The biggest news in video advertising over the past week has been Interpublic Group of Cos. (IPG) teaming up with media companies, including AOL, A&E Networks, Clear Channel, Tribune Co., and Cablevision Systems Corp., to build and test an automated ad-buying system for TV and radio ads.
The activation of IPG data with an automated system, Adap.tv’s programmatic platform, empowers marketers with advanced tools to better understand and optimize value of their advertising investments across media environments, inclusive of TV, video, mobile and others.
We asked Kristi Argyilan, president of Magna Global’s North America business (a division of Interpublic), to give us a bit more context on what programmatic can do for marketers, and how the traditional definition of television is changing in new and exciting ways, both for those in the business of media and consumers:
There’s a lot of industry debate about what the definition of “programmatic” is. How do you define it?
We keep it simple: Programmatic is the use of technology and data to make faster, smarter buying decisions.
Reports mentioned that your recent news was an indication that Madison Avenue is shifting from “buying media” to “buying audiences.” What is the difference?
When we use the term “audiences”, we mean client-specific consumers. For example, people who buy Dodge Ram trucks, or who are Charles Schwab customers, etc.
Why is marrying technology and data so important in today’s increasingly fragmented world of screens?
We have really clear data now that allows us to invest much smarter. The only way to apply that data at scale is to use technology to insert the data at key steps along our planning, buying and measurement processes.
What does being able to buy programmatically mean for MAGNA GLOBAL’s clients in terms of unlocking value in their investments?
We can now more closely tie media investments to true business outcomes. As a result, how we define “value” as an industry is dramatically shifting. We no longer have to cling to media savings as the only true value we can deliver to our clients. When we apply the type of data that we have acquired to media buying decisions, we find we drive at least 25% greater effectiveness against more specific business metrics. That is a far greater value to our clients’ bottom line than any media savings derived from “beating the TV marketplace”. We owe it to our clients to be far more accountable, and we can now move beyond the softer metrics that have dominated our industry for decades.
Back to the programmatic part of the question, if programmatic is about applying data and technology to our decision-making process, then buying programmatically means we can now apply this science at scale, driving greater value across more clients’ campaigns.
Give us your best guess: What will ‘TV’ look like in 10 years?
From an ‘appliance’ perspective, today we are clearly seeing that younger adults have fully mediated their lives. The tablet or smartphone are the primary screens, and they use those screens to watch video, find a date, transfer money, etc. The big TV screen is in the background.
In 10 years, I expect ‘TV’ to be personal. How large the screen is is to be determined, but we will all have our own screen that is personalized to what we want to watch and do any time of the day. And as you can imagine, the content will run the full spectrum: live sports, high production programs/video and continued rapid expansion of individual-created video.