Marketecture Podcast: Episode 121 Summary

Release Date: May 2, 2025
Title: Episode 121: David Kostman on the new Teads, and what’s next for the Open Web. Plus a Possible round-up and Apple’s big antitrust loss.

Introduction

In Episode 121 of the Marketecture Podcast, hosts Ari Paparo and Eric Franchi delve into significant developments within the advertising and marketing industries. The episode features an insightful interview with David Costman, the newly appointed CEO of Teads, followed by a comprehensive round-up of recent industry events, including the Possible conference and the landmark antitrust ruling against Apple.

Interview with David Costman: The Future of Teads and the Open Web

[03:36] Welcome and Introduction
Ari introduces David Costman, formerly the CEO of Outbrain for over a decade, now at the helm of Teads following its merger with Outbrain. David expresses enthusiasm about combining both entities to create a leading platform on the open Internet.

[03:50] Differences in Leadership Roles
David highlights the fresh opportunities arising from the merger, emphasizing the integration of branding and performance on an omnichannel basis, including Connected TV (CTV) and open Internet platforms.

[05:04] Synergies Between Teads and Outbrain
David discusses the complementary nature of the two businesses:

• Advertiser Base: "All the advertisers are looking, even the most premium brand advertisers, they're looking at consideration and the end. They want to drive a conversion of one kind or another" ([05:15]).
• Publisher Relationships: Enhanced monetization through combined data signals and premium demand.
• Cost Savings and Upside Potential: The merger is projected to generate synergies worth $60-75 million ([06:51]).

[07:42] Evolving Publisher Dynamics
With the companies heading in different directions, David notes improved value propositions for publishers:

• Open Internet Focus: "Publishers... want to work with one partner that can service them on a bigger part of the page" ([07:42]).
• Enhanced Monetization: Increased data signals lead to better performance and higher revenue for publishers.

[09:32] Unified Metrics and Reporting
David explains the integration of performance and branding metrics:

• Short-term: Joint selling efforts with separate systems.
• Long-term: Unified reporting system integrating capabilities from both Outbrain and Teads, expected within 12-24 months ([12:30]).

[12:09] Brand Formats and Creative Integration
Introducing "brand formats," David envisions a seamless blend of branding and performance advertising. For example, placing a video in the middle of an article to measure user engagement and drive calls to action ([10:54]).

[15:12] The Future of the Open Web
David affirms the continued growth and monetization potential of the open Internet:

• AI Integration: "AI can be very important" for enhancing user engagement and advertiser performance ([15:12]).
• Content Evolution: Shift towards video content while maintaining original journalism.

[17:48] Financial Insights and Debt Strategy
David provides an overview of Teads’ financials and the strategic use of debt for the merger:

• Media Spend: Approximately $1.6 billion in total media spend ([17:55]).
• Debt Utilization: Conservative leverage ratios with less than three times EBITDA, financing a $900 million deal through high-yield bonds ([18:20]).

[20:08] Rebranding to Teads
David discusses the rationale behind renaming the merged entity to Teads:

• Emphasis on a premium, data-driven, and performance-oriented platform.
• "The logo has been redesigned, the whole messaging has been redesigned" to resonate with target segments ([20:08]).

[21:53] Conclusion of Interview
Ari and Eric wrap up the discussion with light-hearted anecdotes, highlighting the strategic and cultural alignment achieved through the merger.

Refresh: Insights from the Possible Conference

[23:03] Post-Conference Reflections
Ari and Eric share their experiences attending the Possible conference, noting its size and the vibrant presence of brands and agencies:

• Attendance: "I heard 5,000 attendees" ([23:30]).
• Networking Challenges: Overcrowded spaces leading to logistical issues like finding food and managing conversations.

[24:53] Economic Sentiments
The hosts observe a generally positive outlook for the first half of the year, with concerns beginning to surface for the second half as economic impacts loom.

[25:16] Brand vs. AdTech Focus
Discussions highlight the coexistence of established brands and innovative startups within the adtech ecosystem:

• Established Brands: Focusing on incremental growth and integrating solutions around retail and CTV.
• Startups: Developing disruptive technologies with potential to change the landscape.

