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Real-time marketing and Big Data have opened big opportunities for marketers when it comes to hyper-targeting their prospects. This is particularly true of the heavily-digitized travel marketing sector (example: Best Western CMO Dorothy Dowling recently told us 88% of Best Western’s hotel bookings are done online). Sojern, a performance marketing platform for travel brands, has specialized in delivering that particular message that each unique user is looking for before traveling. We asked Andrés Franklin, commercial director for Latin America at Sojern, to spell it all out for us.

Travel is complicated. And people, when they travel, behave differently than they usually do. To any advertiser trying to connect a product or service with targeted audiences, a traveler is different than any other target.

Andrés Franklin, commercial director for Latin America at andre franklinSojern, says it best: “Travel is unique because I am equally as likely to buy a shirt today as next week: all it takes is a bit of tomato sauce, and there you go. While many of us are travelers, we are not in the market to purchase travel at all times.” It’s not enough for a five-star hotel chain or luxury cruise line to simply target people who travel. What’s the point in investing money in a campaign, only to reach backpackers that can’t afford your hotel rooms? “I don’t want to speak to the five-star hotel’s target audience the same way I do to people traveling by discount fares and trains,” Franklin adds. But it’s easier said than done.

Sojern is a platform that helps advertisers connect with travelers in more meaningful and engaging ways through connecting frequent travelers with branding efforts when they are likely to buy. Let’s assume the client is a large hotel in Cancun. The company’s job is to connect its client, let’s say a hotel in Cancun, with the people that have just bought tickets to Cancun, and are traveling in seven days, since 70-90% of bookings occur within two weeks of buying a ticket.
Latin America has very fragmented hotel markets.

To Franklin, it’s all about finding ways to provide very tailored and ROI-effective solutions for advertisers in the tourism industry. “Hotels want to be right there with a compelling message that is relevant to that traveler, for his or her particular destination, with an offer for specific dates or seasons,” Franklin says. “So we have data partnerships with data suppliers like airlines and OTAs, and are using a programmatic, data-driven media buying platform for the traveler these clients want to target.  We can buy media that is highly targeted and deliver very customized messages to individual users.”

CHECK OUT: 6 Things you Need to Know About Best Western’s Approach to Marketing
Social Advertising according to Volaris CMO Ricardo Rivera

Partnership with Travelclick

16844832212_3f37b0babc_z (1)Sojern just partnered with TravelClick to share targeting and data-driven advertising resources and offer an extensive and complete media solution. Of the partnership with Travelclick, a global provider of data, ecommerce and internet solutions to the hospitality industry, Franklin says: “What we are trying to accomplish is marry those two things. What’s in it for both is ability to impact more properties and bringing this sophisticated media solution to hundreds of properties across Latin America, the Americas and the world.”

As the commercial director for Latin America, Franklin tracks the specificities of this unique region. Naming a few of its particular features, he says that comparing Brazil and Mexico illustrates the difficulty associated with reaching fragmented hotel markets. In Mexico, for example, the top 10 hotel chains have an average of 30 properties in the country. Intercontinental has over 100. But in Brazil, the first two or three on the list of biggest hotel chains have between 50 to 100 properties but and the 4th largest may have five. Argentina, Chile and many other countries in Latin America are similar in that respect.

These smaller hotels can see impressive ROI, but only through reduced marketing and distribution costs. Markets like this, that demonstrate so much longtail, are challenging, as it typically takes “a lot more time to get to the same volume of people.” Having aggregated its technology, Sojern is particularly useful in facing this industry challenge.

Flexible Models

But Sojern has been sure to develop tools for all types of campaigns and clients: “The way we’ve built our business is to have highly-flexible commercial models where we can work in a number of different ways with advertising. When it comes to the competition we are all going after the same pool of money, and so where there’s a marketing or distribution budget, thats all the budget there is,” Franklin says.
5819756791_89b1c4f580_z (1)Speaking of clients, do clients in Latin America (or anywhere) undstand the complicated technology that is now implemented in programmatic buying? “Entering certain parts of the world has been a challenge,” Franklin admits, and he joined Sojern two years ago, when there were no programmatic, data-driven models for determing the best potential target out of a thousand people – and what message will work best. Franklin explains: “That first year was a lot of education. But two years down the road it’s a different story: Rarely do I speak to clients that don’t understand the value proposition we offer.”
So what should Sojern expect from this rapidly-changing industry? Franklin believes that:
1) The availability of inventory will increase – “So many companies like Clarin and Televisa are still selling good chunk of their inventory the old- fashioned way, with a salesperson that makes the rounds and knocks on doors. Theyre protecting an asset because they feel that once they make their inventory available to ad exchanges, they lose control over what people will be willing to pay for it. So theyre spending money  to create premium content, but theyre only charging what the market would pay for any ad. But publishers will realize that through the lower cost associated with selling through programmatic buying, they will sell media for less but make a better margin.”
 2) The adoption and understanding of programmatic buying will expand. “There’s still a lot of first-level understanding of programmatic and data-driven advertising, but not enough to differentiate in terms of why one platform could do it better than another. So I still have conversations. There will be advertisers that dig deeper and do own research, but the trend is that initially they will hear out what the agency has to say, it will sound awesome, and that’s their first foray into programmatic.”
Ambitious and creative minds in advertising have a fascinating year ahead of them in 2016, and no shortage of tools to develop new solutions for publishers.

