Marketecture Podcast Summary: Episode 104 - Year in Review, Awards, and Predictions with Ari and Eric

Published on December 27, 2024

Introduction

In Episode 104 of the Marketecture Podcast, hosts Ari Paparo and Eric Franchi delve into a comprehensive year-end review, celebrate industry achievements through their Market Awards, and unveil insightful predictions for the advertising and marketing landscapes in the upcoming year. This episode seamlessly blends reflections on past trends, evaluations of notable successes and setbacks, and forward-looking statements that promise to shape the industry’s future.

Year in Review

Market Awards Recap

Ari and Eric kick off the episode by revisiting their Market Awards, a segment where they evaluate their predictions and analyses from the previous year. They candidly discuss both their accurate calls and missteps, providing valuable lessons for listeners.

Eric reflects on his successful predictions regarding public CEOs, highlighting Adam Siroca of Applovin and Tim Vanderhoek of Viant as standout leaders who have significantly impacted their companies:

“[...] Adam from Applovin and Tim from Viant were two good calls last year. And I think those were two good calls this year as well.” [03:35]

Conversely, Ari acknowledges a less successful prediction involving Ross from VideoAmp, whose subsequent job loss and company struggles served as a humbling experience:

“We joked about this on the pod previously that my call, we asked who's the best, like private company CEO, and I called out Ross from VideoAmp and he like promptly lost his job like a week after we recorded.” [04:00]

Ad Tech's Cookie Conundrum

A significant portion of their review focuses on the ongoing cookie debate within the ad tech industry. Ari and Eric express skepticism about the progress made over the past year, noting that the promised advancements in cookie alternatives remain elusive.

Ari comments on Google’s role in the uncertainty surrounding cookies:

"Google also shit the bed in addition to everybody else." [05:48]

Eric concurs, emphasizing the industry's stagnation:

“The industry... did not find a way.” [05:55]

They discuss Google’s controversial Sandbox trial, which continues to add layers of uncertainty rather than providing clear solutions:

“The sandbox is not dead by any means, but they're not unilaterally removing cookies.” [06:18]

Mergers and Acquisitions (M&A) Highlights

The hosts highlight a robust year for M&A activity in ad tech, showcasing strategic acquisitions that signify consolidation and growth within the industry.

Ari mentions key acquisitions such as Audigen by Experian and Innovid by MediaOcean, underscoring the trend of established companies acquiring innovative startups to bolster their capabilities:

“We have the Audigen acquisition that just happened. We have Innovid being acquired by MediaOcean.” [08:23]

Eric adds to this by noting other significant deals, including Walmart’s acquisition of Vizio and LiveRamp’s acquisition of Pabu, illustrating a diverse range of strategic moves:

“You had Walmart Vizio. You had LiveRamp Pabu. You had Reddit, Memorable.” [08:22]

Awards

Best CEOs and Executives

Public CEOs:

• Jeff Green of Applovin is lauded for his exceptional execution and strategic initiatives, notably building The Trade Desk's data platform and developing their own operating system. His leadership has driven Applovin’s stock to surge 70% year over year, making him a standout figure in the public sector.

  “They’re up 70% year over year, so far exceeding the market.” [15:15]

• Tim Vanderhoek of Viant is recognized for his outstanding performance, with Viant’s stock soaring 200% year over year. His strategic product launches and M&A activities, including the acquisition of Iris TV, have positioned Viant as a formidable player in ad tech.

  “Viant was up 200% year over year. They recorded the product announcement of the year with Vian AI.” [16:54]

Private CEOs:

• Bill Wise of MediaOcean receives unanimous acclaim for his leadership in orchestrating the acquisition of Innovid and successfully integrating new strategic investments from major customers. His ability to navigate competitive pressures and vanquish rivals like Hudson MX demonstrates his prowess in managing and expanding MediaOcean’s footprint.

  “The acquisition of Innovid. Private company acquiring a public company. That is no joke.” [18:18]

Honorable Mentions:

• Bach of Scope Three is acknowledged for his resilience and ambitious vision to decarbonize not just ads but also AI, following a successful recovery from heart surgery.

  “He successfully came out of heart surgery, recovered, and came out with a bigger and more ambitious vision.” [19:33]

Worst Moments of the Year

Ari and Eric candidly discuss the most cringe-worthy moments of the year, highlighting significant missteps within the ad tech space.

• Google’s Privacy Sandbox: The much-anticipated Privacy Sandbox initiative is deemed a colossal failure due to industry non-compliance and regulatory challenges. The hosts express disappointment in Google's inability to resolve these issues, suggesting it may lead to a "trough of disillusionment."

  “Google at some point just threw up their hands and said we can’t solve these problems.” [14:37]

• Sincera’s MFA Inventory Debacle: The mishandling of MFA inventory by Sincera, involving sudden shutdowns and lack of transparency, is cited as another major faux pas.

  “The company creating MFA inventory and they shut it down.” [21:58]

Hottest Startups

Early-Stage Startups

• Chalice: Recognized for pioneering custom algorithms and innovative approaches to inventory valuation at the page level. Chalice has garnered attention through strategic announcements and impressive growth metrics.

