IPG Mediabrands Shifts Pay Structure to “Pay For Performance”

By on 06/18/2013 6:55 PM @daisywhitney

MOUGINS, France  – About half of IPG Mediabrands clients now pay the media agency on a pay-for-performance rather than commission basis, says Matt Seiler, Global CEO, IPG Mediabrands in an interview with Beet.TV. He contends that commission-based fees that incentivize agencies to spend as much of the client’s money as possible are out of step with the reality of the paid, owned and earned marketing world and that pay-for-performance is a better model for the future.

“Whatever your KPIs are, those should be our KPIs,” he says in this video interview. A KPI-based payment also affords more flexibility. In the past, if an agency noticed something happening with product pricing that was out of synch with how it’s paid, the agency had little motivation to suggest changes. A pay-for-performance helps the agency look out for the client more.

In addition, Mediabrands is shifting to use more real-time campaigns. “We have committed in North America to delivering 50% automation across our buys in three years.”

We spoke with him on Monday at YuMe Video event hosted by IPG at the agency’s villa in the hills above Cannes.

Recent Videos
image
Direct-To-Consumer Video Offerings Slated to Grow, thePlatform’s Roberts

Expect a rash of direct-to-consumer over-the-top offerings from networks and broadcasters in the next year or so, says Marty Roberts, co-CEO of thePlatform in an interview with Beet.TV. “Networks and broadcasters need to establish a direct relationship with the audience,” he says, and ...

image
Tribune Picks Taboola For TV Sites’ Content Marketing: Report

Big media companies are increasingly keen on locking in long-term native advertising commitments, if the latest of two big announcements this week is anything to go by. Tribune Media’s broadcast subsidiary Tribune Broadcasting, whose TV stations include KTLA of Los Angeles and WGN-TV of Chicago, is ...

image
Mediaocean Extends Digital Video Ads With Videology

Mediaocean, which currently helps ad buyers plan, execute and analyze advertising on TV using software, is about to get greater traction in the online video world, through a partnership with Videology. The integration will make online video ad inventory amassed by Videology buyable by Mediaocean‘s ...

image
TV Everywhere Authentication Rates Improving, Marty Roberts of thePlatform

In-home, improved authentication protocols can dramatically improve the consumer experience for TV Everywhere, says Marty Roberts, co-CEO of thePlatform in an interview with Beet.TV. In some cases, log-in failure rates are north of 40% and that’s too high to be sustainable. However, when multichannel ...

image
Video Ad Customization Platform Eyeview Raises $15 Million in New Venture Round

Eyeview, the New York-based company that provides marketers with the technology to personalize digital video ads to specific consumers, has raised an additional $15 million, the company announced on Monday. More on the raise and other developments reported here on Re/code by Peter Kafka. Last month, we spoke ...

image
AOL Presents iJustine In Chicago: the Beet Video Summit w/ McDonald’s,Target, Digitas, Havas and...

iJustine, a pioneering  innovator  in the Web originals space will headlining a two hour video summit on the emerging medium of digital video. Also participating will be  brand marketers  from McDonald’s and Target and media agency execs from Digitas, Havas and Starcom MediaVest Justine will speak ...

image
Digital Means ‘World Of Opportunity’: DigitasLBi’s Shlachter

NAPA, CA — As much as it poses challenges, the ongoing explosion in digital media is also opening up a wealth of new opportunities for marketers to reach consumers, says DigitasLBi North America’s chief investment officer Adam Shlachter. “The numbers are there now – if you look at ...

image
NBC Launches Programmatic Division Across Properties

NAPA , CA — NBC Universal recently launched a programmatic initiative called NBCUx as part of an effort to enable data-centric buying across its properties. As programmatic buying spreads in usage, the key is to view all inventory in this potential light, says Aaron Radin, SVP Partnerships and Portfolio ...

image
thePlatform’s mpxReplay Enters VOD Encoding Fray

Comcast-owned video management outfit thePlatform is launching a new product with aims of helping content owners encode broadcast material for VOD quicker. So-called mpxReplay can be used to help viewers watch recently-aired shows as catch-up VOD or to start over watching currently-airing shows. “We ...

image
Web Star iJustine Joins Brands and Ad Execs in Chicago for Video Summit with AOL and Beet.TV

Video star iJustine, whose series on AOL about wearable tech has gotten some 20 million views in its first season and is now in season two, will be among the speakers at a video summit in Chicago on November 19 at the Soho House.   The program will take a look at how Web creators, brands and their agencies ...

image
FreeWheel Aims To Empower And Protect Advertisers, Publishers

NAPA, CA — Comcast-owned video ad server FreeWheel cut its recent partnership with TubeMogul to protect but empower both sides of the advertising chain, says FreeWheel business solutions GM James Rooke. The partnership sees advertisers use their own audience data to buy video ads via TubeMogul, ...

image
Brand Video Publishers Must Give Advertisers Freedom: Say Media’s Catto

Lifestyle digital publisher Say Media is gung-ho about producing branded content for advertising partners on its content sites – but that doesn’t mean it thinks it should have exclusivity over the ensuing material. “We give the partners rights and permissions to use that video content on ...

loader