This document discusses the evolving relationship between CMOs and CIOs in digital marketing. It notes that technology and marketing are now inextricably tied, with CMOs expected to spend more on IT than CIOs by 2017. It emphasizes that developing a strong CMO-CIO partnership is critical to successfully incorporating digital technology and maximizing technology investments.

1. 5 Myths of Programmatic Buying
Brian Gleason, Managing Director, North America
Digiday Programmatic Summit 2014

4. The Biggest Challenges Programmatic Faces According to
Agencies
A lack of understanding of what it is and how it works
Source:
eMarketer 2014

6. “CMO’s are waking up to the fact that IT can’t be
treated like a back-office function anymore, the CIO is
“It’s no longer marketing that drives business
growth – it’s digital marketing…CMO’s and CIO’s
becoming a strategic partner who is crucial to
developing and executing marketing strategy”
must recognize that technology and
marketing are now inextricably tied.
– McKinsey & Company
By 2017, CMO’s will spend more
- Forbes.com
"Getting the CMO/CIO relationship right is critical
for delivering seamless, omnichannel experiences
on IT than their counterpart
In the for past customers.”
year, we’ve heard…
CIO’s.
-Brian Whipple, Senior Managing Director,
“Developing a strong partnership between CIO’s and
CMO’s is critical to successfully incorporating digital
technology into the enterprise. A strong CIO–CMO
partnership as one of the 5 critical factors to
-Laura Accenture McLellan, Interactive.
Gartner Analyst
“In the next five years, digital will account
for more than 75% of marketing budgets.”
maximizing your technology investments.
- Price Waterhouse Coopers
-Adweek.com

7. “By embracing the complexity that
comes with today’s intricate systems
that knit together the programmatic
audience buying landscape, we
actually arm ourselves with more
tools.”
-Evan Hanlon, VP Strategy & Investment, Xaxis

9. WPP announced a 2.7% increase in
rep“Aodrt-eadg erenvceyn eume ptloo y£m5.e4n7tb ins iant 2it0s1 4.
highest level since 2001, agency
stocks have hit all-time highs and U.S.
ad spending this year is forecast to grow
“[WPP is] fortunate to have some
of the most celebrated agencies in
at its fastest clip since 2004.
the business, all of which
U.S. agency revenue increased
3.7% to $39.1 billion in 2013,
It's a good time to be in the agency
game.”
a record revenue.
-Adage DataCenter Agency
-Adage.com
Report
“Agencies are on track for
another year of…growth in
2014.”
-Adage.com
continue to be successful, both
creatively and commercially.”
-Sir Martin Sorrell, CEO, WPP

10. “Headline-writers will continue to
proclaim the death of advertising, and
marketing, and agencies – and they’ll
still be wrong.”
“While traditional models persist, the agency
sector cannot afford to disinvest without cross
channel integration and the co-existence of old
The Agency Model is NOT
dead… but it is evolving.
-Sir Martin Sorrell, CEO, WPP
“WPP, a strong proponent of a
and new.
cross-agency "team" approach,
has team leaders coordinating
- Rob Norman, Chief Digital Officer, GroupM
more than 35,000 employees on 35
of its largest accounts.
-Adage.com

12. “The opposite of programmatic
is not premium. It’s manual.”
k
-Marissa Mayer, CEO, Yahoo

13. Buyer to Seller Programmatic Relationships
Open Exchanges – Many:
• Bid inflation
• Quality concerns
• Competition with entire landscape
Private Exchanges – Few:
• Limited access only minimizes
competition
• Exclusiveness of invitation
questioned
Programmatic Direct – One:
• Programmatic business
relationship
• Predefined inventory, price
and priority

14. News Lifestyle
30+
PUBLISHERS
OVER
350
SITES
MARKETPLACE
INVENTORY
Career
Shop
Entertainment
Finance
Tech
Sports

15. The Publisher ‘Waterfall’
Xaxis
Marketplace
PUBLISHER AD SERVER
Other ‘Private
Marketplace’ Buyers
High Impact/Rich Ads
Guaranteed
Non-Guaranteed (Direct)
Ad Exchanges/Open Auctions
Ad Networks

17. Understanding
CDlieantat
Provider
Platform
(1st party)
(3rd 2nd party)
party)

19. It’s the Right Data Amplified
It’s not BIG data – it’s the RIGHT data
Big Data
The Right Data

21. “Ad buying isn’t a core competency for most
organizations, and neither is understanding and
implementing complicated advertising
technologies. [Taking it in-house] is a temporary
phenomenon.
Our view is after a year or two it will change. I
question whether [clients] will be able to apply
technology successfully.”
– Sir Martin Sorrell, CEO, WPP

22. It Takes an Army
18 15 41 33 45
And That’s Just in North America…
Ad Ops Product
Dev
Supply Analytics Strategy &
Investment
Trading &
Ops
= 152 people

23. Programmatic Buying isn’t Easy…
Inventory Data
People
Technology
Brand Safety
Viewable
Non-Bot
Premium
Safety
Privacy
Guarded
Matching
Engineers
Analysts
Data Scientists
Strategists
Creative
Dynamic
Storytelling
Impactful
Proprietary
Walled Gardens
Advantage
Ubiquitous

24. Xaxis saved one of its top 5
clients $7.61MM last year.

25. What is Xaxis?
World’s largest programmatic media and technology platform
DATA
Unique proprietary Xaxis Audiences free
advertisers from the clutter
EXPERTISE
Dedicated team specializing in optimization,
audience planning & analytics
TECHNOLOGY
$1bn investment in technology
including:
Market leading proprietary
DMP – Turbine
INVENTORY
Exclusive Publisher agreements
Bespoke Private Marketplaces
Direct link to all major Exchanges

26. Thank You