Publicis Groupe Unveils New Digital-Ad System

Published on: 2015-02-05

According to the Wall Street Journal:
The system connects Publicis's media-buying agencies with the ad space sold by the Web giants. Publicis's new tool is powered by Google's ad-serving technology. It is the first initiative to be rolled out by the VivaKi Nerve Center, a new Publicis unit focused on creating ad technologies to be used by all Publicis agencies. Curt Hecht, formerly chief digital officer of GM Planworks, a unit of media-buying firm Starcom MediaVest, will lead the VivaKi Nerve Center.


VivaKi Nerve Center is part of a broader Publicis initiative called VivaKi that combines the digital assets of all its media-buying agencies with Digitas, the digital-marketing concern it acquired last year for $1.6 billion. Publicis says the new structure gives it media-buying clout and will help it create new proprietary technologies.
Our take:

Publicis, along with conglomerates Omnicom and WPP, continue to look for ways to maintain their revenues and margins while the ad world changes.  While spending on TV commercials -- still the #1 target for ad dollars -- continues to increase, its overall percentage of the pie has shrunk.  While the Internet has been the largest beneficiary, new media like mobile screens and out-of-home digital signs, have made spending that extra money more difficult.  Additionally, given the growth of these new fields, as well as the strong growth of sleeper media like traditional out-of-home, we can understand why Publicis would try to consoloidate the efforts of some of their member companies to try and create a cohesive and streamlined point of interaction within the group.

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