Magna Global NA President Argyilan: Media Buying Models “Will Fall Apart in Two Years”

By on 09/06/2013 10:11 AM @robertandrews

SAN FRANCISCO –  Hold on to your hats. The decades-old way advertising has been bought and sold could start to collapse in 24 months.

“A lot of media companies have been good money with the old model,” IPG Mediabrands’ Magna Global north America president Kristi Argyilan tells Beet.TV in this video interview. “Our hypothesis is that that model starts to fall apart in another two years.”

Argyilan was speaking to Beet.TV about the consortium Magna Global formed last month with A+E Networks, AOL, Cablevision, Clear Channel Media and Entertainment and Tribune to help it toward an “automated future” in which half of media buying is automated by 2016.

“Our consortium is meant to be a private room where we can start to play around with these new ways of doing business without introducing a lot of risk to any of us as we start to experiment with things,” she says.

“We’re taking all of the manual labor that should be automated out of the system by finding connective technologies to bring all these legacy systems together.

“The intent is for all of our partners to bring inventory to the consortium so that we can start to play around with different ways of pricing and tracking performance against specific target audiences that are client-based audiences.”

Working with Adap.tv

When IPG Mediabrands’ Magna Global media unit announced a partnership with Adapt.tv last month, it was seen as a win for AOL’s video ad tech firm.

Now Manga Global’s  Argyilan says the deal will let her clients target video ads far more specifically than previously.

“From the get-go, they identified themselves as a technology company,” she says in our video interview. “They brought development time to the relationship so that we were able to think about how we could use them as a platform on a broader basis than simply procuring video inventory.

“We’ve incorporated our discrete data stack in to their platform so that we can now star to look at different types of media inventory with our data applied so that we’re buying on a more sophisticated metric.”

We interviewed her in the Magna Global offices in San Francisco offices earlier this week.

In an unrelated development, the acquisition of Adap.tv by AOL was finalized today.

 

Recent Videos
image
Data is an “Enabler” of Creativity, JWT’s Jeffrey

When J. Walter Thompson’s Non-Executive Chairman Bob Jeffrey got his start in advertising, it was normal for agencies to present a single TV spot to prospective clients in order to prove their credentials. For example, at Chiat/Day, where he worked early in his career, they showed the “1984” Apple ...

image
Addressable TV will Provide Unprecedented Granularity, SMG’s Scheppach

CANNES — So-called “addressable TV”, in which TV sets can now speak back to broadcasters, are tantalizing with the promise of household-level ad targeting. But addressable TV is not just about more refined TV targeting – the device in the living room is one platform that will feed ...

image
Careers in AdTech Will be Powered by Digital Transformation, AOL CEO Tim Armstrong

Less than 10 percent of e-commerce and advertising is powered digitally —  but that will inevitably change. And the looming transformation will provides a twenty to thirty-year “tailwind” for the entire adtech and media industry which will mean vast opportunities for young people ...

image
Big Changes in the Values of Brands Powered by Geography and Technology, Sir Martin Sorrell

In the past 10 years, since the WPP-owned global brand consultancy Millward Brown has tracked the value of brands with its BRANDZ 100 rankings, there have been many changes.  Over that period, nearly half of the companies have changed.  This upheaval  has been powered by two major factors:  geography and ...

image
Addressable TV Advertising is Changing the “Lumascape,” Banker Kawaja

CANNES – As addressable TV advertising emerges, so are a number of companies including Visible World (recently bought by Comcast), Clypd, Simulmedia and others.  For the new medium to succeed, one essential will be companies that focus on yield management around addressable TV, says investment banker ...

image
A “Whole New World” of Video Advertising Coming to Comcast/NBCU, Driven by Set-top Data

CANNES – Comcast’s data from its twenty millions set-top boxes, coupled with marketers’ first party data, will create a “whole new world” for NBC Universal, for both advertising and content creation, explains Linda Yaccarino, Chairman, Advertising Sales and Client Partnerships ...

image
WPP’s Sorrell Wants Nikkei To Make FT More Ad-Friendly

It was a WPP agency that devised The Financial Times’ once-famous marketing slogan, “No FT, no comment.” So, what does WPP CEO Sir Martin Sorrell think of Pearson’s sale of its newspaper to Japan’s Nikkei for £844m ($1.3bn) this week? Speaking with Beet.TV in this video ...

image
Millennials Will Transform the Way Agencies Work: JWT’s Jeffrey

When considering setbacks over the course of his career, J. Walter Thompson’s Non-Executive Chairman Bob Jeffrey thinks of losing accounts, which he always took “very personally and emotionally.” In particular, he remembers when the agency lost most of its Microsoft business. “That was very painful ...

image
JWT’s Mirum Brings “Deeper Technology Expertise”

CANNES – “I think what clients are looking for from agencies now is a partner that helps them navigate,” says Lyle Tick, chief growth officer for J. Walter Thompson. “And that’s a lot of what we’ve been doing at J. Walter is restructuring ourselves in order to deliver those types of ...

image
Addressable TV Can Unleash TV Ad Creativity

CANNES — The $72 billion US TV advertising industry is premised on making 30-second spots that target consumers. Imagine what happens when TV sets give advertisers the cues they need to target customers individually. Michael Bologna, president of GroupM’s Modi Media division, which is working on ...

image
The Future Is The Vast, Unconnected World: Facebook’s Everson

These days, Pets.com is part of internet folklore – an early dot.com juggernaut that, in its mission to sell pet supplies direct to consumers, burned bright, launching in August 1998 and going from an IPO to liquidation in 268 days. Carolyn Everson remembers the site with horror, too – but, ...

image
Oculus, Microsoft HoloLens, Snapchat and the Inevitable Transformation of Media: Daily Mail’s Steinberg

CANNES — When considering the future of media over the next decade, the Daily Mail’s North America CEO Jon Steinberg thinks we have to be open to what may have seemed impossible even two years ago. “When I look at my 6-year-old daughter, I’m pretty sure she’s not going to drive a car,” he ...

loader