Dave Campanelli, Executive Vice President, Co-Chief Investment Officer, Horizon Media
Let’s activate this 19th copy of our Media Buyer of the Year with some chaplet of acumen from Warren Buffett.
Speaking about what ancestry to attending for in somebody you’re activity to hire, the Oracle of Omaha has said, “You’re attractive for three things, generally, in a person: intelligence, activity and integrity. And if they don’t accept the aftermost one, don’t alike bother with the aboriginal two.”
Buffett already added this: “I apperceive bodies who accept a lot of money … but the accuracy is that cipher in the apple loves them. … That’s the ultimate analysis of how you accept lived your life. The agitation with adulation is that you can’t buy it. … The abandoned way to get adulation is to be lovable. …”
By these measures alone, this year’s honoree as our Media Buyer of the Year, Dave Campanelli of Horizon Media, is a aural success. Talking in the accomplished several weeks to a cardinal of media sellers about Campanelli, he’s acutely one of the best likable, accepted choices we’ve fabricated in the accomplished two decades to get this award.
It becomes bound credible talking to Dave that he’s anticipation continued and adamantine about the boxy media issues of the day, and has bright cerebration responses, as if putting calm a difficult puzzle. So it’s not hasty to acquisition out that in his additional time he loves the claiming of architecture furniture, which actually involves puzzle-like abilities to allotment calm successfully.
“Four or bristles years ago we had a abode rennovation,” he says, “Going in I actually didn’t apperceive actual abundant about architecture or annihilation like that. We didn’t accept the best acquaintance with our contractor, so by the end I was finishing a lot of things myself, so I concluded up accumulating some accoutrement and some skills. That’s how I fell into it.”
His latest activity is architecture a walnut dining table. And actuality a TV guy, he says he’s absorbed on the DIY channel.“I watch aggregate on there. I actually like the determined programs. Like architecture in Alaska. Annihilation off-the-grid.”
Without added ado, here’s our account with Campanelli, 44, conducted already afresh by our Chuck Ross. Not surprisingly, in these canicule aback best of the media allocution is of added and added OTT antagonism to beeline TV, and at a time aback abstracts and metrics abuse to beat any and all media decisions, Ross and Campanelli began the account talking old school: the bulk of relationships.
Dave Campanelli: It was acutely a accord business aback I started in 1998, and still is today, admitting somewhat beneath so. We are application a lot of abstracts to acquaint our television buys. But the majority of what we are affairs is during the upfront. Now, again, abstracts has become a huge aspect of that, and a lot of the buys that we abode are either abreast by abstracts or optimized throughout the year based on data. But that’s allotment of a abundant beyond upfront agreement that is still heavily accord based. And accomplishing business with bodies over time helps acquaint the abutting accord aback you accept that base of alive relationships. In some agency it’s added important than anytime because aback you are application abstracts in television, decidedly during the upfront, it’s abundant added complicated than it acclimated to be. So to get through all the capacity of how these deals are activity to work, able relationships are an invaluable help.
TVWeek: Alike as added and added affairs becomes programmatic?
Campanelli: Beeline television will apparently never be a programmatic, automatic marketplace. Inventory is too bound for the sellers to appetite to advertise that way. For as continued as beeline television is still about — which should be a while — it’s activity to alpha with relationships. And again you’ll add the added elements in, including data.
TVWeek: You’re application a lot of abstracts now, aren’t you? The networks all assume to accept their absolute schemes to use data, such as Viacom Vantage, NBCU’s Admirers Studio, Turner Ignite to a assertive admeasurement and so on.
Campanelli: Generally, with anniversary of the networks that accept those plans, aback we accomplish upfront deals with them, a assertive allotment of our agenda will be allocated to get optimized by these affairs beyond an absolute portfolio. That’s usually based on the ambition we’re attractive to reach. The networks use their abstracts to analyze what placements beyond their portfolio in a accustomed anniversary will accord us the accomplished absorption of that audience. The abstraction actuality we will accept a abundant added targeted buy extensive our accurate consumer.
TVWeek: And now add to that the chat about OTT. From Disney Additional to Apple TV to added above OTT offerings in the advancing months, the allocution has become manic.
Campanelli: There is activity to be a aeon of time, conceivably several years, until the dust settles. Again we will see which of these casework will be successful, which are activity to go abroad or will not be big factors, afore we can accomplish any proclamations about how they will actually affect the TV infrastructure. One affair I’m appealing abiding of is that about these entities barrage this year and abutting is not necessarily what they will attending like in two to bristles years. What will their bulk to the chump advance to be? Netflix spends a lot on agreeable and keeps adopting its price. As the costs accumulate activity up for subscriptions, how will that affect subscriptions? And will any of these casework that don’t accept commercials, such as Netflix, appear up with a beneath big-ticket another that has commercials, such as Hulu does?
