IPG Mediabrands introduces Cadreon, a new programmatic buying unit for Latin America
What: IPG Mediabrands announced the launch of Cadreon, its programmatic buying capability in Latin America that will operate through a central hub in Chile.
Why it matters: This unit will service more than 10 markets in the region, where Real Time buying is expected to grow by 67% in 2014 reaching US $836mm.
IPG Mediabrands, the media innovation arm of Interpublic Group, has announced the launch of Cadreon, its programmatic buying capability in Latin America with a central hub in Chile servicing more than 10 markets in the region.
This launch is part of an expansion strategy of Cadreon’s programmatic buying service operating in more than 25 countries across the globe.
In Latin America, Cadreon counts on a team of specialist in Chile working with representatives in Argentina, Colombia, Central America, Ecuador, El Salvador, Peru, Uruguay, Mexico, Brazil and Miami where they offer pan-regional services. The Cadreon team in Latin America will bring a series of services to the region including: identifying audiences and creating customized marketplaces for each client to connect with their consumers across multiple platforms.
Cadreon is one of the core specialist capabilities offered under Mediabrands Audience Platform. Its’ specialized digital performance platform integrates technology, data and inventory to target audiences in real time. Operating as an independent media buyer, Cadreon will integrate inventory and data from multiple- domestic and international -demand side platform (DSP) partners, therefore maximizing the effectiveness and efficiency of digital communications across digital display, online video and mobile platforms.
Cadreon’s mission is to find the right audience at the right time and is mainly driven by its´proprietary technology Total Tag, which enables the data collection and deep audience insights that drives further optimization of campaigns. The integration of all the capabilities, when deployed and utilized appropriately enables significant performance improvements for clients.
Unlike many other agency trading desks, Cadreon does not purchase media inventory in advance and does not arbitrage media inventory,so that it can ensures that inventory is purchased in real time and clients enjoy the true efficiencies of real time bidding (RTB).
The future of Programmatic buying
The study : “The International State of Programmatic” carried out by MAGNA GLOBAL , forecasts that Real Time buying will grow by 67% in Latin America in 2014 (US $836mm) and global programmatic buying will reach a CAGR of 31% by 2017.
Brazil and Mexico were identified as the most advanced programmatic markets in the region.
The study also predicts that by 2017, RTB will have a market share reaching 25% of the total display spend in the region. However, it reveals that in the near future the overwhelming majority of non-premium inventory will be transacted through programmatic, primarily through RTB.
Marina Mendez, Regional Director of Mediabrands Audience Platform (MAP), said, “Cadreon, our RTB platform, allows us to find and create specific audiences in Latin American by using DSPs drivers and Big Data. We have invested in talent and resources to make Cadreon a solid network in the region and to ensure excellence in ROI.”
“With Cadreon we want to change the concept of media planning to ‘audience planning’, always adjusting the target in the purchases of display advertising for our clients to fulfill their communication objectives,” said Luis Contreras, Director of Cadreon in Latin America.