While WPP develops audience-buying tools, Omnicom CFO says the marketing services firm will work with third-party vendors instead.
As rivals build ad optimization capabilities, Omnicom Chief Financial Officer Randall Weisenburger explained why the marketing services company is opting to take another approach.
Omnicom will work with third-party vendors for so-called ad optimization services, instead of building capabilities in-house.
"We don't view ourselves as a technology platform developer," Weisenburger said in response to a question at BMO Capital Markets' Advertising and Marketing Services Conference in New York. "Technologies are changing at a fast rate. We don't want to invest a lot of our capital developing proprietary technology for clients that other people are developing."
Weisenburger did not disclose the names of vendors that Omnicom is working with for ad optimization, also known as media buying optimization. Vendors offering these services, including demand-side platforms, use audience data and other information to target online display advertisements using real-time bidding.
Several of Omnicom's rivals have developed technology in-house. The most pronounced example is WPP's Media Innovation Group, which has developed its own audience-buying platform called B3.
However, other holding company trading desks, including Vivaki Nerve Center and Razorfish's Atom Systems, are working with third parties to varying degrees. Vivaki and Razorfish are both part of Publicis.
One challenge with offering such services in-house, Weisenburger said, is that some clients might question an agency's bias for recommending an in-house service over a third-party's service. "They start questioning whether it's best or because [the agency] owns it," he said.
Revolutionize your digital marketing campaigns at ClickZ Live San Francisco (August 10-12)!
Educating marketers for over 15 years, our action-packed, educationally-focused agenda offers 9 tracks to cover every aspect of digital marketing. Join over 500 digital marketers and expert speakers from leading brands. Register today!
Anna Maria Virzi, ClickZ's executive editor from 2007 until 2012, covered Internet business and technology since 1996. She was on the launch team for Ziff Davis Media's Baseline and also worked at Forbes.com, Web Week, Internet World, and the Connecticut Post.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.