News Round-Up

Antitrust Ruling Against Apple

[45:29] Epic’s Victory
Ari explains the recent antitrust decision favoring Epic against Apple:

• App Store Policies: Apple’s mandate requiring in-app purchases through its system, taking a 30% commission.
• Judicial Ruling: "Effective immediately, that all goes away. You could do purchases outside of the apps" ([47:21]).
• Implications: Enhanced flexibility for app developers and potential long-term benefits for user acquisition and innovation, though limited immediate impact on Apple’s revenue.

Microsoft’s Ad Revenue Surge

[32:35] Microsoft’s Earnings
Eric highlights Microsoft’s robust ad revenue, reaching $20 billion annually:

• Growth Drivers: Expanding Bing and LinkedIn functionalities.
• AI Integration: Strong execution with Copilot tools embedded in development platforms like GitHub ([33:14]).

Meta’s AI-Focused Growth

[33:14] Meta’s Performance
Meta reports strong earnings with an optimistic outlook for Q2 despite economic uncertainties:

• AI Emphasis: Mark Zuckerberg underscores AI’s role in making advertising a larger share of global GDP ([35:00]).
• Contrasting Snap: While Meta thrives, Snap issues an earnings warning, suggesting a divergent outlook within the industry.

Google’s Performance Max (PMax) Adjustments

[36:46] Increased Transparency
Google responds to advertiser demands by enhancing transparency in PMax:

• Feature Enhancements: More clarity on channels, search terms, and creative asset performance.
• Strategic Shifts: Aims to retain advertisers by transitioning from manual to automated optimization systems ([37:24]).

Trade Desk’s Take Rate Discussions and CTV Dynamics

[38:20] Take Rate Conversation
James Hercher’s analysis on Trade Desk’s take rate in CTV:

• Competitive Pressures: Other platforms like Comcast’s Universal Ads introduce zero buy-side fees, challenging existing models.
• Industry Reaction: Ongoing debates about platform fees and inventory control ([38:20]).

Speculation on Chrome’s Future

[40:07] Potential Spin-Out
Ari discusses rumors about Google potentially spinning out Chrome:

• Possible Buyers: Yahoo and OpenAI express interest.
• Implications: A significant shift in internet infrastructure control, with debates about who could sustainably manage Chrome’s advertising ecosystem ([40:59]).

Apple’s Antitrust Case Overview

[45:29] Epic vs. Apple Ruling
Ari provides a detailed account of the court’s decision against Apple:

• Policy Change: Immediate allowance for side purchases outside the App Store.
• Judicial Stance: Apple’s non-compliance leads to a direct referral of the CFO to the Justice Department for potential criminal charges ([47:21]).

Community Highlights and Shout-Outs

• Startups and Rebrands: Acknowledgment of Springserve’s team launching Swivel, an AI-driven account management tool, and Freewheel’s rebranding from Beeswax DSP to Freebill DSP.
• Networking Anecdotes: Ari shares humorous moments from Possible, highlighting challenges in remembering names and interacting in large networking events.

Conclusion

Episode 121 of the Marketecture Podcast offers a deep dive into the evolving landscape of adtech, spotlighting the strategic merger of Teads and Outbrain under David Costman’s leadership. The hosts also provide valuable insights from the Possible conference and discuss critical industry news, including significant antitrust rulings and major earnings reports. This episode serves as an essential listen for professionals aiming to stay informed about the dynamic changes shaping the advertising and marketing sectors.

Notable Quotes:

• David Costman [05:15]: "All the advertisers are looking, even the most premium brand advertisers, they're looking at consideration and the end. They want to drive a conversion of one kind or another."
• David Costman [07:42]: "Publishers... want to work with one partner that can service them on a bigger part of the page."
• David Costman [10:54]: "Brand formats really reflect the potential of the combined company."
• Ari Paparo [47:21]: "The judge just destroyed them. This happened on Wednesday, I believe the judge came out with a ruling that said, effective immediately, that all goes away."

Resources:

• Marketecture TV: www.marketecture.tv
• Slack Community: Join@adtechGod.com

Stay tuned for next week's episode, where Ari and Eric continue to unpack the latest trends and developments in the advertising and marketing industries.