It’s no secret that creative has lagged behind marketers’ ability to optimize media campaigns. Turns out that some of the delay derives from creative agency business models.

To David Moore, President of WPP Digital & Chairman of its Xaxis unit, it comes down to being able to pull as many levers as possible for clients.

“With the advent of dynamic creative optimization, it’s another lever for us to pull,” Moore says in this interview at the recent Beet.TV Leadership Summit titled Outcomes and presented by Eyeview. “We have found that when you are tailoring ads on the fly for a particular user or group of users, that performance normally increases almost every single time.”

Asked what is holding back the advance of dynamic creative optimization—the ability to tailor ads on the fly to make them most relevant to particular audiences—Moore points to traditional business practices.

Companies like Eyeview benefit from media agencies adding an incremental CPM onto a media buy, harness dynamic creative optimization “and are getting a very fine return on investment,” according to Moore.

Contrarily, creative shops have tended to be time-and-materials focused. As a result, they don’t have budgets to fund such incremental media buys.

“I think they have to reexamine their business models and embrace the data that comes from utilizing dynamic creative optimization,” Moore explains.

So will the advertising industry ever re-bundle creative and media assets, which became separated in the 1990’s as a result of marketers awarding their creative assignments to one agency and media to another?

“It’s a good question and I think with the advent of digital, the whole value chain has become blurred,” says Moore. “You have a lot of people intruding on parts of the value chain that were historically parts of an advertising agency.”

Now, every big digital media company has a creative group not only for internal purposes but also for ideation of creative themes that are pitched directly to brands. As a result, agencies often buy what’s already been created.

In the addressable television space, Moore envisions creative and media shops working closely together: creative figuring out the “right” ad and media deciding who the “right person” is to target with it.

“In the future, it’s going to be video advertising coming together in real time and tailored to a particular user or group,” Moore concludes.

Interviewing David Moore for Beet.TV was Rebecca Lieb (Conglomotron).

This video is part of a Beet.TV leadership summit on video outcomes presented by Eyeview.   For more videos from event, please visit this page.