Marketecture Podcast Summary: Episode 107 - Paige Billins on What 2025 Holds in Store for CTV

Release Date: January 24, 2025

Hosts: Ari Piparo and Eric Franchi
Guest: Paige Billings, SVP of Product Management at Magnite

Introduction

In Episode 107 of the Marketecture Podcast, hosts Ari Piparo and Eric Franchi engage in an insightful discussion with Paige Billings, the Senior Vice President of Product Management at Magnite. The conversation delves deep into the evolving landscape of Connected TV (CTV), exploring its current state, future trends, and the technological advancements shaping the industry as we approach 2025.

The Maturation of Connected TV

Ari Piparo (02:58):
"Connected TV is all anyone was talking about at CES. Seems to be on an unstoppable run. What do you think's different in 2025?"

Paige Billings (03:10):
"We've been on an upward trajectory of CTV for a while in terms of it being the hot topic. This year, we're really starting to mature our offerings in CTV, moving past the initial 'just make it work' phase. Now, we're tackling more advanced challenges like live streaming and unique ad experiences, climbing higher on the maturation curve."

Paige emphasizes that while CTV has been a significant focus in recent years, 2025 marks a period where the industry is transitioning from foundational implementations to more sophisticated and innovative functionalities. This maturation involves addressing complex technical challenges and enhancing the user experience with advanced advertising solutions.

Live Streaming and Sports Rights

Ari Piparo (03:42):
"Live was a big subject that everyone wanted to talk about. Is that really driven by sports and the sports rights starting to get to streaming?"

Paige Billings (03:51):
"Yes, sports are the crown jewels for many publishers. It's expensive to secure sports rights, but they draw substantial subscribers to streaming platforms. However, executing live ads in a dynamic ad insertion (DAI) and programmatic environment is challenging due to the real-time nature and high expectations for a seamless viewer experience."

The discussion highlights the pivotal role of live sports in driving CTV growth. Securing live sports rights is costly but essential for attracting and retaining viewers. Paige also points out the technical hurdles in delivering live ads seamlessly, ensuring that advertisers can capitalize on live events without compromising the viewer experience.

Business Models: Live vs. VOD

Ari Piparo (04:35):
"Is there a difference in the business model for Live vs VOD?"

Paige Billings (04:40):
"To some extent. Currently, live content is sold as part of the linear package with premium CPMs. As we move towards more automation and programmatic buying, it will be interesting to see how the value is preserved without getting lost in open auction bid requests. We might witness more guarded biddable conversations to maintain the premium nature of live ads."

Paige discusses the distinct business models for live streaming compared to Video on Demand (VOD). Live streaming commands higher CPMs due to its premium nature, especially in sports. The shift towards programmatic advertising introduces opportunities and challenges in maintaining the value and exclusivity of live ad placements.

Innovative Ad Formats in CTV

Ari Piparo (06:30):
"What's Magnite been doing to spice up the creative side?"

Paige Billings (06:30):
"We're supporting various ad formats like tiles and pause ads to better monetize different types of content. Tiles, which are static images on the home screen, command higher CPMs due to their high engagement. We're also exploring new engagement models that publishers want to experiment with, ensuring that advertisers have creative and effective options in the CTV space."

Magnite is actively enhancing the creative landscape of CTV by introducing and supporting innovative ad formats. Tiles and pause ads are prominent examples, offering advertisers unique ways to engage viewers without disrupting their content consumption.

Pause Ads: A Closer Look

Ari Piparo (07:41):
"How much excitement is there around the pause ad format?"

Paige Billings (07:41):
"There's a lot of buzz around pause ads. They offer a new opportunity in CTV by presenting a display ad when a user pauses the content. Unlike traditional ads, pause ads leverage the viewer's intent to interact, allowing for engaging and actionable advertising without the intrusion of audio."

The pause ad format is gaining popularity as it aligns with viewer behavior, providing a non-intrusive way to deliver ads. By appearing when the viewer pauses the content, these ads capitalize on moments of user interaction, enhancing engagement without being disruptive.

Technical Implementation of New Ad Formats

Ari Piparo (08:25):
"From a technical perspective, when an OEM wants to implement a new ad format, is it a big lift, and how does Magnite assist them?"

Paige Billings (08:25):
"Implementing new ad formats can be complex, especially with varying app capabilities. We focus on basic implementations of widely understood formats while enabling publishers to experiment with emerging technologies. Our goal is to create an ecosystem where publishers can easily adopt and test new ad formats without significant technical overhead."

