I know TTD is less popular around this board these days, but part of today’s surge in TTD (up 12%) could be attributed to this video from CEO/Founder Jeff Green:
My summary of what he said:
–Current covid environment is causing the move from linear tv to connected tv to accelerate, and the demand for data driven advertising is also accelerating
–Ad inventory has risen by over 30%. This is happening because 1) consumers want on demand content more than ever before and 2) broadcasters are moving content to “on demand” to satisfy what consumers want and to compete with companies like netflix
–Rapid move of both consumers and content to connected tv has caused advertising subscriptions to increase at an unprecedented rate
–Data driven advertising is the only form of advertising where you can point to it, and say that you know it worked. It makes it “defensible” spending.
–Connected tv enables advertising to be more measurable and comparable than ever before.
Vinegar101 thoughts: The fact that Jeff Green is basically announcing triumph already makes it more likely we see a strong earnings report in mid May.
A friend that works at ATT in their advertising dept told me this last Saturday that his department is extremely busy. Banner ads, hand held devices and streaming services.
Very curious to hear the next earnings call. A fan of Greene, much like I was a fan of Hastings and Bezos as visionary CEOs 15 and 20 years ago and still holding both those positions.
I still don’t get it. I stream virtually 100% of the time my tv is on. When I’m watching a series or a movie on Netflix or Prime or HBO Max or Disney+, I’m certainly not seeing any ads. Where is this huge demand for OTT advertising that I’ve never seen?
I still don’t get it. I stream virtually 100% of the time my tv is on. When I’m watching a series or a movie on Netflix or Prime or HBO Max or Disney+, I’m certainly not seeing any ads. Where is this huge demand for OTT advertising that I’ve never seen?
It’s all about the “race to zero.” As more and more OTT platforms emerge the cost of subscribing to them all will be unrealistic to the common person. We’ve already seen some of these OTT platforms offer up free content during our current world climate, and that is only a precursor to the theory that many will rely more on an AVOD (advertising on demand) model and opt for their offerings to be free and thus gain more eyeballs versus of recurring monthly subscription price of, say, $9.99. Those eyeballs will be monetized through ad revenue, far greater than through subscription billings. In short, the YouTube model.
Thanks, Brandon. That certainly makes more sense than Rtichy’s explanation that it’s the Major League channels and ESPN. There are no sports being played right now. I doubt those channels are seeing 30% growth in the past few weeks as Green says in the video.