Join us at PORTADA Mexico!

Content marketing, mobile marketing, multi-screen and programmatic buying were the biggest highlights of 2015. Here, we share the reflections of Denisse Guerra, Diego Reck, Martín Frontini, Eugenia Denari, Jeremy Piotraut, John Mafoutsis, Martin Jones, Carlos Espindola and Borja Beneyto.

Content Marketing: Integration with Social

According to Denisse Guerra, Regional Marketing Director for Latin America at The Estée Lauder Companies Inc., “banners are a thing of the past, and now brands are looking for ways to engage, which makes much more sense in today’s consumer environment. For that reason, it has been very imDenisse Guerraportant for brands to develop native ads, editorial integration and that kind of communication since ad blocking is more and more of a danger to them. It’s also an opportunity to be much more creative with our content.”
Diego Reck
Diego Reck, SVP and Chief Marketing Officer at FOX International Channels Latin America, has a similar opinion, indicating that “one of the most noticeable trends in the marketing and advertising industry in 2015 was a more organic integration of  brands into agnostic content for each platform.”

The same trend was observed with respect to audiovisual content. Martin FrontinniAccording to Martín Frontini, Managing Director Latam & US Hispanics at MCN Zoomin.TV, “native advertising like ad-hoc web series for advertisers, product placement and branded content are formats that have begun to win a significant share of any advertising budget.”

Finally, as much as social networks are an entity in themselves, what is true is that they tend to be included in content marketing strategies. As Denisse Guerra indicated, “there is no doubt that companies’ social network and CRM campaigns have been the most relevant in 2015. The development of advertising campaigns that are 100% focused on social networks and brands’ e-commerce traffic are what have grown the most in the advertising industry this year.”

Native advertising like ad-hoc web series for advertisers, product placement and branded content are formats that have begun to win a significant share of any advertising budget.

Mobile Marketing: Geolocation and Transactional Advantages

Eugenia Denari, Director of Marketing at Google in Argentina, Chile and Perú, stated that “without a doubt, mobile was a huge protagonist this year.”

Jeremy PiotroutAnd  Jeremy Piotraut, Managing Director at Teads.tv Cono Sur, expressed that “today, users spend more and more time on mobile than in front of the television or other devices.”

Everything indicates that mobile marketing, as much as it was one of 2015’s trends, is here to stay.

In the words of Martín Jones, Multibrand Digital Manager at L’Oréal: “Today, everything is about staMartin Jonesrting with mobile: geolocalization and transactional experiences are the motor for a deepening presence in the mobile world.”

Multi-Screen: PC and Smartphones Media Consumption Jump

As Jeremy Piotraut reminded us, “while television is still an important media outlet, laptops and smartphones now surpass them in consumption time.”

John MafoutsisJohn Mafoutsis, SVP for Advertising Sales and Brand Solutions at Viacom International Media Networks Américas noticed a similar trend, stating: “In 2015 we saw the way that the consumer finds his or her favorite content  not just on linear television, but on multiple platforms. thanks to this evolution, advertisers have seen the benefit of offering a combination of paid TV with digital, mobile and live media as a part of a media ‘mix’.”

Martín Jones also sustains that “the video ad forms part of the agenda of any advertiser as an extension of his or her TV campaign, but more than anything for productions that are designed for the digital world (at a lower cost than that of generating a larger volume of content).”

According to Martín Frontini, “without a doubt, there has been an explosion of new formats and advertising channels with the rise of Youtubers, influencers and talents that reach the millennial cluster that is so coveted by brands. In this sense, there is an infinite amount of companies trying to group personalities and channels together with a captive audience that permits the brand to complement its traditional presence in the media, offline as much as online.”

Finally, Eugenia Denari commented, “In 2015, our most important project was to work on speaking to the multi-screen consumer that is constantly interacting with different devices. Our focus was on helping to generate even more integral and effective marketing strategies for new forms of consumption.”

According to Carlos Espíndola, Head of Latin America Digital Center  at 3M, “the most noteworthy aspect of 2015 was espindolathe adoption of programmatic buying for many advertisers, which continues to be an under-used practice, but which still helped to impact the right audiences and also prioritize the issue of where advertising money is invested. There is still much work to be done, but it is important for us to continue to communicate, evangelize and train technical market teams to understand the impact that this can have on not only audiences but also the efficiency of investments, not only digitally, but also on TV.”

Borja BeneytoSimilarly, Borja Beneyto, VP & Digital Regional Director in Latin America for Starcom MediaVest Group, commented that 2015 “was the year in which disciplines like programmatic buying were implemented, and in which we saw the appearance of new commercial data models oriented towards performance marketing.”

These were the most important trends of 2015 according to those we interviewed. Soon, we will be previewing 2016 with a look at everything those in the advertising industry should keep in mind in the new year.

 

What: Publicis Groupe has acquired RUN, a mobile-focused real-time data management and multi-channel programmatic buying platform.
Why it matters: Mobile ad spend is expected to increase from US$8.5 billion in 2013 to US$31 billion in 2017. Media planning and buying conglomerates have been busy either acquiring programmatic specialized companies (see WPP purchase of  Xaxis and its recent investment in AppNexus) or building them from scratch (e.g. OMD’s Accuen).

