Technology and the digitalisation of media are changing the way that media agencies operate dramatically. And rightly so. Digitalisation has made a huge impact on media buying, with vast new distribution possibilities creating an exciting and complex landscape.
It's an entirely necessary evolution in line with the fragmentation of media consumption via smart, connected screens. Even as I sit to write this article a smartphone, iPad and laptop all vie for my attention.
There can be no doubt that programmatic processes such as RTB (real-time bidding) and the harnessing of big data (although I prefer 'smart' data) are going to help automate processes and improve efficiency, with dual benefits to clients and media owners in terms of delivering control, efficiency and ultimately effectiveness.
But, contrary to what Google might have us believe (and to be fair, one can't help but listen to the monolith that eMarketer estimates controls around one third of online ad spending and 50% of mobile ad revenue http://www.emarketer.com/Article/Google-Takes-Home-Half-of-Worldwide-Mobile-Internet-Ad-Revenues/1009966) all ad trading is not going to become programmatic.
I firmly believe that the human touch is still needed to decide what rules to set up and make meaningful analysis of data. Data is, after all, a virtuous circle of refinement. Big data only truly becomes smart data when insight and analysis is provided- on top of automation. The more data we generate, the more refined we can become, the more precise and effective our targeting (delivering ads to the right audience, at the right time, for the right price). The human perspective is needed to keep that circle going.
That's not to say that the role of the human in this programmatic context isn't evolving. What we're seeing now is media planners taking on a different role. Buyers used to delight in securing the best deals and getting the most bang for their clients' buck. Now, we are hiring data-literate people from diverse grad courses and diverse companies (rather than poaching from each other within media) – and actively seeking out people who find that same delight in data.
We can think of them as 'mathematicians'. They have a conceptual understanding of this new world, and they need to be open to learning continuously on the job – as we all do in our rapidly changing industry- but applying new sets of skills that many of us left behind at school.
But, there is still a role for brilliant planner-buyers who form relationships with media owners (where we still do and will absolutely continue to value the media brand and premium content) to negotiate the best possible placement and added value. This human touch breathes life and context into campaigns in a way that exchanges alone can't achieve.
So yes, programmatic processes present a more efficient and effective approach. This is 'the science bit', corresponding to the hard delivery of media. As WPP CEO Martin Sorrell neatly put it, we are now "math men not mad men" http://www.beet.tv/2013/04/wppsorrelll.html, and at Maxus we live and breathe this by using advanced technology to power efficient media buying.
In conversation with Google, they expressed a belief that 80% of ad buying will become programmatic? I think this is too high. I asked Microsoft CEO Steve Ballmer recently if he saw the industry going fully programmatic. He said five years ago he would have answered a definite no, but he sees it as a balance. I agree, and predict that the shift in the industry will be @ 60/40 programmatic/reserved media in the next two years.
But we can't go solely down that route. Advertising at its heart has to appeal both rationally and emotionally. We'll never be entirely automated as an industry - because humans aren't. We need to retain the softer side, the more discoverable, engaging and contextual elements of planning. I like to think of these as the magic ingredients in media, where human relationships will always be needed to keep people engaging meaningfully with brands.
Lindsay Pattison is CSO of Maxus Global and CEO of Maxus UK.
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