• by Joe Mandese  @mp_joemandese, March 14, 2008

Over the past several weeks, MediaBank has been the mysterious third character in a drama unfolding in the press about the breakup between Madison Avenue's leading data processing firm, Donovan Data Systems, and one of its biggest customers, Publicis' Starcom MediaVest Group. MediaBank has been the subject of allegations, rumors and innuendo about the role it played in that breakup, as well as Donovan's charges of intellectual property theft. To clear the air, we recently asked the company's founder and CEO, Brad Keywell, a few pointed questions, and found his answers to be both unabashed and forthcoming.

Keywell makes no bones about it. He prides himself on "bringing disruptive technologies to industry," and is simply doing for Madison Avenue what his other companies, InnerWorkings and Echo Global Logistics, have done for the print sourcing and transportation industries, respectively: developing superior technology to dominate their procurement marketplaces.

MediaDailyNews: Who's behind MediaBank? Besides you, who are the investors?

Brad Keywell: MediaBank was founded by both me and Eric Lefkofsky. In addition, there are several investors in MediaBank, including some Chicago-based private-equity investors, as well as New Enterprise Associates (NEA), one of the largest technology-focused private-equity firms in the country, with $8.5 billion of capital. NEA is a strong supporter of MediaBank's vision for the future.

MDN: What's the connection between the suite of companies you and your partners have interests in--InnerWorkings, Echo.com, etc.--and MediaBank? Do they interrelate?

Keywell: The one important facet the companies share is a philosophy of technological innovation and excellence--in enabling the harnessing of data for competitive advantage. InnerWorkings was founded in 2001 by a group of individuals including Lefkofsky. In early 2005, Eric and I, along with Rich Heise, founded Echo. Obviously, we are proud of each of the companies we have created--including InnerWorkings and Echo. However, there are no shared resources between the companies, and they have always been--and continue today--to be operated completely independently. That said, the companies do have some common shareholders, directors and common investors. For example, NEA has invested substantial amounts of capital in each of InnerWorkings, Echo, and MediaBank.

MDN: Explain the Linda Wolf connection. She's the former CEO of Leo Burnett and is on the boards of both InnerWorkings and MediaBank. Coincidence?

Keywell: Our relationship with Linda Wolf began when she joined the board of directors at InnerWorkings. We have a tremendous amount of faith in her judgment and experience, and find them especially relevant to MediaBank. At the same time, it is important to note that no agency--not Publicis, or any other agency--has any equity position in MediaBank. Linda's directorship in MediaBank has no relation at all to MediaBank's business dealings with Publicis.

We are also exceptionally proud of our corporate governance. The men and women who make up our board of directors demonstrate the discipline, strength and integrity on which MediaBank is governed. MediaBank's board includes Linda Wolf, as you mentioned, and also includes Betsy Holden (former CEO of Kraft, and current senior advisor to McKinsey & Co.), John Walter (former president of AT&T, and former CEO of R.R. Donnelly), Jack Greenberg (former CEO of McDonald's, and Chairman of Western Union), and Dipak Jain (Dean of the Kellogg School of Management--Northwestern University in Evanston, Illinois). The experience and stature of our independent directors ensures that as MediaBank grows, it will do so with prudence and stability.

MDN: You've said you pride yourselves on "bringing disruptive technologies to industry." Why is that a good thing?

Keywell: We believe that the magic equation is a combination of talented people and innovative technology. In today's business environment, one without the other simply does not work. When we describe our technology as "disruptive," we are speaking to the fact that it injects a much-needed dose of flexibility, interoperability, and transparency to an industry that for decades has been dominated by a technology platform that is inflexible, closed and difficult to work with.

Wikipedia defines "disruptive technology" as technological innovation that uses a "disruptive' strategy, rather than a 'sustaining' strategy, to overturn the existing dominant technologies or status quo products in a market." We believe that those who choose the industry's legacy technology as their instrument for the future will find themselves stuck in the status quo, which will leave them vulnerable to the wave of digital media, advanced analytics, and dynamic connectivity that is defining this age of media buying. It is through our equation that MediaBank can enable media buying agencies to truly succeed, both now and in the future.

MDN: Using your other businesses as an example, what are the economics of bringing superior technology to the media procurement marketplace?

