{"id":1564,"date":"2011-01-15T09:15:00","date_gmt":"2011-01-15T09:15:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/scott-golas_150111\/"},"modified":"2011-01-15T09:15:00","modified_gmt":"2011-01-15T09:15:00","slug":"scott-golas_150111","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/scott-golas_150111\/","title":{"rendered":"Scott Golas, MadMan of digital media outsourcing"},"content":{"rendered":"

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Ever wonder where those banners and pop-up ads you see as you surf the internet come from? We did, too, until we met Scott Golas, VP at Centro and Transis MediaOps<\/a><\/strong>, which serves up millions of ad impressions every day.<\/strong><\/p>\n

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\"Scott<\/a><\/p>\n

Scott Golas, VP at Centro, Madman of Outsourcing<\/p>\n<\/div>\n

Scott has developed a unique reputation in the sourcing industry over the years, having been a practice and strategy leader in his earlier career with the likes of PwC, Aon Consulting and, more recently, Booz Allen Hamilton. Hence, it is no surprise to us that he is now helping take the world of online advertising into smartly sourced business models.<\/p>\n

What’s caught our attention with Centro<\/a>, has been the firm’s\u00a0creation of Transis, a self-described “digital platform surrounded by services”, which forms the centerpiece of a revolutionary new outsourcing service for ad agencies’ online media functions. \u00a0Transis essentially streamlines the process of planning, negotiating, trafficking and billing so agencies can devote more resources to strategic thinking<\/em> for their clients.<\/p>\n

Centro is now taking the function of advertising-process sourcing to an entirely new level with a new managed services offering, called MediaOps, that will enable advertisers to outsource their entire digital media operations, which are typically onerous to run, and complex to get right. \u00a0This will allow the ad agencies to focus their talents on creative and targeted ad campaign management.<\/p>\n

HfS Research’s Phil Fersht and Mark Reed-Edwards had the chance to catch up with Scott recently. Rather than diving right in to a discussion of Centro, we were interested in learning how Scott got where he is…<\/p>\n

Scott Golas, MadMan of Outsourcing<\/strong><\/span><\/p>\n

HfS Research: <\/strong>Scott\u00a0Golas, good morning to you and thank you very much for spending time with us today. Before we dive into talking about Centro and the work you\u2019re doing there, you\u2019ve had a very colorful career, Scott. You\u2019ve worked for numerous different companies. Can you talk a little bit about how you got to where you are today?<\/p>\n

Scott Golas:<\/strong> Sure. I won\u2019t go back to the very beginning; you probably don\u2019t have enough tape on your recorder. I began a consulting career prior to Y2K with PwC out on the West Coast around HR transformations and outsourcing large system implementation. I spent most of 2000 after making a foray into the dot-com land bubble with a VC incubator here in Chicago called divine Interventures. For the remainder of the decade, I was either with Aon which is a large insurance brokerage, consulting, and outsourcing firm bringing their offering to market or with an analyst researcher consulting firm. I landed here at Centro in early 2008 and that was really\u2014as most good job interviews or good job offers come\u2014over cocktails at a restaurant. One thing led to another and I joined Centro several months later.<\/p>\n

HfS Research: <\/strong> Centro offers some proprietary technology in the media business. Can you tell us a little bit in broad terms what it is Centro does and what\u2019s the core value proposition of the business?<\/p>\n

Golas: <\/strong>Yeah, I\u2019ll try not to use acronyms or specific industry technology, but you can think of Centro as basically an operations service provider to agencies, and occasionally directly with brands. It\u2019s all around digital advertising.\u00a0Anything from the pop-up or banner you see on your laptop to digital out of home (DOOH) to widget that scroll at the bottom of your mobile phone. Anything related to digital. We don\u2019t currently do anything in traditional media, TV, radio, or print. At the end of the day, we facilitate massive amounts of transactions (from concept to cash) between advertisers and publishers.<\/p>\n

In this case the publishers are online publishers. Because of the complexity of executing digital, it\u2019s very difficult for agencies and brands to do that efficiently. If you think of an ad that you see for vodka or something like that, that same ad in print is going to be the same ad whether it\u2019s in Forbes, Sports Illustrated, or Fortune. That same ad digitally, if you were to place that on 20 different publisher sites could require 20 different versions depending on the size of the ad, where it was placed, where it fits in the publisher\u2019s rotations and on and on. Digital advertising is much more complex that traditional.<\/p>\n

There was a study done not too long ago by the AAAA (American Association of Advertising Agencies) that said that executing digital advertising is three times more difficult than any traditional media. So it\u2019s complicated and expensive to do. The buys are typically smaller and we help advertisers and agencies do that much more efficiently.<\/p>\n

