February 29, 2016

Economies of Scope: How GroupM UK Gives Clients Digital Advantage

GroupM is the world’s leading Media Investment Management group. We are well known for our scale, and the value we deliver to clients through economies of scale. What is less heralded is the ‘economies of scope’ that our scale enables. These economies of scope yield advantage to our clients through 1) access to more types of media, data and technology and 2) expertise available through greater skills, knowledge and exposure to information. We apply leadership, inventiveness and scale to drive progress and deliver results for our clients, partners and our people. Moreover, thanks to our in-house expertise in building and operating advertising technology, we have unique insight into the industry, enabling us to better evaluate ad tech and media products on behalf of our agencies & clients.

This determination and vision to deliver game changing solutions is realised in the UK through our approach to Digital Media Investment. In the UK we take a unique approach – we structure our business around three key pillars – Media, Proprietary Media Products and Connect.

Our Media Team are specialists in using tech & data to analyse, buy and evaluate what media to secure from our publisher partners on behalf of our agencies and clients. Using market leading technology, and leveraging our market leading media buying scale, they secure direct access to the best quality and best value media in the market for our clients.

In addition, we have built a range of diverse Proprietary Media Products to provide our clients with choice and specialist expertise in how to best hit their business goals. Xaxis is an award winning audience buying company, Light Reaction is a new comer to the world of performance mobile, while plista offers UK clients an additional choice of native advertising solutions. These proprietary media products have been built through investment in technology and expertise.

All of these products are powered by data, enabling our clients find valuable audiences and create valuable outcomes. Our unrivalled media buying scales gives us the ability to create and apply media data on behalf of our clients. We have developed unique data evaluation techniques to help our clients understand the true value of different data sets, and optimise their media investment.

GroupM Connect was created in May 2015 to pull together and organise existing local, regional and global digital resources and specialist business units in order to fully realise the economies of scope and scale that gives GroupM clients their advantage. By consolidating and coordinating our approach to technology and data through GroupM Connect, we bring together specialists across technology, media, data and operations to foster ideas, collaboration and innovation.

GroupM Connect in the UK currently includes the Programmatic Buying Unit (PBU) and our proprietary CAPPS dashboard. The PBU is our centre of excellence in programmatic buying and operations, allowing clients to access the highest quality and best value media, the most sophisticated technology, and the greatest choice of media products in the market.

Indeed, the choice of media products available to clients is not limited to what is available on the open market, but also includes media products that GroupM/WPP have created, leveraging our position to deliver highly advantageous proprietary media products such Xaxis, Plista, Light Reaction and Videology.

The PBU collaborate with their agency colleagues using CAPPS, our proprietary evaluation and optimisation platform. CAPPS enables agencies and clients to analyse all the ‘meta-variables’, ensuring they’re making the best choices for their business objectives.

Through implementing the Connect approach in the UK, we are set-up to succeed amongst the vast scope and complexities of the digital marketing ecosystem. GroupM Connect offers clients choice, value and ease of access to the best the market has to offer, allied with the technology and tools to objectively analyse activity and ensure they’re making the best choices.

Having advanced how we operate, GroupM can offer clients even greater advantage. All thanks to our economies of scope as well as scale.


GroupM

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