 6QvweJE1_400x400Publicis Groupe has acquired RUN, a mobile-focused real-time data management and multi-channel programmatic buying platform,  enabling marketers to execute data-driven campaigns and multi-channel programmatic ad buying. Details of the deal were not disclosed.

This acquisition goes in line with Publicis Groupe’s 2018 strategic plan to earn 50% of its revenue from digital – today representing 41.6%- following a a scarce 4% year over year growth revenue , reaching US$2.21 billion in the third quarter of 2014. The Groupe has been investing in technology, data, content, social and programmatic across all channels and devices.

Anticipated the need for clients to embrace programmatic as an irreplaceable component of their digital marketing plans, this acquisition marks the first of its kind for the Groupe. More recently, Publicis Groupe has wrapped a number of important partnerships across programmatic, including with AOL and VivaKi’s programmatic solution, Audience on Demand (AOD), as well as other digital focused companies like ZenithOptimedia, Razorfish,DigitasLBi and Adobe’s Digital Marketing Cloud.

Headquartered in New York City, RUN currently operates and reaches 50 countries and has identified over 800MM unique consumer profiles globally. RUN’s mobile-focused data management platform (DMP) collects consumer data sets captured from multiple sources, including cellular carriers and Internet Service Providers (ISPs), compiling information on location, CRM activities, behavior and demographics. In addition, RUN’s platform also provides actionable insights and analytics that enable both precision targeting and more effective ad spend. RUN’s omni-channel demand-side platform (DSP) powers data-driven media buying at scale; while its activation platform executes cross-device marketing campaigns across multiple formats including display and video.

Following this partnership, RUN will be aligned with Starcom MediaVest Group (SMG) and will be available as a resource to all networks of the Groupe  by Publicis’ ad tech solutions unit Vivaki. However, it will retain its name, management team and structure and operate as a standalone unit .As time spent on mobile devices continues to grow, according to eMarketer, mobile ad spend is expected to increase from US$8.5BN in 2013 to US$31BN in 2017.

“This acquisition will accelerate Publicis Groupe’s digital capabilities in the mobile space. The role of the agency has changed. We are no longer negotiating on traditional currencies. We’re negotiating on data and technologies. RUN provides the opportunity to break down walled gardens of data across all screens and devices to become a real, meaningful differentiator in how we service current clients and beyond,”said Laura Desmond, Global CEO of Starcom MediaVest Group.

 

What: Publicis Groupe has acquired RUN, a mobile-focused real-time data management and multi-channel programmatic buying platform.
Why it matters: Mobile ad spend is expected to increase from US$8.5 billion in 2013 to US$31 billion in 2017. Media planning and buying conglomerates have been busy either acquiring programmatic specialized companies (see WPP purchase of  Xaxis and its recent investment in AppNexus) or building them from scratch (e.g. OMD’s Accuen).

 6QvweJE1_400x400Publicis Groupe has acquired RUN, a mobile-focused real-time data management and multi-channel programmatic buying platform,  enabling marketers to execute data-driven campaigns and multi-channel programmatic ad buying. Details of the deal were not disclosed.

This acquisition goes in line with Publicis Groupe’s 2018 strategic plan to earn 50% of its revenue from digital – today representing 41.6%- following a a scarce 4% year over year growth revenue , reaching US$2.21 billion in the third quarter of 2014. The Groupe has been investing in technology, data, content, social and programmatic across all channels and devices.

Anticipated the need for clients to embrace programmatic as an irreplaceable component of their digital marketing plans, this acquisition marks the first of its kind for the Groupe. More recently, Publicis Groupe has wrapped a number of important partnerships across programmatic, including with AOL and VivaKi’s programmatic solution, Audience on Demand (AOD), as well as other digital focused companies like ZenithOptimedia, Razorfish,DigitasLBi and Adobe’s Digital Marketing Cloud.

Headquartered in New York City, RUN currently operates and reaches 50 countries and has identified over 800MM unique consumer profiles globally. RUN’s mobile-focused data management platform (DMP) collects consumer data sets captured from multiple sources, including cellular carriers and Internet Service Providers (ISPs), compiling information on location, CRM activities, behavior and demographics. In addition, RUN’s platform also provides actionable insights and analytics that enable both precision targeting and more effective ad spend. RUN’s omni-channel demand-side platform (DSP) powers data-driven media buying at scale; while its activation platform executes cross-device marketing campaigns across multiple formats including display and video.

Following this partnership, RUN will be aligned with Starcom MediaVest Group (SMG) and will be available as a resource to all networks of the Groupe  by Publicis’ ad tech solutions unit Vivaki. However, it will retain its name, management team and structure and operate as a standalone unit .As time spent on mobile devices continues to grow, according to eMarketer, mobile ad spend is expected to increase from US$8.5BN in 2013 to US$31BN in 2017.

“This acquisition will accelerate Publicis Groupe’s digital capabilities in the mobile space. The role of the agency has changed. We are no longer negotiating on traditional currencies. We’re negotiating on data and technologies. RUN provides the opportunity to break down walled gardens of data across all screens and devices to become a real, meaningful differentiator in how we service current clients and beyond,”said Laura Desmond, Global CEO of Starcom MediaVest Group.

 

The evolution of digital marketing cannot be understood without taking into account the growth of Mobile, which is the major global megatrend, said Alejandro Campos Carles, CEO of StartMeApp, during the 4th Annual Foro Mexico de Publicidad y Medios (#PortadaMex) last Tuesday.

