Marketecture: Get Smart. Fast.
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.
00:29:05 · Ari Paparo, Eric Franchi
[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. [00:29:46] S2: And just a point on the on the fragmentation. I did a a couple of searches, you know, lead... Leading up to this. Like, you know, it's not like the mobile or web market where there's, like, one player to rule them all, I e Chrome and then, you know, Safari and then a couple others. The operating systems is so fragmented. So Android TV has 6%. Samsung Tizen has, you know, just over 6%. Roku TV has 6%. Fire TV has 6%. Smartcast by by Vizio has 6%. So it's like a super fragmented space. So, you know, one would expect that if they can be that ads SDK layer for everyone, this could be like a a really exciting bold move.
00:29:46 · Eric Franchi, Ari Paparo
[00:29:46] S2: And just a point on the on the fragmentation. I did a a couple of searches, you know, lead... Leading up to this. Like, you know, it's not like the mobile or web market where there's, like, one player to rule them all, I e Chrome and then, you know, Safari and then a couple others. The operating systems is so fragmented. So Android TV has 6%. Samsung Tizen has, you know, just over 6%. Roku TV has 6%. Fire TV has 6%. Smartcast by by Vizio has 6%. So it's like a super fragmented space. So, you know, one would expect that if they can be that ads SDK layer for everyone, this could be like a a really exciting bold move. [00:30:28] S0: But it's Yeah. And they might they might be their success at five or 6%. Maybe that Yeah. You know, getting the ability to capture some portion of the audience and to have leverage over their distribution partners might be the end game here. [00:30:39] S2: Yeah. That's a that's a really good point. So hopefully hopefully, more to come on this. And shout out to Janko, who became, like, really famous in ad tech after I don't think anybody had ever heard of Janko before. [00:30:51] S0: Nice job, Janko.
00:30:51 · Ari Paparo, Eric Franchi
[00:30:51] S0: Nice job, Janko. [00:30:53] S2: Yeah, Janko. Come on the pod. Okay. We'll continue on the theme of of TV. So there was a long and perhaps gossipy story from Insider this week about at Netflix's ads leadership, the hunt to replace Peter Naylor, the conflict between programmatic and direct product and sales at Netflix. So you should all check it out. It's really, really good. This is, like, pretty fascinating how publicly this thing is, is is playing out. And I'll, I'll pull a quote from the piece just to, you know, kinda give some more additional context. People who had conversations with Netflix and said Reinhard, who's the the head of sales, appear to still be deliberating on topics like how much Netflix should rely on automated versus direct sales, how much the company should use outside partners to jump start growth while it builds its own ad server, how much should it share price customer data, like household income with advertisers, like real existential questions on, like, the biggest TV platform out there. Ari, if if they hired you to be the consultant on this and there was these big questions around, you know, like, build a direct sales team versus programmatic or in addition to programmatic, give up the user data measurement, like, of these things, like, what would you tell them to do? [00:32:13] S0: I don't know, man. This is a tough one. [00:32:15] S2: Who do they hire? Okay. Let's start with who do they hire? Who do they hire? Do they hire a media person? Do they hire an ad tech person?