AdTechGod Pod Episode 54 Summary: Tyler Fitch from Tubi Discusses All Things Streaming

Release Date: November 12, 2024

Introduction

In Episode 54 of the AdTechGod Pod, host AdTech God welcomes Tyler Fitch, the Senior Vice President of Partnerships at Adrise, a division of Tubi Media Group. Tyler brings a wealth of experience from his eight-year tenure at Tubi, a leading free ad-supported streaming service recently acquired by Fox Corp in 2020 for $440 million. This episode delves into Tyler's journey in the advertising technology (adtech) industry, Tubi's growth strategies, the evolving landscape of connected television (CTV), and the challenges and opportunities that lie ahead.

Tyler Fitch's Journey into AdTech

Tyler begins by tracing his entry into the adtech realm:

Tyler Fitch [03:25]: "I think Craigslist got me into adtech back in 2006 where I joined a, I would say burgeoning social network called perfspot.com... I've worked my way up... from sales to Programmatic and selling and then it's TV."

Starting in sales at perfspot.com, Tyler's career trajectory took him through various facets of adtech, including social networks like High5 and Friendster during the MySpace era, gaming with Jam City, and ultimately connected television with Tubi. His diverse experiences have positioned him to navigate and contribute to the rapidly evolving adtech landscape.

Tubi’s Growth and Strategic Focus

Tyler discusses Tubi's remarkable growth and the strategic decisions driving its success:

Tyler Fitch [06:42]: "The growth that we've seen in Tubi is even an enigma where we've only focused on video on demand... The reason why Tubi has done so well is just the laser focus of the viewing experience and the content and the personalization that really put itself ahead."

Tubi distinguishes itself by concentrating solely on video on demand (VOD), enhancing flexibility and user engagement compared to traditional fast ad-supported TV (FAST) channels. This focus on personalization and user experience has propelled Tubi to become the largest free ad-supported TV platform outside of YouTube, achieving top positions in Nielsen's ratings.

Key Success Factors:

• Massive Content Library: Enables effective personalization.
• User Experience: Avoiding rigid ad breaks to maintain viewer engagement.
• Branding and Marketing: Strategic campaigns, such as the Super Bowl ad featuring the "rabbit hole takeover," have significantly increased brand recognition.

Challenges in Monetization and Scaling

As Tubi scales rapidly, Tyler identifies monetization as a primary challenge:

Tyler Fitch [13:16]: "From a monetization standpoint, there's more and more inventory out there. How do we separate ourselves from the fast channel inventory? How do we create experiences that are great for brands and keep the user experience really high?"

Balancing ad inventory expansion with maintaining a seamless user experience is critical. Tubi leverages its proprietary ad tech platform, Adrise, to personalize ad workflows based on user engagement, allowing for more effective and user-friendly ad placements compared to standard FAST channels.

Challenges Include:

• Maintaining Growth Momentum: Ensuring ad serving keeps pace with an 80%+ annual growth rate.
• Ad Inventory Management: Differentiating from competitors and optimizing monetization strategies.
• Incremental Demand Sourcing: Finding new avenues to attract advertisers and users.

The Future of Streaming and Proving ROI

Looking ahead, Tyler emphasizes the importance of demonstrating return on investment (ROI) for advertisers in the CTV space:

Tyler Fitch [15:57]: "The biggest thing that we can do is to prove the value in ROI on TV... With the digital aspect of TV, it's really showing the advertisers the ROI and investment and looking at outcomes that are driven from an exposure on a TV."

Historically, television advertising has been brand-centric with less emphasis on measurable performance metrics. The integration of digital capabilities in CTV allows for more precise performance tracking, enabling advertisers to link ad exposures directly to outcomes like store visits and sales.

Future Initiatives:

• Enhanced Measurement Tools: Developing metrics that align with advertisers' performance-based KPIs.
• Flexible Transaction Models: Balancing programmatic and direct ad sales to cater to diverse advertiser preferences.
• Accessibility: Making ad investments accessible to a broader range of advertisers, including those with limited budgets.

Programmatic vs. Direct Ad Sales

When discussing the balance between programmatic and direct ad sales, Tyler provides a nuanced perspective:

Tyler Fitch [19:14]: "I think it all will be a mix of both... Our job is to transact, and the best part about owning our own ad tech with Adrise is that it gives the flexibility to transact however they want."

While programmatic advertising is gaining traction for its scalability and efficiency, direct sales remain vital for advertisers seeking more control and tailored experiences. Tubi's flexible ad tech platform accommodates both models, ensuring that advertisers can choose the approach that best fits their strategies and goals.

Industry Challenges and Growth Strategies

Tyler candidly shares the aspects of the industry that present ongoing challenges:

Tyler Fitch [20:44]: "There's a lot of frenemies in the industry and how do we work together? Also, keeping up with sourcing incremental demand for Fox and Tubi."

The competitive nature of the adtech industry, coupled with the rapid pace of growth in streaming, requires continuous innovation and collaboration. Tyler highlights the importance of maintaining strong relationships within the industry and staying agile to adapt to changing market dynamics.

Advice for AdTech Professionals

Addressing a mixed audience of junior to executive-level professionals, Tyler offers heartfelt advice:

Tyler Fitch [24:03]: "Have fun with it... build those relationships across the industry... take care of your team."

He emphasizes the value of enjoying one's work, fostering strong professional relationships, and nurturing team dynamics as key factors for long-term success in the adtech field. Tyler shares insights from his own career, illustrating how a combination of passion, networking, and team support can lead to significant achievements.

Conclusion

Episode 54 of the AdTechGod Pod provides an in-depth look into the strategic mindset and operational challenges of leading a top ad-supported streaming platform like Tubi. Tyler Fitch's experiences underscore the significance of personalization, user-centric design, and flexible monetization strategies in driving growth and maintaining a competitive edge in the evolving adtech landscape. For professionals in the industry, his insights offer valuable guidance on navigating the complexities of adtech, fostering meaningful relationships, and sustaining motivation amidst rapid change.

Notable Quotes:

• Tyler Fitch [03:25]: "I've worked my way up... from sales to Programmatic and selling and then it's TV."
• Tyler Fitch [06:42]: "The growth that we've seen in Tubi is even an enigma where we've only focused on video on demand."
• Tyler Fitch [13:16]: "From a monetization standpoint, there's more and more inventory out there."
• Tyler Fitch [15:57]: "The biggest thing that we can do is to prove the value in ROI on TV."
• Tyler Fitch [19:14]: "I think it all will be a mix of both."
• Tyler Fitch [24:03]: "Have fun with it... build those relationships across the industry... take care of your team."

This summary captures the essence of the conversation between AdTech God and Tyler Fitch, highlighting key discussions on Tubi's growth, the future of ad-supported streaming, and valuable insights for adtech professionals.