HfS Research: <\/strong>So MediaOps is almost like\u2014in simplistic terms, almost like a human platform for digital media?<\/p>\n

Golas: <\/strong>That is probably an easy way to explain it, yeah. It\u2019s a digital platform surrounded by services. From one end of the spectrum you can\u2014as an agency, do it all yourself, research, plan, buy, etc\u2026 with the publishing community without our involvement, just by utilizing Transis, or we can do it all for you, via Centro Media Service. The new offering, MediaOps, is a hybrid, once you have planned and bought advertising using Transis we\u2019ll help execute, optimize, bill, and collect.<\/p>\n

HfS Research: <\/strong>So if I\u2019m trying to sell a product and I want to maximize awareness in advertising through the internet, if I were to use traditional means it would go to media buying agencies or an ad agency. Can you just talk about how much more cost effective and how much\u2014how different it would be leveraging your platform versus a traditional model?<\/p>\n

Golas: <\/strong>I guess the biggest distinction is that we focus on the entire spectrum of the advertising continuum, including the mid- to long-tail of the advertising world. So if you just want to buy a network, for example Yahoo or something that\u2019s pretty easy for you as the agency media planner buyer to do, you can do that without us. With most networks, you\u2019re not really sure where your ad is going to end up or when it\u2019s going to run but it will be cheap and you\u2019ll get the impressions (aka volume) that you\u2019re looking for. However if you\u2019re trying to target buyers, if you want to reach 18-34 year old males who bought a Chevy truck in the last year and eat pizza, in certain geographies\u2014you\u2019re going to have difficulty doing that as a media planner buyer. It\u2019s especially difficult to do that for many clients in multiple markets with varying launch dates. This industry still relies heavily on email, faxes, and spreadsheets. If you try and do that with a few publishers you might be able to do that. You\u2019re going to have to negotiate rates, you\u2019re entering into a contract, and you exchange digital assets. Now if you extrapolate our example and want to target the example we just talked about but need to do it nationwide with 30 publishers\u2026you would be hard pressed to do that. That\u2019s where we come in and we help out.<\/p>\n

HfS Research: <\/strong>How typically do you support clients when they engage with you and your technology platform (Transis)?\u00a0Do you generally provide them with round the clock or is it very much the client has to figure it out for themselves? How does that work?<\/p>\n

Golas: <\/strong>It\u2019s a fully supported model.\u00a0It\u2019s a SaaS-based platform.\u00a0We\u2019ll go out on site and sit with your media planning and buying team for as long as it takes them.\u00a0We transition them off their spreadsheets, faxes, and paper intensive processes.\u00a0We\u2019ll upload all their contacts that are sitting in their Outlook databases. We\u2019ll spend days there or a week, whatever it takes to build a plan, get them comfortable with Transis, and eventually wean them off that until they\u2019re more comfortable with it. You find the early adopters within an organization and work with them and they\u2019re the evangelist for the new technology and services.<\/p>\n

HfS Research: <\/strong>Okay, so is the idea eventually to have the media buyers access the SaaS platform (Transis) directly, with a license model, and then they essentially get what they need. Or is this normally like a custom approach? How is that model going to work in terms of how the use it on a day to day basis?<\/p>\n

Golas: <\/strong>The technology that we launched in 2010 is in adoption by over 50 agencies right now. It\u2019s the initial the beta version of the product. So we\u2019re working very collaboratively to address any kinks and bugs. Right now Centro is involved in about 1 percent of all the digital transactions that happen in the US, that has historically been done through our full service model. We still think there\u2019s a huge marketplace with that other 99 percent of the pie that we can help agencies research, plan, buy, and execute digital. Whether it is completely self-sufficient using the Transis technology or the hybrid model.<\/p>\n

HfS Research: <\/strong>Scott, that 1% is not an insignificant number, is it?<\/p>\n

Golas: <\/strong>No, it\u2019s a huge dollar amount. There\u2019s a huge advertising market and it\u2019s coming at an ever increasing rate from traditional media to the on-line world. It doesn\u2019t matter what analyst or research report you read it\u2019s about a 90\/10 split right now between traditional and digital. The gap between traditional and digital will close at an ever increasing pace.<\/p>\n

HfS Research: <\/strong>Scott, what\u2019s your biggest competition out there? Is it DIY, or are there other agencies doing this?<\/p>\n

Golas: <\/strong>We\u2019ve got a couple. When I say traditional business, it\u2019s not like we\u2019ve been around as long as Ford or GM. We just celebrated our ninth anniversary, so we haven\u2019t been around that long. Our traditional business is that model I mentioned before; working with agencies who are our primary customers\u2014and hammering out everything once they complete the creative.<\/p>\n

