AdTechGod Pod: Episode Summary

Title: The Refresh News: The Trade Desk’s Ventura OS: Disrupting CTV, Monetization, and User Experience
Release Date: November 20, 2024
Host: AdTechGod
Guests:

• Tony Marlow – CMO of LG Ads
• Scott Ensign – Chief Strategy Officer at Butler Till
• Shiv Gupta – Founder of You of Digital

Introduction

In this episode of the AdTechGod Pod titled "The Refresh News: The Trade Desk’s Ventura OS: Disrupting CTV, Monetization, and User Experience," host AdTechGod delves into the recent announcement by The Trade Desk regarding their new TV operating system, Ventura. Scheduled for a 2025 launch, Ventura is poised to challenge existing players like Roku, Amazon, and Google by offering an independent platform aimed at reducing conflicts of interest inherent in content ownership. The episode features insightful discussions with industry experts Tony Marlow, Scott Ensign, and Shiv Gupta, exploring the potential impact of Ventura on the Connected TV (CTV) landscape.

Overview of Ventura OS

AdTechGod opens the discussion by highlighting The Trade Desk's ambitious press release, which emphasizes Ventura's unique positioning as an operating system that diverges from traditional models tied to content ownership. The Trade Desk claims Ventura will address market conflicts by operating independently of major content providers.

• AdTechGod [00:00]: "The Trade Desk is really trying to tackle the conflicts of interests by leveraging an independent type of product outside of content ownership."

Tony Marlow responds by acknowledging the preliminary nature of Ventura's details, noting that essential factors such as hardware integration and user experience need to be addressed before fully understanding Ventura's operating model.

• Tony Marlow [03:03]: "Before you even have the conversation about advertising, you need hardware, software, and a positive user experience."

Partnerships and Industry Reactions

A significant point of discussion revolves around The Trade Desk's potential partnerships, particularly the hinted collaboration with Sonos.

• Tony Marlow [04:58]: "Patrick Spence over at Sonos... 'we are excited to explore the integration of premium audio and video.'"

Scott Ensign confirms the association, recalling a recent Sonos announcement about partnering with The Trade Desk to power its operating system, which suggests a strategic move towards an "Intel Inside" model where The Trade Desk provides the backend technology.

• Scott Ensign [05:21]: "Trade Desk's first Partner to be the operating system for any hardware is Sonos."

Impact on the CTV Market

The guests explore how Ventura OS could reshape the CTV ecosystem by introducing more transparency and potentially increasing competition.

• Scott Ensign [07:19]: "Trade Desk's ethos has always been agnostic... but now they're essentially going to be a walled garden of sorts in the DSP space."

Shiv Gupta highlights the complexity of integrating enterprise software like The Trade Desk's with consumer-facing operating systems, emphasizing the challenges in user interface and experience.

• Shiv Gupta [33:03]: "They have built enterprise software, not consumer-facing OS, which is a very different proposition."

Tony Marlow raises concerns about the scalability and market penetration of Ventura OS, questioning whether it can capture significant market share against established players.

• Tony Marlow [23:54]: "There are only long tail opportunities for them... How much opportunity could they realistically rapidly get?"

Business Models and Revenue Sharing

The conversation delves into the mechanics of potential revenue-sharing models between The Trade Desk, OEMs, and app developers.

• Scott Ensign [15:32]: "When there are two parties involved, like Trade Desk and Sonos, there's an arrangement for divvying up ad inventory or revenue."

Tony Marlow compares Ventura's approach to Roku's licensing strategy, suggesting that The Trade Desk might adopt a similar model by integrating their OS into white-label or lesser-known brands to enhance distribution.

• Tony Marlow [16:30]: "They would essentially reach some sort of rev share or specific dollar amount to get that operating system into TVs."

Consumer Experience and Innovation

A critical aspect discussed is how Ventura OS could enhance the user experience in CTV by leveraging AI for better content discoverability.

• Tony Marlow [27:43]: "Our data shows around 11 and a half minutes... we're feeling the pressure to increase discoverability."

Shiv Gupta agrees, noting the potential for Ventura OS to streamline content discovery and offer more meaningful measurement across platforms.

• Shiv Gupta [20:13]: "Consumers haven't seen a great experience yet. There's potential for something like an iPhone or Tesla in the CTV space."

Tony Marlow introduces the idea of generative AI in creative ad generation, suggesting that Ventura OS could democratize high-quality ad creation for smaller businesses.

• Tony Marlow [25:04]: "In 2025, one of the surprising big areas of growth for Connected TV will be local and AI-driven creative generation."

Future Implications and Market Disruption

The guests speculate on the long-term effects of Ventura OS on the advertising technology ecosystem and potential regulatory challenges.

• Shiv Gupta [34:06]: "There's a huge market hungry for better solutions. If Trade Desk does this well, it could positively disrupt the value chain."

AdTechGod expresses concerns about The Trade Desk gaining excessive control over the CTV space, drawing parallels to Google's dominance.

• AdTechGod [37:33]: "They're doing exactly what Google's doing... dominating the demand space and bypassing SSPs."

Shiv Gupta remains optimistic, believing that Ventura OS can provide significant benefits without necessarily leading to monopolistic control, provided The Trade Desk manages growth responsibly.

• Shiv Gupta [40:33]: "There's so much ripe for disruption in the CTV space. If done right, it could benefit all consumer segments."

Conclusion

The episode concludes with a lightning round of final thoughts, where the guests emphasize the need for The Trade Desk to demonstrate tangible successes and partnerships to validate Ventura OS's potential. They agree that increased competition and innovation are beneficial for the CTV ecosystem, but caution that The Trade Desk must navigate partnerships and market dynamics carefully to avoid replicating the monopolistic pitfalls seen with giants like Google.

• Tony Marlow [43:07]: "I can't say I'm not worried, but I hope for The Trade Desk's responsible growth."
• Scott Ensign [43:14]: "It's good to have more competition, but we'll have to see how Trade Desk navigates this journey."

AdTechGod wraps up the episode by thanking the guests for their insightful contributions, underscoring the significance of The Trade Desk's Ventura OS announcement in shaping the future of advertising technology.

Key Takeaways

• Ventura OS by The Trade Desk aims to disrupt the CTV market by offering an independent operating system, potentially reducing conflicts of interest associated with content ownership.
• Partnerships, especially with brands like Sonos, are critical for Ventura OS's market penetration, but the exact nature of these collaborations remains unclear.
• Market Impact: While Ventura OS promises increased transparency and monetization opportunities, there are concerns about creating new "walled gardens" within the DSP space.
• Consumer Experience: The integration of AI could significantly enhance content discoverability and user engagement on CTV platforms.
• Business Models: Revenue-sharing and inventory agreements with OEMs and app developers will play a pivotal role in Ventura OS's adoption and success.
• Future Challenges: Regulatory scrutiny and maintaining an open ecosystem are potential hurdles The Trade Desk must navigate to ensure sustainable growth and industry acceptance.

This episode provides a comprehensive analysis of The Trade Desk's Ventura OS, offering valuable insights into its potential to reshape the CTV and advertising technology landscapes. The discussions underscore both the opportunities and challenges inherent in introducing a new operating system within a highly competitive and established market.