Magnite recognizes the challenges OEMs face in integrating new ad formats due to the diversity of app capabilities. The company aims to simplify this process by providing foundational support and fostering an environment conducive to innovation and experimentation.

AI in Ad Creation: Opportunities and Challenges

Ari Piparo (09:41):
"There's a lot of talk about using AI to create ads. What are your thoughts?"

Paige Billings (09:41):
"AI makes ad creation more accessible and cost-effective. However, maintaining TV-quality standards and brand image is crucial. Publishers have strict quality controls, so while AI can generate numerous creatives, there needs to be a balance to ensure quality and consistency."

AI presents significant opportunities in automating and scaling ad creation. Nonetheless, it also introduces challenges in maintaining the desired quality and brand integrity, necessitating careful oversight and quality assurance.

OEMs and Data Control in CTV

Ari Piparo (10:29):
"What's the general vibe around OEMs right now?"

Paige Billings (10:43):
"OEMs are our fastest-growing customer segment, especially with partnerships like Walmart and Vizio. They are doubling down on their unique first-party data, harnessing ACR (Automatic Content Recognition) to gain comprehensive insights across user interactions. OEMs are focused on protecting this data and ensuring it doesn't leak into walled gardens, maintaining control over their data ecosystems."

OEMs play a pivotal role in the CTV ecosystem, leveraging proprietary data to enhance targeting and personalization. Their focus on data protection and ecosystem control underscores the importance of data privacy and security in the evolving CTV landscape.

Commerce Media Integration in CTV

Ari Piparo (18:35):
"Do you see commerce media coming to TV and how do you see that playing out?"

Paige Billings (18:43):
"Commerce media is definitely here, with Walmart-Vizio as a prime example. Walmart's rich data sets enable them to create more relevant and shoppable ad experiences. Imagine ads that allow users to order products directly through their TV remote, seamlessly integrating shopping into the viewing experience."

The integration of commerce media into CTV represents a significant advancement, enabling interactive and shoppable ads that bridge the gap between content consumption and instant purchasing. Partnerships like Walmart-Vizio exemplify the potential for streamlined and engaging commerce experiences within the CTV framework.

Data Privacy and Regulation Challenges

Ari Piparo (12:32):
"Do you see more power accruing to the sell side because of data control dynamics?"

Paige Billings (12:32):
"Absolutely. Customer acquisition on the sell side is expensive, and OEMs are keen to protect their data from leaking. Privacy regulations are tightening, especially regarding IP addresses, which are key identifiers in CTV. This means data will largely remain on the sell side, ensuring that user information is safeguarded within trusted ecosystems."

Data privacy remains a critical concern in CTV, with increasing regulations and the need to protect user information reinforcing the dominance of sell-side entities. OEMs are at the forefront of this effort, ensuring that data remains secure and within their controlled environments.

The Future of Ad Experiences in CTV

Paige Billings (20:47):
"I hope that 2025 is really a year that we start to see a shift from the linear ad experience to something different and better. There's a lot of room for improvement in creating more interesting and relevant ad experiences instead of just playing multiple short videos."

Looking ahead, the goal is to transcend traditional linear ad experiences, fostering more interactive and meaningful engagements between advertisers and viewers. Innovations in ad formats and integration with commerce media are poised to redefine how ads are delivered and experienced on CTV platforms.

Conclusion

The conversation with Paige Billings paints a promising picture for CTV in 2025. As the industry matures, technological advancements and innovative ad formats are set to enhance both viewer experiences and advertiser efficacy. However, challenges related to data privacy, technical implementation, and maintaining quality standards remain pivotal considerations. Magnite, under Paige's leadership, is strategically navigating these complexities, positioning itself at the forefront of the evolving CTV landscape.

Notable Quotes:

• Paige Billings (03:10):
  "We're really starting to mature our offerings in CTV, moving past the initial 'just make it work' phase."

• Paige Billings (07:41):
  "Pause ads leverage the viewer's intent to interact, allowing for engaging and actionable advertising without the intrusion of audio."

• Paige Billings (09:41):
  "AI makes ad creation more accessible and cost-effective, but maintaining TV-quality standards is crucial."

• Paige Billings (20:47):
  "I hope that 2025 is the year we start to see a shift from the linear ad experience to something different and better."

This comprehensive summary encapsulates the key discussions and insights shared by Paige Billings on the future of Connected TV. For those interested in the nuanced developments within the CTV space, this episode offers valuable perspectives on technological advancements, business models, and the evolving interplay between data privacy and advertising innovation.