Marketecture: Get Smart. Fast.
00:23:00 · Tim Rowe, Ari Paparo
[00:23:00] S1: I would say I don't wanna live in that world. I'll take the self driving cars, but you can leave the minority report at home. I don't know if I can have my cake and eat it too. [00:23:08] S0: Alright. So this was awesome. Tim Rowe, OOHInsider podcast. Do have a newsletter too? [00:23:15] S1: Just a The easiest place to go is the oohinsider.com. Really active on LinkedIn. That's kind of the hub of all things out of Home Insider. [00:23:23] S0: Nice. Alright. Let's take a quick break, and we'll be back with news of the week. This podcast is sponsored by Adelaide. You've probably heard of Adelaide by now. This month, they announced a new product, Adelaide for Publishers. For the first time, publishers can leverage attention metrics to curate inventory, deliver attention insights, and drive higher CPMs. Join The Weather Company, NPR, Westwood One, Cumulus Media, and other leading publishers taking advantage of the attention economy's most popular metric, AU. Maybe one day Mark will convince me to sell guaranteed AU slots on Marketecture, but probably not. Check out adelaidemetrics.com/afp for more information.
00:24:03 · Eric Franchi
[00:24:03] S2: And we're back. Hope everybody had a good, Labor Day weekend. So a few juicy things dropped, right before the weekend and right after the weekend. So let's get into it. We've got TTD rumored to be building a TV operating system, a critical analysis of Netflix future in ads, and some other cool stuff around attention and and some m and a as well. So we'll start with TTD. So an independent journalist named Django Rutgers... Django, sorry if I butchered that. Dropped the scoop right before the holiday weekend that TTD is building a TV operating system. We'll put it in the newsletter. Ari did a epic breakdown of what this might look like. You should absolutely read that for some primaries. We should talk about it. Couple things here, really two. So it's, you know, number one, outside of the fact this is, you know, kinda kinda awesome is, people working on the product, and I'm quoting the the piece, include former senior Roku employees, speaking of, and at least some team members have been hiding the fact that they are employed by the trade desk on LinkedIn. Seems to be a very appily technique there if indeed it's happening. That was thing one. Thing two, just strategically, picked up, you know, something in the piece where sounds like they're going to be using a open source, version of Android, tvOS, which I think, a, can make this, you know, sort of, like, easy to get to market, but then b, apparently, Android doesn't like when you fork their technologies, so it could be a little bit of a hiccup. Two things that I picked up. What do you guys think? This sounds... I think some people think it's crazy, some people think it's awesome.
00:25:36 · Ari Paparo, Eric Franchi
[00:25:36] S0: Yeah. I put a lot of my thoughts in the newsletter, but I wanna follow-up with some reporting. So I've been in contact with... I'll I'll just say one anonymous source. So it's not confirmed by multiple people, but I talked to one person who is in the industry who would have a reason to know the ins and outs here. And they said, yes. Definitely happening. And in fact, there are contracts out to most app providers and fast channels already, and they have some signatures for distribution. But with that said, they don't necessarily have, manufacturers or glass lined up. That's the reporting I've got from one one anonymous source, so take it with a huge grain of salt. The other thing is that I'm still not clear, even if... Even my source was not clear on what this is. Is it a full OS, or is it just like a thin layer, like an... A unified ad SDK that might go on top of somebody else's OS? Or are they gonna sell TVs? Like, there's, like, a lot of different ways this could go to market, and the original article wasn't clear on that, and it could I I don't think we should just assume the business plan, based on the information we have, which is really pretty thin. [00:26:43] S2: Yeah. Of those three, and we'll get to you in a second, Tim, full OS, you know, kinda like lighter weight at STKOS or just, you know, like all in, burn the boats, TTD TV. What do you think? One, two, or three?
00:26:43 · Eric Franchi, Ari Paparo
[00:26:43] S2: Yeah. Of those three, and we'll get to you in a second, Tim, full OS, you know, kinda like lighter weight at STKOS or just, you know, like all in, burn the boats, TTD TV. What do you think? One, two, or three? [00:26:57] S0: I think they would love it if there were some way to just do the ads SDK. Because if you're trying to talk to a Samsung or a Vizio who already has an OS, already has an ads business, you're asking them to to swap the whole thing out, which would be very expensive. It'll... Big opportunity cost lost. But if there's some way they could convince them to make this additive to pay them, you know, so that's a new revenue stream and it's not overly disruptive, maybe if it improves their monetization in some way, then that would be exciting. But I don't really know how that would work. [00:27:29] S2: Tim, one more question for Ari, and then we'll get to you. What is the level of work and integration for a TV ads SDK? [00:27:38] S0: Well, I think you have something like Android as a starting point. I think you would have to do quite a bit of work to, make it very user friendly if it's a full OS. Consumers are gonna care about that a lot. And then the number of hardware variations is going to turn into a big burden. You could see this in the Android world where Google has their own Pixel phone, which they spend the time on, but then they have, you know, tens or hundreds of OEMs, every one of which adds complexity to the operating system and to the integration. So I think the distribution strategy has a lot to do with the level of lift.
00:27:38 · Ari Paparo, Eric Franchi, Tim Rowe
[00:27:38] S0: Well, I think you have something like Android as a starting point. I think you would have to do quite a bit of work to, make it very user friendly if it's a full OS. Consumers are gonna care about that a lot. And then the number of hardware variations is going to turn into a big burden. You could see this in the Android world where Google has their own Pixel phone, which they spend the time on, but then they have, you know, tens or hundreds of OEMs, every one of which adds complexity to the operating system and to the integration. So I think the distribution strategy has a lot to do with the level of lift. [00:28:12] S2: Makes sense. Tim, go ahead. [00:28:14] S1: I don't know that I have a taker can add value to that, but I would love to hear from y'all's standpoint of why you think that they are approaching it from from this kind of angle? Why are they going this route to solve the problem, you think? So big companies do big things. This this is [00:28:32] S2: a big move. Right? This isn't just about, like, you know, facilitating the buying of CTV. This isn't... You know, it's about, you know, kinda like, you know, having access to inventory. This is like, you know, actually like having a, you know, root level access to the inventory, you know, being in front of the consumer, having deep integration with the the the the TV players, like, I think that this is a is a move that is appropriate for a player of TTD scale. Like, this would be a very big exciting move. That's my take. What do think, Ari?
00:28:32 · Eric Franchi, Ari Paparo
[00:28:32] S2: a big move. Right? This isn't just about, like, you know, facilitating the buying of CTV. This isn't... You know, it's about, you know, kinda like, you know, having access to inventory. This is like, you know, actually like having a, you know, root level access to the inventory, you know, being in front of the consumer, having deep integration with the the the the TV players, like, I think that this is a is a move that is appropriate for a player of TTD scale. Like, this would be a very big exciting move. That's my take. What do think, Ari? [00:29:05] S0: Yeah. So number one, ACR data. It's the gold standard in TV, and they... It's controlled by other people. Number two is user data. So they're trying to convince all these players in the TV business to give them IDs. And if you have the login at the TV level, it's a lot easier. And number three is disintermediation. They're having to negotiate with a, you know, a hornet's nest of companies, every single one of which has its own advertising division and wants to not work with Trade Desk ultimately because they'd rather keep the margin themselves. So the whole future of the company is dependent on cooperation among these global behemoth companies who have your worst interest at heart. So I like the swing.