Keywell: The similarity of InnerWorkings, Echo, and MediaBank is that all seek to utilize technology to mine data and create maximum business process efficiency from that data. We are strong believers that if you do not harness every ounce of intelligence that your data offers you, you will wake up one day wondering how your competitors were able to catch up to you.

MediaBank's technology, which enables cross-platform media operations on one consolidated platform, with one consolidated database, accounting layer, and analytics engine, is unique in the media buying landscape. Those agencies that partner with MediaBank will find they have inherent advantages over those relying on older technology platforms.

MDN: You and your partners are very well-capitalized. How are you funding the expansion of MediaBank? And does your deep reservoir of capital give you a competitive advantage over other industry players?

Keywell: The fact that we are exceptionally well-capitalized demonstrates how we've been able to make such significant investments in our technology and our infrastructure. Through our people and innovative technology, we are sending an unmistakable signal to the market that we are not only here to stay, but that we will continue to get better and make investments in our technology every day. Our planned investment is substantial, and will provide products and services that I've personally heard have been on the industry's unfulfilled "wish list" for years. And yes, our passion, the talent of our 140-person (and growing) team, and our ability to invest in innovation balances that "equation" we referred to earlier--giving us a major competitive advantage over other industry players.

MDN: You bought Datatech and analytics firm Blackfoot to help jumpstart MediaBank. What's next? What other business elements do you need to realize your goals?

Keywell: While I can't speak to what acquisitions we may make, I can say that we expect acquisitions to continue to play a part of our future, as we seek to develop, in the shortest period of time, the most comprehensive, innovative technology for the media-buying industry. With regard to business elements that will complement and expedite our growth, we are endlessly passionate about three areas: 1) Technology that makes media buyers more efficient; 2) Technology that makes media buyers more intelligent; and 3) Technology that makes media buyers more capable of harnessing every ounce of their data for maximum competitive advantage.

MDN: When you began developing the concept for MediaBank, you said you initially focused on the "long tail" of the business--all the fringe and fragmented media that are being spawned by digital expansion. But once you began rolling up your sleeves, you realized there was a bigger market that needed fixing here. Explain that revelation and how you made that transition.

Keywell: That's true--our initial idea was to utilize our core strength (technology development to utilize data for competitive advantage) and apply that strength to all of the new and emerging media types--in essence, becoming a technology-enabled barometer of supply and demand in emerging media markets. But, as many people in this industry can relate to, as we dug deeper into the shortcomings of the technology platforms that supported the media-buying industry, we were shocked at what we found. We found an industry in which the dominant technology platform simply frustrated its users from easily extracting and manipulating the data that was locked in that system. At the same time, we saw a landscape in serious need of innovation and progressive thinking about how to address digital media, and about how to create a more efficient business process.

MDN: What surprises you most about the way the market has received the news about MediaBank?

Keywell: The market is just beginning to realize the power that a truly innovative technology platform can offer, and I can tell you that we are screaming from the top of the hills about how important we think it is for media buyers to have technology that can handle all media types (analog and digital) on one platform with one database, and with advanced analytics. At the same time, we are highlighting how important it is for media buyers to be able to use their technology to improve their business processes and increase efficiency, rather than be attached to a legacy technology and the laborious business process that it mandates. In addition, we are explaining to the industry how important we believe it is for media buyers to be prepared for whatever the digital future holds.

MDN: What surprises you most about the way Donovan Data Systems has reacted to MediaBank?

Keywell: While I'd rather not comment specifically on any one competitor, I can say that monopolistic conditions where there is mass reliance on old, less effective, inflexible technology are never healthy for any industry--especially one as dynamic as media buying. In virtually all other industries where mass reliance existed, typically, a lack of innovation followed. With regard to DDS itself, I am surprised by the roadblocks that SMG has had to overcome in its transition away from DDS. In all of the other industries we have been in, a software vendor would work amicably and diligently to support one of its long-standing clients--if that client chose to select another vendor. In our case, we did just that in allowing Mediacom to remain on our platform long after their transition to DDS, because DDS' system apparently could not support an application we built for one of their largest clients years ago. It is surprising to me that any industry would allow a software vendor to hold them captive. We are hopeful that steps can be taken to correct this, and we support any industry action that forces us or any of our competitors in the marketplace to allow our clients to choose any software vendor they want and have the assurance that their system transition will be smooth and unhampered.

MDN: There have been some allegations of skullduggery--specifically, that you misappropriated proprietary information from Donovan Data Systems. But you say you simply accessed information that was publicly available as part of your due diligence for building a new system. Can you be specific?

