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

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.