Alejandro Campos Carles, CEO, StartMeApp
Alejandro Campos Carles, CEO, StartMeApp

There is no doubt that “the world is mobile,” said Campos Carles when he started the first panel “Desayuno Movilizando Mexico” during Portada’s 2014 Forum in Mexico that brought together over two  hundred key marketers and advertising specialists.

StartMeApp Mobile Real-Time Bidding Exchange, one of the tools of StartMeApp originated in 2011, and today delivers more than 30,000 million monthly ad impressions and serves mobile advertising campaigns in more than 60 countries in America, Europe, Asia and Africa.
“Our own RTB technology makes it possible to carry out auctions for buying and selling ad impressions in real-time, implemented within 100 milliseconds,” said Campos Carles.

Campos Carles leads a team that brings together more than 60 talents globally. He places  special emphasis on the importance of mobile penetration growth in Latin America. An example of  the increasing significance of Latin America is  the fact that eMarketer consulting firm “removed” the region from the “rest of the world” category, under which it was classified until the end of 2013.

Mobile  is going through a magical moment in Latin America and providing multiple opportunities

Nowadays, at least 60% of people in Latin America access internet through their mobile devices, which shows that the region is not immune to the global macro-trend.

Therefore, he said, through tools such as the Open RTB protocol, it is possible to work at a massive scale and place ad messages more efficiently.

It is not about “buying traffic” but knowing what type of audience is behind each campaign,

“It is not about “buying traffic” but knowing what type of audience is behind each campaign,” Campos Carles said .

He added that, “What is interesting to notice is that what is being discussed  is not a business model to reach everybody indiscriminately, but a business models where information and data are almost everything because we are not investing in the banner to be displayed everywhere, but to reach the target audience that the advertiser is aiming.”

At Argentina’s 2014 IAB Now, Portada interviewed Alejandro Fishman, president of IAB Argentina as well as managing director of Yahoo! Argentina.  Fishman shared his views on whether premium inventory will be ready for programmatic trading in Latin America, on the changing habits of LatAm’s Internet audiences, brands difficulties in adapting to mobile, Argentina’s digital market and more.

According to Fishman, mobile development in Argentina, content marketing and programmatic buying were the highlights of the 2014 IAB NOW Conference that took place last week in Buenos Aires.this year’s highlights. Key questions include: Will mainstream media be adapting to programmatic media buying? Will even Latin America’s digital media properties offering premium inventory for programmatic buys?  Fishman, who answers on behalf of Yahoo!, notes that “most inventories will be effectively available” for programmatic buying.

Getty Images Argentina/ Fotógrafo: Gabriel Rossi.
Getty Images Argentina/ Fotógrafo: Gabriel Rossi.

Portada: What can you highlight of this year IAB Argentina event?

Getty Images Argentina/ Fotógrafo: Gabriel Rossi.
Alejandro Fishman. Foto: Getty Images Argentina/ Fotógrafo: Gabriel Rossi.

Alejandro Fishman: “The idea, this year, was to do something were less stress is involved -with more networking opportunities. We also tried to integrate more content with entertainment. This year’s prominent themes are related to personification, mobile and content marketing. ”

“The audience wanted a change, we bring that change. Internet is about that, at least as we see it,” Fishman adds.

Portada: How would you describe the change in the audience?

Alejandro Fishman: “The audience is constantly changing and doing different things all the time. So, the main point is to work to grasp what the audience is really doing. We have to keep working on that. I believe the change lays in that people now want to get content at any time. They also want to be able to activate it or stop viewing anytime with total freedom and flexibility. That’s what is next. ”

Portada: What role should large multimedia conglomerate play in this new digital age?

Alejandro Fishman: “They need to adapt. I am also speaking from Yahoo!’s perspective. Yahoo! was a “computer first” company and now it is a “mobile first” company. Everything is planned for mobile and if something does not run on mobile, it is not done. This is reflected in all applications recently launched by Yahoo! They are all first released on mobile, tested on mobile, with the objective to reach a nice experience for mobile and only then made for PC. We must remember that content nowadays multiplies to all screens and multimedia has to adjust to that. They are already adapting and I think they are doing very well. ”

Portada: How do you think programmatic buying will evolve in relationship to Argentina largest media companies and media inventories (e.g. La Nación, Clarín, Infobae, etc)? Are they ready to offer their premium inventory to programmatic exchanges?

Alejandro Fishman: “I am answering from Yahoo’s perspective, since our company is making a big change in that direction.  Most of our inventory will be available for programmatic buying. And we will continue working to provide premium inventory for branding outside programmatic buying. It is necessary to adapt to the new programmatic dynamic. Advertisers  are interested in buying through this methodology. In my opinion, there is no need to be radical but to go along with this change. It is not one thing or the other. You can at the same time provide inventory for programmatic as well as to offer premium inventory for branding solutions. ”

We adapt to the trends of moving towards programmatic buying, but there is no need to be  radical.

Mobile

Portada: Do you think brands are also adapting well to mobile?

