Home Agencies Omnicom Reorgs Its Programmatic Talent

Omnicom Reorgs Its Programmatic Talent

SHARE:

To centralize or not to centralize?

That is the question holding companies have wrestled with since the advent of programmatic buying a decade ago. While Publicis Media and GroupM have broken up or reassembled their trading desks, others like IPG have kept that expertise at the center.

Enter Omnicom, which said Friday it’s taking the former approach. Effective April 1, 620 specialists will move out of programmatic, search and social agency Resolution Media and data science hub Annalect and into the core agency brands: OMD, PHD and Hearts & Science.

Most of this talent was already working on client accounts at the agencies and will continue to do so closer to the rest of the team, said Scott Hagedorn, CEO of Omnicom Media Group North America.

“The [agency] brands need closer integration of these services as they have become mainstream,” he said. “It’s time for them to migrate directly into the brands.”

Annalect will continue to live on as a central group, with roughly 150 people globally that focus on product development, engineering and data science and procurement for Omni, the planning and activation platform Omnicom launched in July 2018.

Resolution will remain a standalone agency with about 80 people in the United States specializing in performance clients. But its enterprise partnership team, which negotiates deals and engineering projects with the major platforms, will report directly to Hagedorn.

Putting Annalect and Resolution talent into the agencies will hopefully facilitate a two-way conversation around product development for specific client needs. Hagedorn envisions building vertical-specific versions of Omni as well as new tools around “fringe” capabilities, like buying within the Amazon ecosystem and advanced TV.

“We want Omni for automotive, Omni for pharma,” he said. “That’s going to require a lot of dialogue between the folks developing stuff in the middle and the brands themselves.”

Moving technical talent into the agencies will also streamline client access to the group. Previously, clients often had to set up a separate meeting with an Annalect or Resolution expert to answer a technical question, like understanding the difference between the Adobe and Oracle stack, or whether Apple’s ITP initiative is causing data outages.

“Those are significant questions that a client needs an answer to now, not in two weeks,” Hagedorn said.

The reorg will also allow Omnicom’s traditional and programmatic teams to leverage the holding company’s buying clout. These days, Omnicom frequently uses traditional negotiating methods to launch upfront programmatic guaranteed deals or private marketplaces with set ceilings, floors and deal IDs at pre-negotiated rates. OMG is currently managing 50,000 deal IDs across its clients, Hagedorn said.

“Two or three years ago, I didn’t see what holding company clout would look like in an auction-based world,” he said. “We’ve built the connective tissue where we’ll negotiate for digital inventory, but then we decision on the inventory based on the audience later.”

But moving people into new organizations can be tough on talent. Omnicom will have to ensure former Annalect and Resolution employees feel connected to their colleagues, and ensure other agency talent isn’t overshadowed by their new tech-savvy team members.

“We’ve been erring on the side of over-communication for the past month or so,” Hagedorn said. “It’s not that we thought people at the [agency] brands weren’t technically literate. It’s that there’s not enough of them, and now they’ll have an army.”

Tagged in:

Must Read

Meta is giving advertisers the ability to connect their third-party analytics tools directly to its ad platform via API.

How Apparel Brand Tuckernuck Devised The 'Why' Behind Its CTV Ad Performance

Performance CTV tech company Keynes launched an AI-powered platform. Tuckernuck says it can finally “pop open the hood” and see what’s working.

Salt Lake City, Utah, U.S.A. - February 24th 2021: Martinelli Gold Medal Sparkling Blush for festive occasions and gatherings. Fermented Apple Cider from the state of California.

How Juice Brand Martinelli’s Gets To The Core Of Retail Media Incrementality

ROAS who? Martinelli’s is testing how crisp its retail media spend really is by using a new metric called incremental ROAS.

A scale with the letters AI on one side and a pencil and ruler on the other. The pencil and ruler represent the concept of measurement and precision

Measured Has A New Tool That Lets Marketers Chat With Their Incrementality Data

Media measurement provider Measured launched an MCP integration that allows brands to ask ChatGPT, Claude, Gemini and other AI platforms how their media is performing.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Roku Revamps Its Home Screen To Appease Both Consumers And Advertisers

Roku unveiled its new home screen, which includes new features designed to further personalize the home screen experience for each viewer.

Why Critics Say Email-Based IDs Don’t Work For CTV

Email targeting in CTV has a credibility problem as buyers and sellers question whether one-to-one identity even fits a channel built for broader reach.

How ‘Wrapped’ Insights Become Audience Segments

How does Spotify translate quirky Wrapped labels, like “divorced dad hipster,” into ad audiences? And is AI-generated content safe for brands? Spotify’s Global Head of Ad Product Katie English weighs in.