DOmedia, based Columbus, Ohio, has been subject to news articles and a lot of talk in the industry about its planning and buying platforms and particularly about its charges to media companies, so we wanted to talk to Rich Langdale, managing partner, NCT Ventures, and DOmedia’s interim CEO.
Langdale wants to clear up some misconceptions, beginning with the fact that when it accepts an order for a buy, its maximum price is 2% for alternative and digital media and 1% for traditional out-of-home. “It can be less depending on the buy, but that’s the maximum,” says Langdale.
What about the fact that there is 2%-5% price on the website? “That figure was a standard that we marked for our terms of service over a year ago. Like others, we charge more for value-added services. But for a buy, the 2% and 1% is the maximum.”
Another misconception? “No one who has received an order has rejected the cost,” Langdale says. “Only one company – Zoom – has refused to use our system. That all companies are rejecting it is completely inaccurate. We obviously want to create efficacy for the sellers. Agencies, of course, don’t pay for use.”
While Langdale would neither confirm nor deny figures published in our Nov. 15, 2010, article, he says, “It’s an absolute misconception that we are undercapitalized. That’s erroneous information. NCT Ventures has 20 years of success. The LPs (limited partners) in our fund are major. As of last month we were profitable. We could go for further investments, but we have no need and there are no plans for doing so at this time.”
Langdale told us about DOmedia’s planning and buying products. Its search product, DOfind, has 351 active agencies and 700 active sellers of media listed. It has been used for thousands of searches to develop plans.
DOplan, is currently in Beta. In addition to Starcom Mediavest Group, Langdale says that five other companies are testing it, “but I’d prefer that they announce themselves rather than my doing so,” (Jack Sullivan, senior vice-president media director of SMG is on a DOmedia advisory committee.)
DObuy as a tool is not yet in market but that product will involve proof-of-performance, average CPMs and other information. Although Langdale says that there will no incremental cost for DObuy, he did says that every tool has added value. And other DO tools are in the works.
“And,” says Langdale, “Ayuda isn’t a charity. I’m sure it will charge for incremental costs, too.
”You know, like in any market, competition is a good thing. It’s good to see various sites open up. But we’ve invested in our products, and the confusion regarding ‘conflicts of interest’ is causing angst. I do believe, though, that the healthiest situation would involve some form of consolidation.”