Our biggest external competitors\u2014we\u2019re about ten times their size. For the sake of this conversation, a formidable competitor would be Cox Cross Media coming more so from the traditional world than digital. But your comment at the end is on target: our main competition is agencies wanting to do it themselves.<\/p>\n

Assuming that they\u2019re even doing digital, and it\u2019s mind boggling how many agencies don\u2019t offer that now, simply because it\u2019s too difficult to do. As you can imagine, most agencies began with traditional roots, and they\u2019re migrating over to learn the digital world. But they were hit hard during the recession we\u2019re coming out of, and budgetary cutbacks, and all the new channels they have to learn, they need help figuring it out so they come to us.<\/p>\n

HfS Research: <\/strong>So when you deal directly with a company do you also help them find people to do creative or will you take what another agency has created?<\/p>\n

Golas: <\/strong>If it\u2019s a brand directly, the creative work is more so cleaning it up so it works on all the different ad services and technologies on the publisher sites. We\u2019ll get it, we\u2019ll QA it, we\u2019ll check it, we\u2019ll make sure before we load it up, before the campaign is scheduled to go live, that it actually works on the publisher\u2019s site. A lot of our creative work there is fixing it to match standard ad units and sizes. We do work with a lot of smaller and regional agencies that don\u2019t have the creative capabilities, and we help them out as requested.<\/p>\n

HfS Research: <\/strong>Okay. How is this platform going to change the traditional advertising model scope? Obviously it\u2019s bringing technology and capability into play, but do you think this could eventually start to cut out the middle man and start so you could just work directly with the corporate buyers?<\/p>\n

Golas: <\/strong>Here\u2019s our hope: We\u2019re big fans of advertising in general online and the creative world and what we think has sort of drained out of advertising in the last couple years is that creativity. We hope that by peeling off all the commoditized, very high transactional work that agencies spend time doing, they\u2019ll be able to focus more on what their clients are trying to accomplish and build very cool, creative ads. By working with us, they enhance their capability to find the buyers of their products and have a lot more time to devote working on this strategy and creative with their clients. It\u2019s not an area that we want to play in to be frankly honest with you. We know we do what we do really well and that\u2019s operations and execution. Our bailiwick is anything from post creative to collection. Anything before that is the purview of an agency.<\/p>\n

HfS Research: <\/strong>In terms of a lot of the broader outsourcing industry I\u2019m thinking of here, you know I\u2019m thinking of companies like Accenture or Infosys who invest a lot of money in their own\u2014in their own sort of digital content and support services for clients, do you actually think that they might become a future channel for a company like Centro as clients need to get more savvy just around traffic on internet, understanding how to maximize awareness of products and things? Do you think that this at all is going to become bigger than just intelligence for placing advertising but something that can be used more broadly in terms of marketing for clients?<\/p>\n

Golas: <\/strong>I would think after a period of time if you look through a genesis of most of outsourcing products or solutions, you know someone is going to make a foray into this arena and prove it can be done really well. It\u2019s usually someone who comes from a strong operational background and marries that up with technology that\u2019s been accelerated or that is going to garner attention. It\u2019s either going to garner attention from the large consulting firms, existing outsourcers, or an existing technology company in the digital landscape who have a lot riding on this, like the Google\u2019s of the world or Yahoo or Microsoft. They all have huge vested interests in search, display, and digital online. If they can make the dollars flow online, which is what we do, I would assume that would be attractive.<\/p>\n

HfS Research: <\/strong>How can people actually leverage a tool like this to help them in very quick terms understand how to maximize their digital presence?<\/p>\n

Golas: <\/strong>I think one thing to note about Centro\u2014and Transis, which is the name of the technology\u2014is that we\u2019re agnostic. Compared to some of the other ad server or technologies that are out there I can think of\u2014let\u2019s use the biggest one: Google\u2019s purchase of DoubleClick and their\u00a0ad server a few years ago. There\u2019s a pretty violent reaction from agencies to put their<\/span> data and all their information on the DoubleClick ad server\u2014just a fear of what Google could do with it. Likewise you hear a lot about demand-side platforms (DSP) and networks. Those are all items that are, I won\u2019t say proprietary, but generally a demand-side platform is only as good as the access to inventory that you have. A DSP by nature is not going to get every publisher on a buying platform. They\u2019re just not, well, one, physically able to do it and publishers are not going to give up that control. Where we fit in is\u2014we don\u2019t care. We plug into any of the back office applications that an agency or publisher works with.<\/p>\n

