CAN DINOSAURS DANCE? DDS VS MEDIABANK

Backroom operations are battling it out. The stakes are high.

Agencies seeking out software systems for the management of an enterprise wide management suite are pitting Donovan Data Systems (DDS) to defend against Mediabank as smaller contenders including Strata and Harris sit it out in the bleachers. All the while, entrepreneurial entries in the form of MediaX begin nipping at all their heels.

Starcom’s move from Donovan to Mediabank likely cost them a small fortune and a major migraine, sparking rumors of a return to Donovan, while driving part of its account to nimble entrepreneurs ala MediaX.

IPG’s Mediabrands is on the fence and about to fall one way or the other as Mediabank pushes for a move to unseat Donovan. Mediabank toppled Donovan when it won the DraftFCB account, jamming its foot in the Mediabrands door.

But eating Donovan’s lunch will not be an easy feat as it represents the majority share of agency business, driving close to $200 million in revenue.

Donovan’s Achilles Heel: It’s the system of choice that everyone loves to hate and a dinosaur that cannot easily innovate.

Mediabank’s underbelly exposes hubris that allows them to believe they have sufficient resources to manage a large win.

Among the underdogs, Harris seems not to have been invited to the party while Strata was simply glossed over.

And …. An honorary mention to the new entries that seem to “get it” and are willing to match their resources to agency visions.

An upset may be close at hand, before year’s end.

IPG'S MEDIABRANDS ON THE FENCE?

At the tail end of 2008, IPG's media management unit, Mediabrands, inked a multi-year deal with Donovan Data Systems (DDS). While it is unclear how much of the IPG spending flows through DDS (IPG agencies place upwards of $25 billion in media annually) it is nonetheless the lion's share.

DDS's competitor, Mediabank, quietly shored up its digital offering and in six short months following the DDS/Mediabrands deal Mediabank signed DraftFCB for digital services. A small but key foothold at IPG.

It was a whoops! for DDS as they struggled to keep the business.

After several starts and stops in 2009, Mediabank hired former Yahoo! and Right Media exec Bill Wise as CEO this past June 2010. It proved to be a wise move as Bill's vision and ability to chart and navigate digital waters was on spot for Mediabank.

Significant strides and development of their offerings over the last eight months, folding in Audience On Demand services in DSP fashion, places Mediabank at the nexus of what is coming next.

And .... it may have panned out as rumors have surfaced concerning a move by Mediabrands to DDS's rival Mediabank. In light of DDS's reluctance to move nimbly into the digital landscape it would not, however, come as a surprise and a severe blow to DDS.

If the Mediabank/DDS contract is up at the end of this year, we may just see a new face at Mediabrands.

OMMA BEHAVIORAL - DATA POWER BOOSTERS

If you came away with anything from OMMA's Behavioral Conference on Thursday in New York, it was the notion that general agency professionals and brand marketers are simply confused by the complexity of data and analytic delivery and measurement options.

Rishad Tabaccowala, member of the management board at Vivaki, opened the session with a keynote that drove home the need for simplicity. KPIs and results are the currency utilized to judge performance. The "pipes" that target audiences, driven by data, should hide behind the walls, managed by the "plumbers" of data and analysis.

Rishad went on to offer three reasons agencies get hired .... Insights, Inspiration (as opposed to perspiration and hallucination), and Ideas.

An audience question that follows stumped the the panel on "Which Data Finds The Right Audience".... "Who can qualify the quality of third party online data?"

It's a sad commentary on our state of affairs when the data is referred to as so much snake oil.

Very much like STP's Power Booster, few understand the origination and quality of the data but tentatively accept the fact that adding layers of data segments to their targeting options (or in STP's case adding it to your tank) will somehow enhance performance and outcome.

Therein lies the problem that slows acceptance of online as a viable alternative. The industry is running ahead of itself with little regard for mapping a destination or taking the time to truly learn and educate along the way.

Matt Freeman, CEO, Mediabrand Ventures