOMAS: Yes, it must to survive. I can’t see “broadcast” survive long into the future. Advertisers and consumers will come to expect right time, right place and right message communication. Everything else will be noise. Automation is an essential step in this journey.
SEARS: What two or three events or happenings will accelerate the automation of television?
- One: The changing consumer – increased consumption of IP enabled content.
- Two: Technology shifts – new tech such as a rapid uptake of new set top boxes, cable/fiber delivery, tech like SAT > IP making broadcast signals addressable.
- Three: Top advertisers demand it: Industry becomes less accepting of broadcast advertising and start to expect the reduced wastage, improved targeting and relevancy that automation brings.
SEARS: 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 no?
LOMAS: Yes, however negotiation is essential. It takes a lot of sophistication and dedication to understand and value all elements that make a successful trading operation, which is essential to a mutually beneficial relationship. Transparency will suit bigger players; others will prefer the simplicity of evaluating media on a cost vs outcomes basis.
SEARS: Which of the following will accelerate the automation of site direct (direct orders) budget? Pick all that apply:
- Dynamic access to all publisher inventory [vs. just “remnant” or “auction”]
- Ability to leverage publisher first party data
- Ability to leverage advertiser first party data [against all publisher inventory, especially premium]
- Availability of rich media, expandable units and larger IAB Rising Star formats
- Ability to more easily curate audiences for specific advertisers across the premium content of multiple publishers
- All of the above
LOMAS: F -- all of the above.
SEARS: 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 go?
LOMAS: My amazing fiancé and few close friends – we would all head out on an African Safari.
SEARS: If you could create an endowment to fund any existing non-profit you designated, what lucky non-profit organization would that be?
LOMAS: It would be a non-profit dedicated to solving world hunger.
SEARS: What is your favorite restaurant in the world?
LOMAS: I love all food, so this is a tough one. The most memorable for me has to be the Fat Duck in London.
SEARS: Thanks, Marc!
The opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of Media Village management or associated bloggers.