Jul 4, 2016

Danish agency uses AI to make advertising (media) decisions

There has to be something about Denmark and Mathematics. If you like football (not "handegg" like they play in the US), the name "Midtjylland" probably rings a bell. Yes, that Danish club that made it to the group stage of the UEFA Champions League. Its owner, Matthew Benham, made his fortune with mathematical models predicting the results of football matches. He started to manage the club on statistical models and was vastly successful, winning the league.

Now we hear of Blackwood Seven, a media agency founded in 2013 in Copenhagen. It is not really a media agency, though: Thy consider themselves a software and analytics platform, charging their clients a software fee, no kickbacks, No media commissions, no gut feelings: You feed the algorithm with your KPI's and budget, and the thingy uses predictive modeling to try and determine the best media mix incl. TV, OOH, and of course digital. This approach won them the huge Volkswagen account in Germany, and it threatens the whole way media agencies make their business. Not only the kickbacks and the special rates which are often not disclosed to clients - meaning companies like Blackwood Seven make the whole market more transparent - but also when it comes to media planning decisions. When computers beat the best Chess (long time ago) and Go (recently) players in the world, why shouldn't they, fed with Big Data, beat your media buyer, who most probably isn't the best in the world?

More about Midtjylland:
"How data, not people, call the shots in Denmark"
https://decorrespondent.nl/2607/How-data-not-people-call-the-shots-in-Denmark/230219386155-d2948861

https://www.theguardian.com/football/2015/jul/27/how-fc-midtjylland-analytical-route-champions-league-brentford-matthew-benham

German: http://www.11freunde.de/artikel/midtjyllands-revolution

More about Blackwood Seven:
https://blackwoodseven.com/

http://www.businessinsider.de/blackwood-seven-launches-in-the-us-2016-6?r=US&IR=T