
As I reflect upon my first anniversary as global CEO for AOL Platforms, I’ve gained a unique perspective on the industry after years on the agency side of the business (most recently as global CEO of Razorfish and CEO of Publicis Group’s digital technology division), to now being fully immersed in the technical innovations that are powering the rapidly evolving digital ad and publishing ecosystems. AOL has given me new insight into the many challenges and opportunities that marketers encounter when navigating the complex and crowded world of programmatic buying, data analytics, attribution, mobile, online video and more. Here are a few things I have learned in the last year — both the good and the bad:
1. The “tech tax” is no myth. The words “confusing” and “complex” are used to describe the current ad tech landscape for a reason. A multitude of highly specialized product vendors are all vying for a sliver of the marketing pie. Currently, for every dollar that a brand spends on a digital placement, more than half is siphoned off to a complicated web of trading desks, private exchanges, DSPs (demand-side platforms), SSPs (supply-side platforms), data aggregators, tag management vendors, ad verification vendors, retargeters and more. Having seen the waste inherent in our bloated publishing and advertising ecosystems first-hand, my take is that the industry’s No. 1 objective should be to unify and simplify the technologies that automate the planning, buying, execution, optimization and measurement of cross-screen and cross-format campaigns. The innovation exists. Our job is to harness it, simplify it and deploy it to increase the power and reach of every advertising dollar.
2. Inertia is stifling innovation. Things that worked in traditional media — like “splitting the buy” across broadcast networks and static one-month-ahead planning — don’t make sense in today’s data-driven digital world. Today the wealth of data and technology available make it possible to continually analyze behavior and performance data, empowering brands to zero in on the most relevant audiences and inventory in real-time, rather than hedge their bets. We wholeheartedly agree with WPP CEO Sir Martin Sorrell that data experts have an important role to play in this changing agency landscape: “You need to have programmers, engineers, scientists and mathematicians, and it needs different types of agency people working together.” Marketers and brand executives that don’t evolve from doing things “the way they’ve always been done” will be left behind. Those that adapt their strategies to the digital age will grow and thrive.
Continue reading at AdAge.com