Keywell: Remember--allegations are simply that, allegations. Let me state this now, as clearly and emphatically as I can, that neither MediaBank or any of its clients, to the best of my knowledge, have ever done anything that was in any way inappropriate when it comes to the proprietary intellectual property of others. I'm not sure if I can say it any more clearly than that.

When we first launched MediaBank, we invited just about everyone that had a media procurement solution to pitch us, since at that time it was not our intention to build an order management system. Rather, our initial thought on the opportunity in this industry was to create a better source of data aggregation on supply and demand of new and emerging media types. Only when we learned how deficient most of the products in the market truly were did we become interested [in] and excited about the opportunities that existed in the order management side of the media-buying marketplace.

We understand that DDS alleges that we had some of their user manuals, and that somehow these were used by us to copy parts of their system. To begin with, user manuals are pervasive in the market--including the fact that many DDS specifications, screen shots, and operating manuals are publicly available on DDS' own Web site. But, as everyone knows, you can't look at an automotive user manual in your glove box and go out and build a car. In May 2006, we acquired Datatech, a company that began building their system in 1982 and has been competing against DDS for decades. As for our digital application, our product has been in the market since the fourth quarter of 2007. As you know, DDS announced just last week that they are hoping to release their own digital product in the next few months. Frankly, the mud-slinging going on appears to relate to one company trying to get in the way of the marketplace embracing a newer and more innovative solution, instead of relying on old, cumbersome technology that we believe has ignored the changing dynamics of the media-buying industry.

MDN: You're very open with the fact that you invited Donovan to come in and present to you when you were trying to develop a service that would rival them. Did you invite others to present to you as well?

Keywell: As mentioned previously, our initial thought on the opportunity in this industry was to create a better source of data aggregation on supply and demand of new and emerging media types. To this end, we began by inviting in several of the "usual suspects" for one-hour presentations to discuss whether their technology platforms could suit our needs on the order management side. What we found is that none of them could remotely support our vision of data-powered technology excellence. From those presentations, we learned that none of the technology solutions were anywhere close to where we thought they would be--or should be.

MDN: To give you a running start in servicing the analog part of the media-processing business, you bought an entrenched player, Datatech. There's a rumor that you also reached out to Donovan. True or false?

Keywell: We acquired Datatech, a company whose technology platform was built over a period of 26 years and incorporated virtually every operational element we needed for immediate analog media procurement. From our due diligence prior to the acquisition, as well as talking to many people in the industry, Datatech had been overwhelmingly considered the best technology in the marketplace for years. The only item Datatech lacked on the analog side was the capital and hosted infrastructure in order to deliver its technology to the industry's largest players in an "on-demand" environment. Since acquiring Datatech, we have integrated their technology into the MediaBank O|X platform, so that we now have what we believe is the industry's best analog media solution on the same database as our innovative digital media system. True cross-media operations, analytics, financials, advanced workflow tools, and more--all in one modern environment--are integrated into a single database built for the future, not anchored to the past.

As it relates to other media procurement software companies, given how well-capitalized we are, we are constantly in the market talking to any company we think could strategically benefit from our long-term vision and technological resources. As it relates to DDS specifically, again, we don't feel that it is appropriate to comment.

MDN: You've said MediaBank was designed for media buyers by media buyers? What buyers played a role in its development, and how do those designs differ from the existing suppliers in the market?

Keywell: Our digital platform is the first of its kind, and was the first to market. Our methodology was to spend time with digital media buyers across many agencies, many specific media types, and in many situations. We listened to what they needed, and what they wished for. And then we built it. The great news is that as our clients and prospects are finding out, we don't sit still--we are releasing enhanced features and functionality several times each month. As a result, what you see today continues to get better which each passing day.

MDN: Did you develop MediaBank specifically with SMG in mind? And if so, does SMG's influence in designing the system give them any proprietary advantages over any new customers that might come on board now?

Keywell: While SMG initially advised us on the digital side as to the capabilities they desired conceptually, MediaBank and MediaBank's technology are not rooted in any one agency or any one client. We have built, and will continue to expand, our solution for the entire industry. Our technology today supports not only SMG, but also parts of Interpublic, WPP, Omnicom and others. And, as I mentioned earlier, we will continue to grow not only the strength of our technology, but also the breadth of our client base.