Alejandro Fishman: “A little slower. But I think, just as Fernando Zerboni , professor at IAE, was saying on his talk, that they have not yet realized that there has been  a change. If nowadays everybody wants to see the content on their mobiles and tablets, the advertiser definitely should take that into account. There are e-commerce sites like Garbarino, Fravega, Mercado Libre, etc. , which are all very adapted to mobile and the experience is actually good. For instance, the Freddo ice-cream shops have an application to buy ice cream,  the advantage being that they tell you the exact delivery time and that does not fail. That is a clear example of knowing how to adapt and understanding how the consumer is changing. ”

Some brands have not yet realized that there has been a change in terms of adapting to mobile

Portada: Where do you see the main trends over the next 12 months?

Alejandro Fishman: “Programmatic buying and Content Marketing are this year’s main topics. Video is another very important subject. ”

Argentina

Portada: How is Argentina’s economic and political situation impacting the country’s digital marketing industry? 

Alejandro Fishman: “It is impacting on absolutely every industry. The digital media industry is not isolated from what is happening in other industries like automotive, real estate, etc. Still, I do not think it’s going to be a bad year at all. Investment will continue to grow because the marketing and media sectors are undergoing deep structural changes. Many companies have already understood that they need to adapt to enormous changes in consumer habits. That definitely involves investments in digital media. Traditional broadcasting, as we know it, is increasingly being questioned. ”

Traditional broadcasting is increasingly being questioned

Portada: What headwinds does the Argentine market the Argentine market lack in terms for further development of the digital marketing industry?

Alejandro Fishman: “Education. We need to educate the new generations at theuniversities and train new professionals to start working in companies with a whole new “mindset”.”

Pierre Chappaz is CEO & Co-Founder of Ebuzzing and Teads Group.

Half of all internet advertising bought by brands is not seen by web users. It is a shocking statistic and the situation is worsening year on year, thanks to the rise of programmatic buying. In 2012 ComScore estimated that 31% of advertising was not seen, this number rose to 54% in 2013.

The recent announcement that GroupM will soon withdraw from open AdExchanges and operate solely on private exchanges clearly demonstrates that the lack of transparency and fraud in online advertising has reached an unsustainable level. It is time for an industry-wide rethink.

For video advertising the situation is potentially even more precarious, due to the domination of pre-roll advertising formats. Instream formats like pre-roll force web users to watch an advert before they are able to view their chosen video content. Leaving fraud, which accounts for 12% of all impressions , aside for now, the biggest threat to viewability is user behaviour.

The biggest threat to viewability is user behaviour

Today’s internet users have developed lightening quick reflexes to avoid advertising they do not wish to watch. They open a new tab or window, mute the sound the very instant an unwanted advertisement appears in front of their video content.

A recent study by Tubemogul revealed that 70% of all non-viewable impressions are non-viewable because the window in which the video is playing is no longer on the screen.

Once bot traffic is discounted, the viewability of pre-roll advertising drops to 22% on average and 48% in premium environments. Ultimately advertisers who buy on CPM are paying between two and five times more than they should.

To combat the issues surrounding viewability, new technology able to precisely measure the viewability of videos from beginning to end has been developed.

Pre-roll

Although monitoring viewability is key, it is more important to develop formats which encourage the user to watch an advert, not avoid it at all costs. Returning to the topic of pre-roll advertising, it is clear to me that the days of non-skippable pre-roll advertising are numbered.

The days of non-skippable pre-roll advertising are numbered.

It is impossible to force a web user, who is active, mobile and engaged, to watch an advert if they do not want to. Web users are not in the same frame of mind as those watching TV at the end of a long day, half asleep and too lazy to change the channel during the ad breaks, they will skip if they are not interested. While the majority of users may not be interested in watching your advertising, why not focus on those who actually want to hear from your brand?

We believe that adverts have more value when they are intentionally viewed by web users. Video adverts are often highly entertaining and great quality, and can be offered as relevant content, not a painful toll that must be paid before video content can be viewed.

The view-to-play concept is an efficient and elegant solution to the challenge of viewability in video advertising. But it also has another benefit: it opens huge new premium video inventory in the world’s largest media sites. The availability of such premium inventory, on a global scale, can only be good news for advertisers, agencies and media owners alike.

Pierre Chappaz has held marketing and communications positions at Toshiba, Computer Associates and IBM. He founded the site Kelkoo in 1999, he has been president of Yahoo Europe and also created Wikio in 2005, wich merged with Ebuzzing in 2009.

More and more major clients are embracing programmatic buying and, as importantly, they are keen on keeping the data obtained through their digital buys all to themselves. Mondelez just announced a global online video partnership with TubeMogul (press release). The partnership aims at optimizing Mondelez International’s online video advertising strategy – including media planning, buying and ad serving − using TubeMogul’s software. Interestingly, the partnership takes place directly between the platform provider and the client and not with Mondelez’s media agency (Starcom Media Vest), although the agency will be involved.

“Why would I not buy media in a way that I can get data back and use it to make smart decisions?”. Bonin Bough, VP of global media and consumer engagement at Mondelez International, said during a panel at the Cannes Festival. Heineken is working on a similar strategy. The gang of marketers directly controlling their exchange-traded media platforms keeps getting larger, Adexchanger notes. Its membership now includes Kimberly-Clark, Kellogg’s, American Express, Procter & Gamble, Allstate Insurance, 1-800-Flowers and Unilever.

Why would I not buy media in a way that I can get data back and use it to make smart decisions?

