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What the agentic AI era means for ad agencies, with Omnicom’s Jonathan Nelson - adtechsolutions

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What the agentic AI era means for ad agencies, with Omnicom’s Jonathan Nelson


Omnicom Group’s expected acquisition of Interpublic Group seems especially timely in retrospect at last week’s Consumer Electronics Show in Las Vegas.

The main point of discussion among the brand and agency managers present was the onset of the so-called the agentic era of artificial intelligencein which AI tools handle multi-step tasks for humans, such as booking a complete travel itinerary – or writing an assignment for a client. At this time, data will be even more expensive than it is today

“If you’re thinking about acquiring IPG, we’ll have a broader platform to do things. We’re going to have the broadest buy-side data set anywhere in the world and more expertise, more clients,” Jonathan Nelson, CEO of the digital arm of holding agency Omnicom Digital, said in the latest Digiday Podcast, which was recorded in person at CES.

The combined company will also have Omni AI, a product that Omnicom is developing to bring together various underlying large language models. “We’re just putting it on the desktop of every employee at Omnicom,” Nelson said.

Which brings us to another aspect of how AI will affect agency business. As agencies effectively outsource tasks to AI tools, the traditional agency compensation model – in which agencies are paid based on the time it takes to complete client projects – will come under pressure. Here again, Omnicom is counting on a combination with IPG and the corresponding data set – as with its previous acquisition of the trading platform Flywheel – to adopt a model in which client fees are dependent on the results of its work rather than the time it takes to complete that work.

“Here we are sitting on this massive data set. It comes together through audience, activation, results. It has a purpose that goes towards rewarding results,” Nelson said.

Here are some highlights from the conversation, edited for length and clarity.

Data backup after IPG

We are now sitting on what is the biggest, and arguably the best, gold standard of audience data at Acxiom. We have Omni, which is our media orchestration platform. It sits inside Omni, sitting on tens of petabytes of behavioral data about stock prices. And then connect it to results, connect it to commerce, connect it to the Flywheel Commerce Cloud, which itself has tens of petabytes of data.

General AI

Our model has always been to create very, very open systems like Omni. This is an extension; it’s Omni AI. So we give everyone most of the models that we think are suitable for production, and in the back office we’re testing probably 15 to 20 models at any given time. Maybe 10 of them are on the desktop.

WTF is Agent AI?

Let’s say you’re booking plane tickets. [The AI agent] he knows I like to fly business class, aisle seat, I don’t like red eye, I like to order a certain type of food. Here is my frequent flyer number; book your ticket. Instead of doing each one manually, the agent will remember what you like and do it for you.

SEO for AI agents

SEO has always been basically marketing based on an algorithm in Google trying to get your content to rank well. We were basically launching a robot version. The idea was that you weren’t actually talking to someone directly. You talked to an intermediary, which was a computer, which in turn talked to the consumer. I think you will see the same idea times a trillion.

https://digiday.com/?p=565299



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