A Danish media agency that uses AI to make all its ad spend decisions is coming to the US to steal clients from the big holding companies.
Carl Erik Kjærsgaard, chief executive and cofounder of Blackwood Seven and Mark Zaumer, Blackwood Seven North American CEO. A new type of media agency that uses predictive analytics and artificial intelligence to help clients decide where they should be spending their ad dollars launched in the US last week, with the aim of challenging the traditional agency business model in order to pick up big clients. Blackwood Seven was founded in Copenhagen in 2013 but has now entered the US market, thanks to the acquisition of performance marketing agency Two Nil, which has a roster of clients including Dollar Shave Club, Groupon, Wix, Zillow, Blue Apron, and The Honest Company. Speaking to Business Insider, Blackwood Seven's chief analytics officer Dr Michael Green explained that the company doesn't rely on "gut feeling" to make media decisions on behalf of its clients.
Instead, Blackwood Seven is a software platform, which charges clients a software fee, rather than taking an agreed commission on total media spend like normal agencies. Nor does the company make bulk ad spend commitments to media owners or buy media slots in advance and sell them back to its clients.
The platform allows clients to use automated processes to buy across internet and with traditional media such as TV, print, and billboards where media owners have a real-time bidding offering . The algorithm picks the optimum media mix by predicting a forecast of the expected business results of a media plan.
Clients also plug in all their transactional data to determine, in near real-time, which of their media investments are giving them the best returns once they have placed their ad spend.