Kimberly Clark and Kraft are two major CPG’s that are also working directly with DMP’s, DSP’s or other digital platform providers (in the case of Kraft it is DMP Turn). Both company’s programmatic platforms also include the U.S. Hispanic market.

Focus on U.S. and Canada

Regarding the Mondelēz International – Tube Mogul partnership,  it  reflects the growing trend of utilizing programmatic buying to improve online video effectiveness. Mondelēz International will debut the use of the software in Canada and the United States with potential expansion to additional markets in Africa, Asia, Eastern Europe and the Middle East. Mondelez  allocates about U.S. $200 million annually to global marketing, and 25% of that spend goes to digital advertising. The company -which owns more than 40 snack brands including Oreo and Wheat Thins- estimates that the  digital ratio will grow to 50% by 2016, the majority of which will be devoted to video. Latin America is not a priority for now in Mondelez programmatic expansion. As Annika Blockstrand, Regional Media Director for Mondelez International recently told Portada, “currently, in Latin America  Mondelez on average allocates between 8% and 9% of its overall media budget to digital media.” For 2014, the objective is to increase that ratio to 15%. The share of that spend that is used in programmatic is very low still in Latin America.

In the first panel of the LatAm Summit on programmatic buying, Diego Fernandez Martin, SVP/Managing Director of Starcom, moderated the conversation between Clara Alvarado, Senior Marketing Manager of Cisco; Marlene Moronta, Marketing Director of Estee Lauder; and Alejandro Campos Carles, Co-Managing Director & Founder of StartMeApp.

So is Latin America ready for Real-Time Bidding (RTB) and programmatic buying?

Clara Alvarado of Cisco said that on the one hand “there are some big infrastructure problems,” but on the other “major companies are also making big investments in order to work with RTB in Latin America.” She added that “today there are some media agencies which are really prepared for programmatic buying, and others that aren’t.”

Today the challenge is to create content in real time

According to Alejandro Campos Carles of StartMeApp, “Latin America still faces many challenges, but it is experiencing great growth and there are many advertisers these days who need to reach audiences and not media.”

Two years ago, nobody in Latin America was thinking about advertising on mobiles; now everyone wants to have a mobile presence

Diego Fernandez of Startcom asked: Is RTB a trend, or is it the future?

“Data is everything, and will still be everything 20 years from now,” answered Campos Carles. For her part, Clara Alvarado said: “I don’t think it’s a trend, I think programmatic buying will make life easier for people, who will no longer be getting ads which are irrelevant for them.” Marlene Moronta of Estee Lauder answered: “I think that some aspects of RTB won’t stay the same as they have been up until now, but I definitely believe we are moving towards programmatic buying.”

Moronta emphasized the importance of producing content in real time, and the importance of placing it correctly, in an organic way. “It doesn’t just have to be good content: it has to be in a relevant context.” Moronta also said that it is “necessary to interact with consumers and that they join in telling your story.”

In the first panel of the LatAm Summit on programmatic buying, Diego Fernandez Martin, SVP/Managing Director of Starcom, moderated the conversation between Clara Alvarado, Senior Marketing Manager of Cisco; Marlene Moronta, Marketing Director of Estee Lauder; and Alejandro Campos Carles, Co-Managing Director & Founder of StartMeApp.

So is Latin America ready for Real-Time Bidding (RTB) and programmatic buying?

Clara Alvarado of Cisco said that on the one hand “there are some big infrastructure problems,” but on the other “major companies are also making big investments in order to work with RTB in Latin America.” She added that “today there are some media agencies which are really prepared for programmatic buying, and others that aren’t.”

Today the challenge is to create content in real time

According to Alejandro Campos Carles of StartMeApp, “Latin America still faces many challenges, but it is experiencing great growth and there are many advertisers these days who need to reach audiences and not media.”

Two years ago, nobody in Latin America was thinking about advertising on mobiles; now everyone wants to have a mobile presence

Diego Fernandez of Startcom asked: Is RTB a trend, or is it the future?

“Data is everything, and will still be everything 20 years from now,” answered Campos Carles. For her part, Clara Alvarado said: “I don’t think it’s a trend, I think programmatic buying will make life easier for people, who will no longer be getting ads which are irrelevant for them.” Marlene Moronta of Estee Lauder answered: “I think that some aspects of RTB won’t stay the same as they have been up until now, but I definitely believe we are moving towards programmatic buying.”

Moronta emphasized the importance of producing content in real time, and the importance of placing it correctly, in an organic way. “It doesn’t just have to be good content: it has to be in a relevant context.” Moronta also said that it is “necessary to interact with consumers and that they join in telling your story.”

The 7th Annual Portada Latam Advertising and Media Summit will take place on June 4 and 5 2015 in Miami

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.

cadreonIPG 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.

Our editor Carolina Ré presents our first Pulso BA column on the pulse of the marketing and media industry in Buenos Aires. In this first installment, we discuss the hot-button topic of programmatic buying. So hot, that it is burning hands in Latin America. Should we let it go or grasp it firmly in our hands?

Translated by Candice Carmel

ESPERAN 200.00 VISITANTES A LA ALDEA DIGITAL 2014 ,INAUGURADA HOY EN MÉXICO

 If there’s one thing we porteños know, is to be at the forefront. “The Paris of Latin America” is how Buenos Aires is fond by tourists, and not only because of the similar architecture between the two cities.