Generally speaking, audiences are absorbed in tiered pricing, [including] cheaper versions with commercials. Hulu has a no bartering model, but 70-80% of their sign-ups are the commercialized adaptation because it’s offered with a lower account cost.
So I can see Disney Additional and/or Netflix activity to a bartering archetypal at some point aloof because the economics ability account it.
The TV networks are acutely ambience up bright bathe lanes amid their beeline networks and their OTT extensions. So NBC and the NBC app is activity to be abstracted from their alive service, Peacock. CBS All Access is a abstracted article from CBS. That gives the networks a bottom in both worlds. And if at some point the cable array archetypal doesn’t assignment anymore and we accept to about-face to an all direct-to-consumer world, they accept the basement to do that. From the announcement perspective, as continued as we accept an article to advertise our ads to we will — if it’s a altered commitment method, we will still be there.
You ask bodies in a survey, they all say they appetite to skip commercials. But aback they accept to pay for the services, if one of the choices is a added bargain account with commercials, abounding accept that, aloof because it’s cheaper. And what is the absolute bodies accept to pay for casework afterwards commercials?
TVWeek: How does addressable announcement fit into the mix? Is it the Holy Grail? Traditional TV has been a absurd ability vehicle, which seems adverse to a targeted approach.
Campanelli: Our point of appearance is that addressable is a actual admired basic of a beyond video plan. What TV does able-bodied is ability a lot of bodies at one time, decidedly in a alive environment. That immediacy, that actual reach, has accepted out over time to be abundantly admired to advice advertisers advertise products.
Let’s booty for archetype [Horizon applicant and Warren Buffett-owned] Geico. If we can analyze addition who is in the bazaar for auto allowance appropriate now, and try and catechumen them, that would be great. However, if we accept never advertised to this actuality afore — because they accept never been in the exchange for car allowance afore — again aback we hit them in their moment of charge for allowance but they accept no above-mentioned ability or actual little ability of Geico, it’s a acceptable achievability they won’t buy Geico. Allotment of why Geico is admired aback a abeyant chump alcove that charge date is that we accept been advertisement them to Geico ads aback their birth, basically. That abiding bulk of cast acquaintance and cast acceptance — aback it is time to accomplish that accommodation — that disinterestedness the cast has congenital up is invaluable.
So addressable can actually ample a about-face metric, but it builds aloft the bulk of broad-based, broad-reach television over time.
TVWeek: Horizon is the arch absolute media agency, with a host of baddest clients, including Geico, Burger King, Corona, and Capital One. Horizon is additionally the abandoned media boutique you accept anytime formed at–you started there not too continued afterwards you accelerating college–and you’ve been there 21 years. How does actuality at an absolute boutique accord you advantages over media agencies that are allotment of abundant bigger entities that can accommodate a cardinal of media shops?
Campanelli: There are a lot of advantages to actuality independent. First, there is no Wall Street or stockholders or lath to amuse with annual numbers. Bill [Koenigsberg] is the architect and buyer and he can allow to accept a abiding vision. With that abiding eyes it allows us to accomplish abiding investments, such as we are accomplishing in the abstracts amplitude appropriate now. It allows us to booty the continued appearance on applicant relationships. We can focus on them and not what’s activity to about-face the bigger accumulation for us short-term. Instead we can focus on what is activity to accumulate our admirers annoyed and blessed and their business alive over time. In our relationships with networks and the deals we do for our clients, we accept the advantage of actuality absolute and not allotment of a beyond captivation company, area deals can become aggregate beyond three or four agencies. Networks can be assured that deals that are altered to Horizon will break altered to Horizon. Independence allows us to be added active and active in the marketplace, to advance as the exchange evolves.
TVWeek: Earlier we were talking about abstracts and how it fits into media affairs today. One of my admired questions to ask these canicule is whether we are adversity from abstracts overload. You’re accepting lots of abstracts from clients, and then, of course, there is all the clay done with data.
Campanelli: I don’t apperceive if there is too abundant data, but I would say that there is a abridgement of compassionate how best to use data. And what’s the appropriate abstracts to use? The adorableness of avant-garde data, in agreement of targeting, is that your ambition is to acquisition the best absolute ambition possible, award the abstracts that will abutment that. So you can accept the accomplished absorption of your admirers accessible in your layered TV buy. It’s adamantine to bulk out the appropriate abstracts sources to use [for that]. Quite honestly, in the TV apple best bodies are accomplished and accomplished in TV buying, not avant-garde abstracts analytics. So you accept an industry of bodies who don’t accept the accomplishments or acquaintance in the amplitude who are actuality asked to accept adequately avant-garde analytics and abstracts and targeting. That’s a huge claiming — a huge acquirements ambit for TV buyers and sellers in general.
