Marketecture Podcast: Episode 111 Summary Featuring Ross Benes on eMarketer and Juggalos

Release Date: February 21, 2025

Introduction

In Episode 111 of the Marketecture Podcast, hosts Ari Paparo and Eric Franchi engage in an insightful conversation with Ross Benes, a Senior Analyst at eMarketer. With over seven years at eMarketer, Ross brings a wealth of knowledge on advertising trends, data methodologies, and the evolving landscape of digital marketing. Additionally, Ross shares his unique personal interests, including his admiration for the Insane Clown Posse and his role as an author.

eMarketer Company Overview

[04:08]
Ross Benes provides an overview of eMarketer, highlighting its ownership by Axel Springer and its global footprint. "It's a market research company that creates a lot of data and charts that you guys love to use." Ross mentions the rebranding journey from Insider Intelligence back to eMarketer and emphasizes the company's expansive workforce spread across the U.S., Argentina, the Philippines, and the UK, underscoring its increasing global presence.

eMarketer's Methodology

[05:10]
When discussing eMarketer's research methods, Ross elaborates on the blend of original research and meta-analysis. "Some statistics, there's a plethora of existing research and we can kind of just do a meta-analysis of that." For novel or rapidly changing metrics, like upfront ad spending forecasts, Ross outlines a more hands-on approach involving background interviews and multiple data sources. This methodological transparency ensures clarity and reliability in their reports.

Clarity and Accuracy in Reporting

[06:10]
Ari commends eMarketer for their detailed footnotes, which clarify data interpretations. "Whether you're right or not is a totally different question. But there are plenty of folks who say, like, programmatic is $100 billion market. And what do they mean by programmatic? That could be anything. And you, you folks actually say what you mean on each graph, which is highly appreciated." Ross acknowledges the effort behind these annotations, noting, "me and other analysts spend a lot of time writing those little notes."

Common Misinterpretations and Challenges

[07:07]
Ross addresses frequent misconceptions, particularly regarding Connected TV (CTV) versus linear TV ad spending. "Linear is still more than double CTV." He clarifies that while projections often suggest CTV will surpass linear TV spending, the current reality is that linear remains dominant, albeit with CTV steadily growing. Additionally, Ross highlights misreported statistics, such as Disney's subscriber counts being erroneously attributed to exceed Netflix by inflating metrics.

Programmatic Advertising Insights

[11:38]
The discussion shifts to programmatic advertising, where Ross estimates the U.S. market at $181 billion, constituting 90% of digital ad spending. He breaks down the fragmentation within the market, noting the presence of numerous companies like OpenXS and Index Exchange. Ross elaborates, "There's a lot of companies in the Lumascape," emphasizing the competitive and dispersed nature of the programmatic landscape.

Notable Quote:
"Programmatic is 90% of display, which is $180 billion in the U.S." – Ross Benesh [11:30]

Retail Media Analysis

[17:24]
Ross delves into the retail media sector, spotlighting Amazon's dominance, which accounts for three-quarters of the market. He acknowledges Walmart's burgeoning ad business, now valued at $4.4 billion with a 27% year-over-year growth, positioning it as the clear runner-up. Despite the existence of around 80 retail media networks (RMNs), their collective market share remains modest, indicating a duopoly between Amazon and Walmart.

Notable Quote:
"Amazon is 3/4 of the market still. And there's like we, we estimate about 80 retail media networks now." – Ross Benesh [18:52]

AI in Advertising

[19:40]
Ross discusses the multifaceted impact of Artificial Intelligence (AI) on the advertising industry. Internally, eMarketer leverages AI for streamlining processes and enhancing internal communications. Externally, AI is disrupting media buying and transforming various aspects of the advertising stack. Ross urges caution against overhyping AI's immediate financial impact, emphasizing the need for strategic adaptation as the technology evolves.

Notable Quote:
"You have to be cognizant of it in some way. But that strategy is going to evolve a lot." – Ross Benesh [20:48]

YouTube TV Statistics Confusion

[29:28]
The hosts raise a query about conflicting reports on YouTube's share of TV watching. Ross clarifies that according to Nielsen's metrics, YouTube accounts for approximately 10% of all TV viewing, excluding YouTube TV. This distinction highlights the challenges in accurately measuring and interpreting media consumption data across different platforms.