Innovation in large cities is known to “hit harder,” as we say in these parts. And it is also known that Latinos and U.S. Hispanics are big and early users of technological innovations.

While the number of smartphones in LatAm is not off the charts, in big cities such as Buenos Aires smartphones are commonplace and people are literally obsessed with their mobiles and interactions on social networks.

The world of marketing and advertising in Buenos Aires is no exception to this trend. In its quintessential avant-garde ways, the city serves as a regional hub for start-ups, ad networks, and companies specializing in digital media programmatic buying. Yes, you read right. Programmatic buying companies.

Not that there are a huge number of them, but specific departments are emerging in media buying companies and agencies, as well as companies specializing in programmatic buying and advertising networks that are beginning to offer this kind of buys among its services. These include Redmas, Headways, Metanetwork, Zetanet, Xaxis, Accuen, Digilant, Pulpo Media, and StartMeApp on mobiles, to name a few examples. And to say “they are emerging” already sounds old. In Buenos Aires, there are companies that started “testing” this new model for buying digital media years ago.

What then? Is the “Paris of Latin America” also into RTB?

The answer is NO. Investment budgets in LatAm for RTB are lucky to reach 5%. Annika Blockstrand, regional media director for Latin America at Mondelez, and one of the main speakers at our next LatAm Summit in Miami in June, says: “The reality is that only a small part of the budget is for RTB. Programmatic buying is still very new and we are testing it out.” For his part, Martin Kogan, co-founder and co-CEO of Headway Digital, says that “this year will see a drastic change in the development of RTB”. Germán Herebia, COO of Redmas, told Portada that, in his opinion, “programmatic buying will grow a lot when all media buying companies have developed trading desks [for it]. Overall, global media buying companies have developed their trading desks, but have not led strongly yet in Latin America.”

Expectations regarding the percentage growth of programmatic buying transactions are enormous. But for now, they are just expectations. Nor can we deny that there are more players and the trend is indeed upward, but is it enough? And rather than wondering if these growth figures “are acceptable or not,” we should ask: Why is it that in Latin America, and in Buenos Aires specifically, known for its innovative excellence, is the digital media buying trend through RTB not gaining a foothold?

Digital GlobeMost, if not all, companies working with programmatic buying are aiming at and betting on it at the regional level in Latin America, and some on a global scale. To such an extent, in fact, that it almost pains them to identify themselves as “Argentine companies.” That’s when the different nuances set in: “We are based in Argentina” or “Founded in Argentina, but we are a global company.” Would the same thing happen in the U.S. and Europe? I don’t think so.

“Media does not want to let go of the steering wheel” is the talk heard around the water cooler. “Hand in hand bargaining is lost” is also mentioned regarding media and the handling of ad space sales. It would seem that the days of dinner and “I’ll call you” would be a thing of the past with programmatic buying, but that is not the case.

“There are many interests at play with media buying companies too,” is another comment heard in the halls of the digital city of Buenos Aires.

Rumors of arrangements between media buying companies and the managing of their advertisers and major media are not new either. The maxim “never verifiable, always profitable” applies perfectly in this case.

Are these some of the reasons why the budget for digital media, and specifically for RTB, is not setting the trend from Buenos Aires to the rest of LatAm?

Things have a way of working themselves out,” as Indio Solari, singer and founder, along with Skay Beilinson, of the now-defunct famous Argentinean rock band Patricio Rey y sus Redonditos de Ricota, would say.

Programmatic buying of digital media is a system for placing digital advertising that is gaining ground in the U.S. and is Man finger pushing interface use of innovative technologiesjust becoming known in Latin America.
What do the experts have to say about it? What are the pros and cons of fully computerized media buying? Will it be used in Latin America?
These are some of the questions we posed to Alejandro Campos Carlés, co-director and founder of StartMeApp; Marcelo Montefiore, CEO of Global Mind; Lucio Grimaldi, VP for Latin America at Publicitas; and Juan Pablo Suárez, Business Development Senior Manager, U.S. Media Consulting.

 

What is programmatic media buying?

Programmatic buying of digital media is a computerized system for buying advertising impressions automatically using data supplied by the advertiser. Programmatic buying is based on algorithms that seek out available global inventories that match what the advertiser is looking for.

The purchase is made via Real Time Bidding (RTB), a concept rarely used in Latin America. RTB is a “digital auction” whereby the computerized platform cranks out bids for desired impressions (based on data provided by the advertiser) in available inventory that matches the advertiser’s requirements. The process is performed constantly in a matter of milliseconds, and the platform then determines which advertiser gets what impressions.

Is this form of digital media buying gaining ground in Latin America?

The automated purchasing of advertising in the region is still in its infancy and agencies, advertisers, and the media are all in the process of understanding this new system.

In fact, programmatic buying has yet to be established in all U.S. markets, although it is quickly moving forward. A study conducted by GLOBAL MAGNA predicts that by 2017 almost half of all digital media buys in the U.S. will be done via programmatic buying.

“Programmatic buying is still slow, as advertisers and agencies are not sharing much information,” said Diego Fernández, Director of Media and Digital, North America, for Burger King Corporation, during Portada’s LatAm Summit this year in Miami. “But I think in the next few years it will be very important and good to see more of the same,” he added.

