Marketecture: Get Smart. Fast.
00:39:45 · Eric Franchi, Chris Harihar, Ari Paparo
[00:39:45] S1: It's all good. Alright. One more ad tech thing before we get into some interesting fun stuff. Pinterest, Magnite announcement came out earlier this week effectively. It's gonna open up its inventory to programmatic buyers with Magnite as its main pipe, but also through Amazon, Google, and shout out Yahoo DSP. Jason Fairchild is now, I think, he's GM of programmatic, GM of It ads, was so [00:40:14] S2: fascinating to see him in that press release actually, because I'm so used seeing it in very CTV specific environments and context, and that one was a bit different, I thought. [00:40:22] S1: Yeah. He's he's got a big job. He's got programmatic DNA, so this this makes sense, right, just to drive that drive that biz. [00:40:28] S0: Yeah. Totally makes sense. Hedge gardens, basically the second tier walled gardens all have different strategies. They need the revenue. Advert... Agencies don't wanna use their custom ad managers for everything. And, and it's also... And I've said this before. It's like a bit... Becoming a barrier to entry in the DSP business because it's the same three names every single time. You know? It's like it's like Trade Desk, Yahoo, Google if they're not an archrival of Google, and that's about it. And if you're, like, Adform or maybe Hey. Deep was in there. Deep Intent was in there. Alright. [00:41:01] S2: I didn't [00:41:01] S0: know that. Alright. Good for that. [00:41:02] S2: Was in there. [00:41:02] S0: Good for that. [00:41:03] S2: No Trade Desk, I don't think, in that in that... Yeah. Yeah. [00:41:07] S0: It's tough. Were they
00:41:07 · Ari Paparo, Chris Harihar, Eric Franchi
[00:41:07] S0: It's tough. Were they [00:41:08] S2: actually in... They were... Were they were in that? That announcement. I'm trying to think back on it now. [00:41:12] S1: It wasn't in the headline. I just pulled up the headline. It might have been buried. They might have been already there, but noticeably absent to your point, Chris. [00:41:18] S0: For sure. We had the same conversation last week about Netflix's DSP strategy, that there's kind of a limited list. And it's hard hard to get in, yeah, hard to get in that list sometimes. Right? [00:41:28] S1: Yeah. For sure. Alright. There's the cool kids club. Let's talk about some deals. I wanna talk about the smaller of the two, presumably smaller of the two, we don't know, which is, Stagwell. So an agency holdco acquiring Freestar, which is publisher monetization and an awesome company and led by a friend David Friedman. So shout out to, David. So Stagwell, you pointed this out in the notes. They actually own media. The division is literally called owned media by the way. And it's Reach TV, which is travel. They've got an AI, your media system called the media machine. Now they pick up Freestar, and they've got access to a thousand publishers. So talk about the demand side and the supply side coming together. This might not have been the one on everybody's minds if you thought there would be a transaction of agency acquiring publisher side ad tech. So this is super cool.
00:41:28 · Eric Franchi, Ari Paparo
[00:41:28] S1: Yeah. For sure. Alright. There's the cool kids club. Let's talk about some deals. I wanna talk about the smaller of the two, presumably smaller of the two, we don't know, which is, Stagwell. So an agency holdco acquiring Freestar, which is publisher monetization and an awesome company and led by a friend David Friedman. So shout out to, David. So Stagwell, you pointed this out in the notes. They actually own media. The division is literally called owned media by the way. And it's Reach TV, which is travel. They've got an AI, your media system called the media machine. Now they pick up Freestar, and they've got access to a thousand publishers. So talk about the demand side and the supply side coming together. This might not have been the one on everybody's minds if you thought there would be a transaction of agency acquiring publisher side ad tech. So this is super cool. [00:42:26] S0: Yeah. I mean, Freestar, my understanding is that they're mostly like a publisher management layer, like header bidding management and yield management and stuff like that. [00:42:35] S1: It's everything. It's everything. Everything. Monetization. [00:42:37] S0: It could be monetization. Right? Yeah. It's a really good strategic move, I think, because if you're really if you're really AI pilled about media buying, then why not get in there with the publishers and be able to put your orders in there with all the data that's coming in real time, as opposed to having to go through PubMatic or Magnite or somebody and let them do all that decisioning and that that throttling.
00:42:37 · Ari Paparo, Chris Harihar, Eric Franchi
[00:42:37] S0: It could be monetization. Right? Yeah. It's a really good strategic move, I think, because if you're really if you're really AI pilled about media buying, then why not get in there with the publishers and be able to put your orders in there with all the data that's coming in real time, as opposed to having to go through PubMatic or Magnite or somebody and let them do all that decisioning and that that throttling. [00:43:01] S2: So agencies have no data really outside, there's like all of it is client data essentially, so to have your own data if you're talking about building AI capability, I'm in an agency, what data do we have outside of what we have permission to use from from our customers. And so I do think from an AI perspective to your point, Ari, I think it's a smart move. [00:43:21] S0: I I think companies on the sell side who have a lot of variety have a certain value to them like the Raptive or, Sovrn of the world or may... You know, people have tags on the page and are involved with a large number of publishers, have an interesting position here in the AI world because having a large number of publishers is kind of a, differentiator when you're thinking about AI versus just being one big publisher. [00:43:45] S1: Makes sense. Do you think we see more of this? Agencies acquiring publisher tech? I don't know [00:43:49] S0: if agencies do it, but I think those two names I mentioned are pretty interesting as in the... As companies that might be better suited as part of a vertically integrated stack.
00:43:49 · Ari Paparo, Eric Franchi
[00:43:49] S0: if agencies do it, but I think those two names I mentioned are pretty interesting as in the... As companies that might be better suited as part of a vertically integrated stack. [00:43:58] S1: Alright. Another deal. This one just got announced this morning. It was speculated and then the... Then it became official. DoorDash is gonna acquire Instacart for $17,000,000,000. Assume this gets approved. These are, you know, this one might actually, you know, have some conversation with the with the FTC. Again, you pulled this earlier this week when there was some speculation, effectively together they represent about 3,700,000,000 in annual revenue per Brian Wieser from Matt's Ad revenue. Shout out. [00:44:26] S0: Ad ad revenue. Yeah. Ad revenue. [00:44:28] S1: Yeah. Revenue. Ad revenue. Why are we talking about it? It's the ad revenue. Yeah. So it's half of Walmart, but it's still top 30, top 35 total seller of advertising. So this not small, and there's... Obviously, you put these together, there's real room to grow.
00:44:28 · Eric Franchi, Ari Paparo
[00:44:28] S1: Yeah. Revenue. Ad revenue. Why are we talking about it? It's the ad revenue. Yeah. So it's half of Walmart, but it's still top 30, top 35 total seller of advertising. So this not small, and there's... Obviously, you put these together, there's real room to grow. [00:44:43] S0: Retail media, as it relates to consumer packaged goods is very ripe for consolidation. The buyers want fewer fewer ways to buy larger reach, and the products have standard SKUs across many, many retailers, many systems. And so I think that makes a ton of sense. And both of these companies are operating sort of closed marketplaces for ads. They don't, I don't think, do programmatic or anything complicated. It's really just, you know, buyer and seller in the same app. So it's it's, you know, right up the avenue of Kevel, which just raised money last week, you know, that type of technology to build a marketplace. So this makes a ton of sense. I think we... We're starting to see 3,700,000,000 a year in ad revenue. That's big. Like, that's that's really, really sizable.