Ad Safety and CSAM Efforts

[32:54]
Discussing industry responses to Child Sexual Abuse Material (CSAM), Ross highlights DoubleVerify's proactive measures. These include labeling CSAM and high-risk content, avoiding peer-to-peer (P2P) sharing and streaming categories, and collaborating with law enforcement and child safety organizations. Ross appreciates these efforts, noting the importance of industry leaders taking decisive action.

Notable Quote:
"They have to be proactive. If they just sit around getting haymakers from all sides, it's not great for their business." – Ross Benesh [32:54]

CTV Market Dynamics and CPM Trends

[33:26]
Ross analyzes recent trends in Connected TV (CTV) advertising, pointing out a decline in Cost Per Mille (CPM) rates due to an influx of ad inventory from platforms like Amazon Prime Video and Netflix. "Average CPMs are going down because inventory is increasing." He explains that while anchor CPMs are decreasing, total ad spending continues to rise, benefiting the overall industry.

Notable Quote:
"If total spending goes up, that's good for the industry. The CPM is going to come down." – Ross Benesh [35:12]

Netflix's Potential for Sports Bidding

[36:10]
A recent rumor suggests Netflix may bid for NFL broadcasting rights. Ross clarifies that while Netflix has expressed interest, actual participation is unlikely in the immediate future due to existing contracts extending until 2029 or 2030. However, he speculates that Netflix may eventually pursue sports rights as part of its growth strategy, despite current assurances to the contrary.

Movement for the Open Web

[39:25]
The conversation touches on the Movement for the Open Web, an anti-Google consortium founded by James Rosewell of 51 Degrees. Ross describes it as an advocacy group aiming to challenge Google's dominance and influence over web standards and advertising technologies. The group has recently criticized Google's Sandbox APIs, questioning their efficacy compared to traditional cookie-based attribution.

Personal Insights and Ross's Authorship

[22:26]
Beyond his analytical work, Ross shares his passion for the Insane Clown Posse and his role as an author. His latest book, "1999: The Year Low Culture Captured America," explores how 1990s pop culture phenomena continue to influence contemporary society. Ross humorously refers to himself as a "Juggalo," reflecting his deep appreciation for the group's enduring fanbase and cultural impact.

Notable Quote:
"I've never been to the Gathering, but like, if the great Malinko album comes on, I turn that shit up." – Ross Benesh [24:20]

Conclusion

The episode concludes with Ross Benesh promoting his book and sharing final thoughts on the dynamic nature of the advertising and marketing industries. He emphasizes the importance of accurate data interpretation and the ongoing evolution driven by technology and consumer behavior.

Key Takeaways

• eMarketer's Role: A pivotal market research entity providing transparent and reliable advertising data.
• Market Fragmentation: Programmatic advertising remains highly fragmented despite major players like Amazon and Walmart dominating retail media.
• AI's Dual Impact: AI is both an internal tool for efficiency and a disruptive force in advertising strategies.
• CTV Trends: Increased inventory is driving down CPMs, making CTV more accessible to a broader range of advertisers.
• Data Accuracy: Misinterpretations of data, especially concerning emerging platforms like YouTube TV, highlight the need for meticulous analysis.

Notable Quotes with Timestamps

• "Programmatic is 90% of display, which is $180 billion in the U.S." – Ross Benesh [11:30]
• "Amazon is 3/4 of the market still. And there's like we, we estimate about 80 retail media networks now." – Ross Benesh [18:52]
• "You have to be cognizant of it in some way. But that strategy is going to evolve a lot." – Ross Benesh [20:48]
• "They have to be proactive. If they just sit around getting haymakers from all sides, it's not great for their business." – Ross Benesh [32:54]
• "If total spending goes up, that's good for the industry. The CPM is going to come down." – Ross Benesh [35:12]
• "I've never been to the Gathering, but like, if the great Malinko album comes on, I turn that shit up." – Ross Benesh [24:20]

This comprehensive summary encapsulates the key discussions and insights from Episode 111 of the Marketecture Podcast, providing valuable information for listeners and those interested in the advertising and marketing industries.