Commentary

The New 80/20 Rule: It May Be 50/50

That's been the fundamental debate taking place at OMMA Ad Nets in Los Angeles this morning.

During his opening keynote, MDC's Brandon Berger seemed to suggest that the business was moving to a point where 80% of online media buys will be based on automated demand-side platforms, and that only 20% -- the most premium, contextual part of the buys -- are done on a high-touch, human, direct sales, and highly contextualized basis. You know, the way media has primarily been bought and sold for the past 100 years.

Others aren't so sanguine.

Agency Roundtable moderator Corey Treffletti, of Catalyst:SF, said he always felt that the advertising business was the "perfect blend of art and science."

Dave Martin, the media chief at Ignited, and one of his panelists, seemed to agree, suggesting that the right balance may ultimately be more of a "50/50" proposition.

The exact ratio, speakers seemed to suggest, would depend on the brand, its goals, and the kind of media they are buying to reach the audiences they are targeting.

In other words, it's going to be the same as it's always been.

1 comment about "The New 80/20 Rule: It May Be 50/50".
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  1. Steven Duque from Jack Morton Worldwide, July 20, 2010 at 8:42 a.m.

    While I actually now work at a non-traditional, somewhat traditional agency, it amazed me (as I was working as an intern at a targeted ad network) that more media buyers didn't see the rationality of using highly targeted, specific online buys across networks that employed ways of reaching consumers that are enabled only through modern technology. Instead, it seemed, buyers bought what they were used to -- for example, buying vertical-targeted online buys versus psychographic-targeted online buys (which have only recently been enabled through complex algorithms).

    Granted, the algorithms are perhaps not quite perfect, but it certainly makes better use of the long tail of the internet, which contextual buys don't (what's to guarantee that someone will actually see that ad on the side of an obscure article, or if they do, it will be relevant to them).

    In a business entrenched in tradition and past customs, I think marketing, as a practice, needs to adapt better to the times. Hell, so much money is still spent on traditional advertising in traditional media, when, in actuality, more people are spending time online and are more wary than ever of non-authentic advertising experiences.

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Joe Mandese is the Editor in Chief of MediaPost. You can reach Joe at joe@mediapost.com.

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