I anticipate that’s the bigger claiming appropriate now — accepting anybody up to acceleration on this amplitude and how to use the abstracts properly. Because that’s the affair we run beyond the most. The abstraction of how article is declared to assignment sounds abundant in theory, but putting it into convenance oftentimes affectionate of avalanche apart. And aback you attending aback on it you [realize] oh, we weren’t extensive cat households for this cat aliment like we anticipation we were. But we had to archetypal 80% of the admirers to try and assumption which ones had bodies in households and we didn’t do it any added finer than throwing a bound out the window. So it’s a lot of balloon and error, a lot of allurement questions and addition out what’s alive and what isn’t.
We charge better, added compatible altitude beyond platforms. A lot of our cross-platform buys now are cobbled calm from altered sources aback you are attractive at OTT viewership and VOD set-top viewership, and accumulation with beeline and delayed beeline viewing. So we charge added compatible measurement.
The shows we are affairs are actual important — we are acrimonious accurate shows for accurate reasons. However, we do accept to axis a bit abroad from appearance specific to time specific. One of the abundant ethics of alive television is reach. Extensive a actor or added bodies with a accurate ad in a accurate appearance at a accurate time — for example, Tuesday night at 8:30. As delayed examination is a bigger and bigger allotment of what we do because it’s a bigger and bigger allotment of how bodies consume, alike if we are able to buy it, we don’t necessarily appetite to be in that [Tuesday night appearance at 8:30] thirty-seven canicule after aback the chump assuredly gets about to watching it. It’s added about impressions in a beneath aeon of time beyond programs or beyond agreeable against [being in] a accurate appearance [that is watched a cogent cardinal of canicule later]. I anticipate that’s the axis that we are activity to charge to make. Networks can still bear a cogent cardinal of impressions — beeline additional DVR additional VOD additional OTT. We’re activity to charge to re-create that adjacency by carrying those impressions in a beneath aeon of time in altered types of content, potentially, if we charge to.
TVWeek: That’s interesting. So if a appearance is on the balloon for renewal, and a cogent bulk of its examination is delayed viewing, you ability say, from an advertiser’s point of view, that you’d appetite the arrangement to alter it with a appearance that had added actual viewing.
Campanelli: Yeah. Aback you attending at the agenda behemoths out there, Google and YouTube and Facebook, they are carrying massive amounts of impressions. TV networks can bear a cogent bulk of impressions as well, but we get those impressions through the lens of a accurate appearance or accurate episode. TV networks accept to get added into the bold of carrying impressions through their agreeable in a bound bulk of time, and not necessarily anticipate about it in the aforementioned way as we accept historically. Historically we accept anticipation of it as this adventure delivered this cardinal of impressions. We charge to move added into a amplitude area we anticipate about ABC carrying a actor impressions on Wednesday night. And that ability be through a beeline atom on ‘Modern Family,’ additional 500,000 impressions digitally on ‘Modern Family’ from earlier episodes. In added words, some aggregate of their assets. That’s the approaching of area we charge to go to advance the value.
TVWeek: Can you allocution a little about agency-client transparency?
Campanelli: Accuracy ability be THE best important affair to us. Aggregate we do is absolutely cellophane at all times with our clients. And while I brainstorm added media agencies ability say that, it’s actual abundant the case for us. If you attending at our applicant agenda and the constancy of admirers we’ve had, a big acumen why is our accuracy with them. How abundant they assurance us is why they break so long, which is adequately altered in the business.
TVWeek: Finally, what keeps you up at night, businesswise?
Campanelli: The bigger affair is authoritative abiding that we are accomplishing our best assignment for our admirers every distinct day. That’s alarmingly important, and it’s acceptable added and added arduous with the accepted accompaniment of beeline television and how bodies are arresting this on-demand world. What does that beggarly for ratings? And how can we abide to advice our admirers drive their business through video aback it’s alteration so dramatically?
On the abstracts side, there’s a blitz to use abstracts and what keeps me up about that is authoritative abiding we are accomplishing that right. If that agency proceeding added carefully than our competitors to accomplish abiding we are accomplishing it accurately — so we are not crumbling our clients’ money — that’s apparently the bigger thing. We see a new angle from some new abstracts artefact or abstracts befalling about every day. The ambush is addition out which ones are valuable, and how do you assassinate them properly?
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