Advertisers are revolting against wasting huge portions of their digital advertising budgets on “non-working media.” The process of buying digital advertising is notoriously inefficient; Google estimates we are wasting $3.6 million per hour using our current methods. In this session, we’ll dissect the problem, discuss implications, and present a path towards reform.
This presentation was given by Bionic Advertising Systems CEO, Joe Pych at the IAB Ad Operations Summit on November 3, 2014 at the Crowne Plaza Hotel in New York, NY.
17. Entry Level Salaries by Profession
$25,000
$70,000
$80,000
Agency
Consulting
Technology
Source: Why Agencies are Starved for Talent, August 2014
18. 2/3rds of Agency Staffers Planning to Quit Soon
19.3
42.7
30.6
7.5
Actively looking
Next Year or Two
Five Years
Lifer
Percent by Commitment
62.0%
Source: Digiday State of the Industry Survey, February 2013
21. The “Cost Plus” Agency Compensation Model creates a perverse incentive to be inefficient
22. ×
Hourly Rate
Number of Hours
Procurement
Inefficiency
23. “The cost of not having a connected business is costing the [digital advertising] industry $3.6 million dollars per hour.”
Neal Mohan, Google’s Vice President of Display Advertising Products at Google’s thinkDoubleClick June 2013 event.
47. Benefits of Data-Driven Workflow
•Reduced “Non-Working Media” Costs
•Increased Speed and Agility
•Higher Value Work
•Higher Pay and Job Satisfaction
•Better Advertising Results
•Happiness