Our SaaS tool Transis sits on the desktops of thousands of publishers right now to help manage these transactions. So if you\u2019re an advertiser worried about rationalizing numbers between ad servers it is a huge task. But that\u2019s how people get paid nowadays. You know, we take that pain out of the process and we try to make it work for both sides. We\u2019ll rationalize the numbers between different servers and technologies so people feel comfortable about getting what they paid for and not over paying.<\/p>\n

HfS Research: <\/strong>Okay, that\u2019s interesting. So in terms of how the outsourcing model is going to work or where you think it\u2019s going to play out in the medium term, do you think it\u2019s mainly going to be a product which is going to be a product leveraged by the media agencies and clients will still go to the media agencies and the media agencies will talk with Centro or do you think it\u2019s going to be a mixed model where you\u2019ll have some clients directly with the buyers and others directly with the media agencies? Have you nailed down that strategy yet?<\/p>\n

Golas: <\/strong>I haven\u2019t nailed it down. I mean, you hit on really the two major components. The outsourcing solution that we\u2019re bringing to market is called MediaOps and we have clients right now in both of those models so\u2014we have a couple retailers that have Transis on their desktop and we\u2019re handling\u00a0the execution and likewise we\u2019re working with agencies directly. So the plan as it looks right now is an agency (or brand) utilizing Transis will do all their research, planning, negotiating, and buying. Once an agency executes a contract (insertion order) with a publisher they will hand it off to us and we\u2019ll take the creative assets and pretty much run it all the way through to billing and reconciliation.<\/p>\n

HfS Research: <\/strong>Okay. When you look at the growth of the broader BPO market it\u2019s interesting when you look at companies like Aditya Birla Minacs, for example, who do a lot of marketing operations already for some global clients. For example, they work with Apple on distributing iPods through certain networks. I can think of other service providers that are getting intimately involved in the marketing process. Do you think that could be a future channel as well? As these companies get more involved with their clients marketing process to start offering the management of your platform through that channel?<\/p>\n

Golas: <\/strong>Yeah, I think that is a very good suggestion. One that we have frequent discussions about on where we should go\u2014whether it\u2019s new technologies to pursue or partner up with or new geographies to go into. This industry is the most dynamic one I\u2019ve been involved in. In the near term it\u2019s really focusing our attention on our full service platform, or Transis (self-service SaaS solution), or the MediaOps service. Getting them up, getting them ready, making sure we\u2019re delivering on what we\u2019re doing and now expanding the access to technologies or geographies. Both Transis and MediaOps are less than a year old. We want to make sure that we have them fully operational and that we\u2019re doing what we\u2019ve committed to before we get over our ski tips.<\/p>\n

It\u2019s an excellent suggestion, Phil, one that I\u2019ve seen up on white board amongst many others. But we want to just stay focused though.<\/p>\n

HfS Research: <\/strong>Okay. Where do you see the biggest growth potential in this short medium term for the company in terms of services versus the software based solution? I mean I\u2019ll give you an analogy here of a couple of companies who did sales incentive management solutions for sales folks. There is one company called Callidus and another company and they\u2019re called Cipher and it was interesting because Callidus decided they were going to do the one to many model and sell the product through IBM and they\u2019d sell it at like five cents on the dollar and go purely for a licensed sale and have IBM manage all the clients and services rendered around that. Whereas this other company they realized that something like sales incentive management wasn\u2019t something that you could put entirely in a software package without having some element of semi-customization to the client\u2019s needs. They started to build like a support center with about 200 staff in it where they could actually support clients on a kind of subscription model as they leveraged the package. It\u2019s interesting to see how both companies are growing in terms of revenues. Do you think that you\u2019ll be moving more down the line of having a sort of services layer that sort of supports the products than just going straight for licensed sales down the road?<\/p>\n

Golas: <\/strong>Right now I believe the later model you described is what we\u2019re pursuing right now. I want to maintain ownership over the technology; we\u2019ve got a large development staff here in Chicago. By nature of our agile development methodology, we roll out new product features every two weeks. So Transis is very dynamic, and we can adapt to handling changes being requested by clients, we can fix things very quickly. We\u2019ll be out in the market really soon. There will be a dedicated software sales force and support organization and also someone selling outsourced services in the support organization.<\/p>\n

HfS Research: <\/strong>This has been a fascinating story to hear this unfold and to hear a company that is moving into a broader sort of sourcing strategy with its technology. I mean, for you having spent so many years of your career in the traditional outsourcing business, having been out of it for a while would you ever want to go back to it?<\/p>\n