  “Chalice is on a tear just with pioneering this idea of custom algorithms.” [22:51]

• Adelaide and Lumen: Adelaide has made significant strides in attention measurement, recently raising a seed-plus round, while its European counterpart, Lumen, partnered with IAS to enhance their AI-enabled data plays.

  “Adelaide just recently raised their sort of borderline. It wasn’t a B round.” [23:57]

• ShopSense AI: Lauded for its innovative third-screen shopping experiences, enabling consumers to shop while watching TV through interactive URLs and QR codes.

  “Shop Sense is like a third screen shopping experience. You’re watching the NBA and they put up a URL or a QR code and you could shop.” [24:34]

Late-Stage Startups

• TV Scientific: Commended for championing performance TV with strategic investments and groundbreaking product launches. Their intense focus on patents and innovative methodologies sets them apart in the market.

  “TV Scientific is pioneering and becoming synonymous with this idea of performance TV.” [25:45]

• Vibe: Noted for its user-friendly approach to CTV advertising, offering services like AI-generated creative builders and developing proprietary supply paths, making CTV advertising more accessible for small businesses.

  “Vibe is taking a different approach, going very small business. Sign up with a credit card, buy TV for $50 a month.” [26:34]

Technological Trends

Curation in Ad Tech

Ari emphasizes the emergence of curation as the hottest trend in ad tech, propelled by companies like Audigen and Index. Curation allows for more precise targeting and inventory management, benefiting both advertisers and publishers.

“This was the year of curation.” [10:37]

Artificial Intelligence (AI)

AI continues to dominate the tech landscape, with significant advancements and widespread adoption across various facets of advertising:

• Publishers and AI Platforms: A notable trend is publishers forging partnerships with AI platforms like OpenAI and Perplexity, enhancing content creation and distribution.

  “Every publisher cut a deal with OpenAI or Perplexity.” [11:01]

• Agentic AI: Both hosts are excited about the concept of agentic AI, autonomous agents capable of managing tasks at scale, exemplified by companies like Pilot Desk.

  “Agentic AI... agents that are autonomous and doing the work of people just at greater scale.” [28:35]

• Brand-Focused AI: Ari advocates for AI applications centered around brand strategies rather than purely creative outputs, anticipating revolutionary changes in how brands interact with consumers.

  “Brand-focused AI, not for creative, but for what might be called the future of SEO.” [30:57]

Reflections on the Podcast

Celebrating a milestone 100th episode, Ari and Eric reflect on their journey with the Marketecture Podcast. They highlight favorite episodes, such as the engaging conversations with Brian O'Kelly and Alex Kohn of Google, which provided deep insights into the industry's complexities.

Eric shares his admiration for episodes featuring leaders like Jason from TV Scientific and Larry Koenig from MIQ, praising their ability to shed light on intricate ad tech dynamics.

“Episode number 67 with Larry Koenig from MIQ was the most educational episode of the year.” [33:25]

Predictions for 2025

TikTok Ban

Ari and Eric discuss the impending Supreme Court decision on banning TikTok in the U.S., speculating on the platform's fate and the redistribution of its substantial advertising spend.

Eric predicts a likely ban:

“Looks like it’s going to be banned.” [36:05]

Ari counters with a more optimistic outlook, suggesting that political maneuvers might prevent the ban:

“Trump will let it slide somehow.” [36:37]

Google’s Ad Tech Spin-Out

Ari forecasts the inevitable spin-out of Google's ad tech assets, driven by ongoing legal and regulatory pressures.

“We get a spin out of the ad tech assets announced. It is announced in 2025.” [37:11]

Mergers and Acquisitions (M&A) Market Heating Up

Both hosts anticipate a resurgence in the M&A market, driven by strategic acquisitions to bridge gaps in areas like CTV, Commerce, and AI.

Eric elaborates:

“With the new administration... companies start to get acquisitive and you start to see the comeback of strategic M and A.” [38:39]

AI Adoption in Advertising

Ari and Eric foresee AI becoming integral to ad tech operations, with companies adopting AI to enhance efficiency and effectiveness across planning, execution, and optimization phases.

Eric states:

“AI goes from... tools becoming adopted at scale and being used to enhance efficiency and effectiveness.” [42:34]

Ari adds that while creative AI remains promising, the true breakout will come from AI-driven planning and campaign management:

“We see either holding company or some agencies fully adopt AI for the planning and early work in the campaign cycle.” [43:15]

Conclusion

As Episode 104 wraps up, Ari and Eric express gratitude to their listeners and acknowledge the support of their unsung heroes behind the scenes. They reiterate the podcast’s commitment to delivering insightful content every Friday and promoting community engagement through various platforms.

“Thank you for listening to the Market podcast... subscribe to our library of hundreds of executive interviews at marketecture.tv.” [47:57]

This episode not only provides a thorough analysis of the past year’s developments but also equips listeners with strategic foresight to navigate the evolving landscape of advertising and marketing in 2025.

Notable Quotes:

• Ari: “Google also shit the bed in addition to everybody else.” [05:48]
• Eric: “They’re up 70% year over year, so far exceeding the market.” [15:15]
• Ari: “We see either holding company or some agencies fully adopt AI for the planning and early work in the campaign cycle.” [43:15]

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