Marketecture: Get Smart. Fast.
00:05:51 · Eric Franchi, Tim Rowe, Ari Paparo
[00:05:51] S2: offline, the two things that come to mind when I think about out of home in addition to what you said, you didn't actually mention, which are billboards on the side of the highway and then, you know, place based stuff. So malls, speaking of REITs. Are those not like on the radar in terms of like being large enough for digital? Is that like the other half of out of home? [00:06:14] S1: So there are some scaled networks in that where we see the the biggest growth coming from I think is the DSPs being able to aggregate a lot of that fragmented supply, take regional malls and regional footprints and put it together as, hey, this is convenience store media. This is mall media. So so combining those those otherwise fragmented networks has been one of the advancements, but still one of the biggest challenges. [00:06:41] S0: When we when we walk through the supply chain from, like, where the dollars come from, where they go to? Is it easier to start on the sell side or the buy side? Maybe maybe sell side. So someone owns real estate. Yep. So you said REITs. So so billboards effectively are owned by real estate providers. They own a building. They own a they own a piece of land, whatever. Do they generally get into the out of home business themselves, or do they then contract with somebody? [00:07:06] S1: Typically, it's through a partner. So a lot of the big billboard companies that you'll see or or even in big cities, it's a public private partnership that's bringing those things to market.
00:07:06 · Tim Rowe, Ari Paparo
[00:07:06] S1: Typically, it's through a partner. So a lot of the big billboard companies that you'll see or or even in big cities, it's a public private partnership that's bringing those things to market. [00:07:16] S0: And it differs by spot. So, Eric, you were saying earlier, you have an investment in the bar, common restaurant. Yeah. Tave. So there are different companies that are now putting the billboards in place, and they do the maintenance of the hardware in some cases or... But but they they have the ad SDK, stuff like that. Then how does it sell? So you then bring in a programmatic exchange and or you have your own Salesforce? [00:07:41] S1: Yeah. There's a lot of small networks that are just, hey, let's plug in the programmatic and we'll take what we can get. And then there's more scaled mature networks that say, hey, we've gotta go out and we've gotta be our own brand champions here. We've gotta tell the story and convince people why this media space is valuable and they're they're seeing [00:07:59] S0: a lot of success. What the leading programmatic companies?
00:07:59 · Ari Paparo, Tim Rowe
[00:07:59] S0: a lot of success. What the leading programmatic companies? [00:08:03] S1: So the big media companies are really leading the way and I think that that's because of controlling valuable real estate. So Lamar is doing a great job on the programmatic side. JCDecaux has their own programmatic platform. So kind of the usual suspects are are doing a great job, but then there's smaller players. Eric, you mentioned Tave. We mentioned Octopus. Octopus who who obviously is now part of the the T Mobile consortium as it is. There are companies like that that are doing really smart things and making the right choices that I think have an opportunity to win disproportionate to the rest of the market that's just hanging screens and kinda hoping that if we build it, they will come. [00:08:44] S0: Are the mainstream SSPs like Magnite PubMatic Index involved in this? [00:08:48] S1: They are. So... And and really, you see the main digital out of home DSP or SSP rather is a company called Place Exchange that was born out of intersection media. Google backed intersection media needed to be able to get their digital inventory on the programmatic pipes and spun off Place Exchange because of it. So they're one of the leaders globally. You've got other companies like HiveStack that that do a good job on the international side, I think, of bringing that inventory together. But those are two of the leaders and then plugging in, subsequently to to access that demand. [00:09:24] S0: And what about Vistar? I think a lot of people are familiar with Vistar. Don't know exactly what they do
00:09:24 · Ari Paparo, Tim Rowe
[00:09:24] S0: And what about Vistar? I think a lot of people are familiar with Vistar. Don't know exactly what they do [00:09:28] S1: They emerged as the dedicated digital out of home DSP and they are by far the market leader in terms of dedicated digital out of home DSP. [00:09:37] S0: Okay. So there's dedicated DSP, but then, you could use an omnichannel DSP. So what's the... How do the buyers think about that? [00:09:44] S1: It depends on which buyers we're talking to. So if you think... I think one of the misnomers is that programmatic digital out of home is being bought by out of home teams. It's really not. Out of home teams are buying more digital out of home because it's similar to the traditional out of home that they bought, but maybe offers them the ability to be a little bit more dynamic, more timely, things like that. But the programmatic adoptions really coming from programmatic buying teams looking for more space to serve ads onto. About 40% of all the programmatic money goes to billboards. So a lot of money flowing to the large formats and then everyone else fighting over what's left. Fifteen second video plays really well. Networks that can take fifteen second video, they're winning. But that's kinda where the money goes. [00:10:33] S0: Yeah. I once had the dedicated digital out of home buyer described to me as sitting in the basement of a midtown advertising business building with a fax machine, 90 years old, file cabinets showing what they what they bought in what area of ZIP codes of the country. Is that... Would you take offense to
00:10:33 · Ari Paparo, Tim Rowe
[00:10:33] S0: Yeah. I once had the dedicated digital out of home buyer described to me as sitting in the basement of a midtown advertising business building with a fax machine, 90 years old, file cabinets showing what they what they bought in what area of ZIP codes of the country. Is that... Would you take offense to [00:10:52] S1: that description? I would not take offense to that, and I'll give you a story about an account executive I worked with at a billboard company. Only five... This is five years ago, so still in the modern era. Great guy, one of the most passionate billboard salespeople I've ever met. His CRM system... This is not a joke. I wish it was. His CRM system was a cardboard box with manila folders full of printed out emails, Chinese food menus, post it notes, and that's one of the largest billboard companies in the country. Now that's five years ago. Obviously, maybe things have changed, but within the last half decade, that was the CRM system for one of the biggest outdoor media companies in The United States.
00:10:52 · Tim Rowe, Ari Paparo
[00:10:52] S1: that description? I would not take offense to that, and I'll give you a story about an account executive I worked with at a billboard company. Only five... This is five years ago, so still in the modern era. Great guy, one of the most passionate billboard salespeople I've ever met. His CRM system... This is not a joke. I wish it was. His CRM system was a cardboard box with manila folders full of printed out emails, Chinese food menus, post it notes, and that's one of the largest billboard companies in the country. Now that's five years ago. Obviously, maybe things have changed, but within the last half decade, that was the CRM system for one of the biggest outdoor media companies in The United States. [00:11:37] S0: I'm sure there's some way to file away your Chinese menus in salesforce.com. They... There's probably a marketplace vendor that allows you to do that. So, so let's go on to the... Let's ignore the dedicated out of home people. Let's talk about the digital native people who are now, you know, dabbling here. I have a multipart question. First question... Part is, do they know that they're buying out of home, or they buying it by accident? The second question is, how are they treating it against their spend that is more traditional? And third is, how are they measuring it?