MDN: What forms of digital media is MediaBank capable of processing? Aside from online display and rich-media ads, what can be processed right now through MediaBank? And give us the nuts and bolts of how you've solved that problem, where others are still working on them.

Keywell: Our digital system supports all interactive buy types, including display, search, rich media, video-on-demand (VOD) and mobile. Certainly, the system was designed to support display, search, rich media and VOD end-to-end, but it also offers the flexibility to handle mobile and other emerging media. Compare this against our competitors, and you will find MediaBank is in a class by itself. To complement our digital system, our analytics platform, MediaBank A|X, will process any data source including search, display, demographic data, cross-media planning data, ad server, cross-media ratings data, and more. We map data sources by channel, which removes the majority of the development efforts to load additional data sources within each channel. This comprehensive analytics platform offers a level of intelligence and insight simply unavailable with legacy technology platforms.

MDN: What future digital media platforms will be processed through MediaBank--and what do you need to do to process them?

Keywell: The MediaBank system is designed to handle all current and future emerging media, including mobile, gaming, podcasts, etc. Our platform makes it easy to bring inventory in from vendors through a variety of means, including in-system qualitative and quantitative data capture, as well as more traditional means. Through all these feeds, our system generates insertion orders, provides for agency- and client-custom approvals, and incorporates full down-stream accounting integration.

MDN: What are the main advantages and innovations that MediaBank has over existing suppliers in the advertising and media industry?

Keywell: First of all is our modern, flexible technology, which encompasses all media types on one database, with one analytics platform, and an "open" mentality that allows for seamless integration with all other systems. In other words, we have built a system that allows you to harness your data, not wonder how to get it. And, by the way, when we say "all media types," we are talking about not only television, radio, print, outdoor, and all things digital, but also direct response and emerging media--and we even have a fantastic production module. Our features include customizable digital workflow that can be modified to any agency or client process (planning, buying, trafficking, accounting, and audit and discrepancy resolution), as well as real-time buy optimization (including continuing performance feeds for each placement). Next, by having a Web services layer sit underneath our technology platform, and providing Application Programming Interfaces (APIs) to all of our modules, we invite our clients to build their own, proprietary technology off of our platform, allowing endless innovation both at the MediaBank level and at the client level. Additionally, our digital platform is uniquely flexible and "future-proof" to the evolution of digital media, thus enabling progressive agencies to anticipate client demands and meet them proactively.

Our integrated cross-media analytics solution includes customizable dashboard widgets and "dashlets" which deliver key metrics in real-time, cross channel analytics, custom [key performance indicators], multimedia correlation, and client-ready reports and analysis in a matter of keystrokes. To run reports on our system takes minutes, not overnights or weekends (as our competitors' technology requires).

I could go on and on, but let's just say that the best action somebody can take is call to us and see our solution in action. They'll realize why we're so excited about what we're doing.

MDN: You've called MediaBank an open system. Explain what you mean by that in a way that non-technical people would understand.

Keywell: To us, open means interoperable, flexible, and transparent. We believe that our clients should not only have complete and unfettered access to their data, but should also have an endless ability to use the MediaBank platform as a "starting point" for their own innovation. Our clients have ideas of proprietary applications and algorithms that are unique to them and based on their expertise. To these situations, we say "build away," while we provide the platform that allows our clients to connect things to our system, take features out of our system, or build applications on top of our systems--all for their own unique benefit.

MDN: Why did you want to get into the media industry?

Keywell: The media industry represents a very unique situation in today's world--an industry with an enormous amount of data, and rapidly emerging new types of data, with increasing transaction counts and decreasing average transaction size, in which the legacy technology providers--our main competitors--do a very poor job in enabling clients to be "great" at their jobs. In fact, we believe the legacy technology providers often act as barriers, not allowing their clients to become "great." To enter an industry with this state of affairs is a truly exceptional opportunity to make huge positive changes. While people are just starting to fully digest the opportunity that MediaBank presents, I can assure you that we are here to stay--we are in this for the long haul--and that we will continue to be pioneers in innovation as this industry evolves.

MDN: What's the biggest misnomer about MediaBank?

Keywell: Given all of the press lately, there seems to be plenty. The biggest truth that we strive to spread is that our system is better, more progressive and more flexible then the alternatives. Once people see our software, meet our people, and experience our superior customer service, they will understand why we are so enthused by what the future holds--for both us and them!