Golas: <\/strong>I\u2019m jumping back in with both feet. I think, unfortunately, outsourcing gets a bad rap at times. People automatically equate it with offshoring, they equate it with layoffs, which is just unfortunately a bad rap for outsourcing guys. I think it\u2019s valuable to us look at how outsourcing has been around organizations back to the early days of payroll outsourcing. I\u2019d be hard pressed to find an organization that doesn\u2019t outsource some component of their operation. I think it\u2019s just the next evolution. The advertising world has been a little slow to jump on the bandwagon but we know that they\u2019ve outsourced IT operations, and some finance operations. So this is a huge component of their business. It\u2019s a component that they frankly, if you could talk to anyone over a drink one night, they\u2019ll tell you that they hate doing. They tell you that they love doing strategy and working with the clients. They love building creative\u2014and solving problems for them, you know\u2014how to get products off the shelf. And what we do is take all that operational, highly transactional, high volume work off their plate so they can focus on doing it.<\/p>\n

It sounds repetitive or it sounds like it\u2019s probably a mantra you\u2019ve heard from other outsourcers, but that\u2019s sort of the nature of the beast.<\/p>\n

HfS Research: <\/strong>It\u2019s almost comparable to what we\u2019ve seen going on in the legal profession for the last couple of years with legal outsource processing. Where a lot of these little LPO firms have popped up which take on a lot of the administrative work. They can do a lot of discovery work, a lot of the really time consuming administrative tasks, and\u2014which allows lawyers to spend more time with their clients and less time dealing with trivia so the client gets the benefit as well as the lawyer.<\/p>\n

HfS Research: <\/strong>It\u2019s interesting to hear these types of models developing in general and it\u2019s great to hear the story that you\u2019ve come out with so would you ever go back to the world of HR outsourcing?<\/p>\n

Golas: <\/strong>Typically most companies have no idea where that money\u2019s going, meaning their investment in human capital. So anything you can do to peel away the administrative transaction components of work and allow people to focus on what they\u2019re coming to work to do, not HR\u2014HR as the work that they\u2019re involved in and HR as the functions. It typically comes with newer technology, newer programs, and access to people who are leaders in their areas of business. They are staying abreast of changes and new ideas and they know what\u2019s going on and they can bring new plan designs and new technologies that you wouldn\u2019t have access to. I\u2019d hop back in it, sure. I still maintain that role and responsibility here at Centro. It\u2019s one of our differentiators we believe in the marketplace, our focus on raving fan service is what we\u2019re known for. We have great people, highly motivated, supported with some pretty bad ass technology. I think we\u2019re going to be hard to beat.<\/p>\n

HfS Research: <\/strong>Okay and one final question before we wind this up. If you could have your career all over again what would you do differently? Or would you do anything differently?<\/p>\n

Golas: <\/strong>I think there\u2019s very little I would do differently. I would have probably stayed working at the Grapevine Lounge, my first night there the Rolling Stones showed up after having played a concert downtown in Soldier Field (Chicago) and did their final set at 3:00 in the morning. Unfortunately I left two days later to take my first union job in the supermarket industry. So that sounds like a pretty cool place to hang out but I\u2019m pretty happy in general. And I\u2019ve learned a hell of a lot.<\/p>\n

HfS Research: <\/strong>It\u2019s definitely a matter of doing what you do best\u2014and ad operations is not what agencies do best so it just seems to be an idea whose time has come.<\/p>\n

Golas: <\/strong>There was a recent article in Forbes that I remember one interviewee saying the agency of the future\u2019s is going to be ten really cool creative people, a lot of technology and they\u2019re going to outsource everything else.<\/p>\n

Our job is to help agencies be successful and I\u2019m sort of paraphrasing our mission. But the way we can do that is to take what they would consider mundane and monotonous, transactional work off their plate. That makes us sound kind of masochistic but that\u2019s what we do. We love it. Those are problems we love to solve and we solve it with great process and cool technology and just a great team here.<\/p>\n

HfS Research: <\/strong> Scott – it’s been great catching up after all these years, and seeing you \u00a0having such an impact on your industry with your experience of the sourcing world. \u00a0HfS readers will surely be intrigued with all the great work Centro is doing.<\/p>\n

Scot Golas (picture above) leads the workforce development, administration, real estate and several business development efforts at <\/em>Centro<\/em><\/a>, an online media buying technology services company. \u00a0Scott has been a pioneer in the sourcing world for nearly two decades, having been a practitioner, consultant and strategist with the likes of PwC, Aon Consulting, PA Consulting and Booz Allen Hamilton. \u00a0He can be reach at scott dot golas at centro dot net.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Ever wonder where those banners and pop-up ads you see as you surf the internet come from? 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