“Very few agencies have come forward to ask us about programmatic buying. We have not yet seen any significant inclination towards programmatic buying when it comes to reaching audiences in Latin America and the U.S. Hispanic market,” Christopher Stanley, CEO and Founder of Alcance Media, told Portada.

For Lucio Grimaldi, VP Latin America at Publicitas, the development of programmatic buying in Latin America is currently at an early stage but with a clear eye on the future. “I think we are at an early stage, but there will be a very important development in the near future. Programmatic buying in Latin America will no doubt grow significantly in the next few years. Many clients and agencies in Europe and the U.S. began work in this area years ago and it is inevitable that the same phenomenon will occur in Latin America.”

Juan Pablo Suárez, Business Development Senior Manager at U.S. Media Consulting, pointed out that “Latin America is going through one of its best periods as an emerging region, where companies of all levels and industries are making investments and the digital world is no exception. We increasingly see new players entering the region and that is helping the concept of programmatic buying to rapidly grow and be adopted, especially in markets where the benefit is immediately apparent, such as in e-commerce. While spending levels [in LatAm] are similar to those seen in the U.S. or Europe about four years ago, the trend is pointing toward double-digit growth for a few years. However, there is still a long ways to go for Latin America to keep up with other regions of the world.”

The pros and cons of programmatic buying

While the majority of the executives interviewed by Portada agreed that programmatic buying is a good thing and needs to be implemented to achieve better ROI results, others also expressed some doubts about these new technologies, mainly about the way they measure results.

At this year’s Portada LatAm Summit, Axel Steinman of Microsoft said that new technologies do not solve the larger, more structural problem in the industry—a lack of consensus on how to use data and metrics smartly. “It would be wonderful if we could sit down as an industry and agree on something,” said Steinman during the LatAm Summit. “Many of us acquire bad impressions by doing the wrong thing and that’s a big problem,” he added. “Microsoft, which invests 50 percent of its advertising resources in digital media, is still going through a learning process.”

Marcelo Montefiore, CEO of Global Mind, also said in an interview with Portada that “measuring everything is essential,” and thinks that programmatic buying provides just that. “Metrics is what allows us to make adjustments and makes change possible.”

Experts critical of programmatic buying claim it is a complex operation that can hinder growth if the human hand is completely taken out of the process.

But for Juan Pablo Suárez of U.S. Media Consulting, human intervention will never disappear, because “defining parameters is essential for programmatic buying to work and today that is only possible with human intervention.” But at the same time, “it is possible today to have an electronic market for digital advertising where a significant percentage of available inventories are interconnected with all relevant suppliers globally. Optimization cycles go beyond what is humanly possible, both in recurrence as well as the number of variables that are taken into account when assessing what value to offer in a bid,” he added.

Grimaldi of Publicitas agrees that programmatic buying is a good thing for the industry and suggests that programmatic buying will not replace traditional media buying. “I don’t think that programmatic buying will replace traditional media buying, as each has different functions and goals, in my opinion. Traditional [media] buying always requires a human factor, while programmatic buying is primarily based on remaining inventories,” said Grimaldi.

Alejandro Campos Carlés, co-director and founder of StartMeApp, also believes that programmatic buying is a positive for the industry: “If you look at it from the perspective of the advertiser, it allows you to know the value and quality of the impression before buying it, which lets you achieve much greater [target] relevance. The impression is important because you are reaching the audience in real time. Both advertiser and audience are connecting in real time and that makes all the difference. And it does away with [the need for] targeting, behavior studies, etc.”

“Publishers can also achieve greater efficiencies, as the medium is always effectively monetized. For mobile advertising, it was understood this was something that had to be implemented from the get-go,” added Campos Carlés.

Marcelo Montefiore, CEO of Global Mind, believes that “in a few years, executing online campaigns will be much more about pushing buttons than about negotiating with a person and doing [media] planning by hand.”

“Agencies will soon be doing their buying with just a push of a button” – Marcelo Montefiore, CEO, Global Mind.

Lucio Grimaldi, Publicitas, expects that about 20% of all digital media buying will be done through programmatic buying in the near future.

“There are many players who are not going to join this type of buying now, but will be forced to do so,” claimed Campos Carlés, of StartMeApp. “Google, Millennial Media (USA), and Exchanges-Interactive (which bought Nokia), already use RTB. We joined the RTB bandwagon not because we wanted to be innovative, but because media can be bought more efficiently this way and we can achieve better results.”

Juan Pablo Suárez, U.S. Media Consulting, added: “Programmatic buying enhances and accelerates the traditional process—it is a natural evolution. For the past 15 years, digital advertising went through cycles in which inventory and demand aggregators emerged in different layers (sites, AdNetworks, AdExchanges, and DSPs), each integrating the previous layer’s supply, limited only by the technology and processing power available.”

Media buys vs. audience buys

Traditional media buying involves analyzing the digital media where we want to place our advertising. Among other things, the analysis includes thinking about media identity, its audience, number of unique visitors, etc. With the advent of programmatic buying, the very concept of buying will change for some experts. It will no longer mean buying “media,” but rather buying “audiences.”

But the conception of audience will also change in this sense. The audience will no longer be segmented by traditional categories such as sex, age, and socio-economic group, but will instead have as many categories as the advertiser desires. In other words, we can create audiences in highly defined categories, for example: those who have searched for price quotes on microwave ovens, those who have visited this site or that one, etc.