Next in Media: Is AI Going to Ruin the Internet and Kill Journalism? – Detailed Summary
Released on February 11, 2025, "Next in Media" hosted by Mike Shields delves into the transformative effects of technology and data on the media, marketing, and advertising industries. In this episode, Shields engages in a comprehensive discussion with David Kosman, CEO of the newly merged Teeds, exploring the implications of their merger with Outbrain and the broader impact of Artificial Intelligence (AI) on the internet and journalism.
1. Introduction to the Teeds-Outbrain Merger
The episode kicks off with Mike Shields introducing David Kosman, highlighting the recent merger between Teeds and Outbrain—a consolidation aimed at strengthening their foothold in the digital advertising landscape.
Key Points:
- Merger Motivation: David Kosman emphasizes the strategic alignment between Teeds and Outbrain, aiming to combine strengths to become a scale leader with approximately $1.7 billion in ad revenues.
- Historical Context: The merger wasn't the first attempt; previous attempts were close but didn't materialize until Altice's decision to sell assets facilitated the union.
Notable Quote:
“Combining Teeds, which is strong in performance and native advertising, with Outbrain, which invented the space for video, positions us as a scale leader capable of delivering both performance and branding for a wide range of brands.”
— David Kosman [01:48]
2. Defining the New Teeds
Shields probes into what the newly merged entity represents, seeking clarity on their market positioning compared to previous identities as separate entities.
Key Points:
- Brand Evolution: The new Teeds transcends the capabilities of both Teeds and Outbrain, focusing on a broader service offering rather than mere consolidation.
- Exclusive Inventory Control: The merger grants Teeds exclusive access to key publisher inventories, distinguishing them from typical ad networks by owning strategic ad real estate.
Notable Quote:
“We are not an ad network because a networker needs to bid on placements. We have strategic relationships and exclusive access to publisher inventory, which allows us to offer higher quality monetization for premium publishers.”
— David Kosman [05:45]
3. Market Position and Unique Selling Propositions
The discussion delves into how the merger enhances Teeds' market position, particularly in delivering full-funnel marketing solutions that encompass both performance and branding.
Key Points:
- Full-Funnel Outcomes: Combining Outbrain’s performance-driven approach with Teeds' branding capabilities creates a unique value proposition for advertisers.
- CTV Integration: Teeds has ventured into Connected Television (CTV), contributing over 10% of their revenue, and leveraging exclusive placements on OEM home screens.
Notable Quote:
“The ability to dynamically allocate campaigns between digital and CTV is a great asset that sets us apart.”
— David Kosman [07:52]
4. Addressing Industry Perceptions and Challenges
Shields raises concerns about prevalent stigmas associated with Teeds and Outbrain's ad placements, questioning their impact on brand perception and the quality of advertising formats.
Key Points:
- Reputation Management: Kosman acknowledges past perceptions but asserts that Teeds has repositioned itself to focus on premium advertising, distancing from less favorable associations.
- In-Stream vs. Outstream Debate: The merger helps clarify inventory classifications, reducing misconceptions about the value of different ad formats.
Notable Quote:
“What was once misclassified as in-stream was actually outstream, and Teeds never misrepresented their inventory. This clarity helps eliminate the perception that certain inventory is less valuable.”
— David Kosman [09:37]
5. The Role of AI in Media and Publishing
A significant portion of the conversation centers on the impact of AI on the internet's future and journalism, exploring both threats and opportunities.
Key Points:
- AI’s Dual Impact: AI poses risks to traffic and monetization but also offers opportunities for enhancing efficiency and creative processes.
- Content Integrity: Kosman expresses confidence that professionally produced, curated content remains resilient against AI-generated content, especially in news and evergreen categories.
- Industry Collaboration: Emphasizes the need for industry-wide efforts to ensure original content creators are fairly compensated in an AI-driven landscape.
Notable Quotes:
“AI provides a tremendous amount of opportunity to do things faster and better, from performance to creative aspects like titles and headlines.”
— David Kosman [16:24]
“Our mission is to help the publishing industry thrive, ensuring that professionally produced content remains valuable and accessible.”
— David Kosman [17:10]
6. Connected Television (CTV) Expansion
Shields inquires about Teeds' strategies in the competitive CTV space, a domain traditionally dominated by established players with distinct buying mechanisms.
Key Points:
- Unique CTV Formats: Teeds leverages exclusive placements on OEM home screens, allowing for innovative ad formats that differ from standard streaming ads.
- Omnichannel Campaigns: The merger enables dynamic allocation of advertising budgets across digital and CTV platforms, providing advertisers with flexible and integrated campaign options.
- SME Focus: Teeds aims to make CTV more accessible and affordable for small to medium enterprises (SMEs), enabling broader adoption through efficient video creation and AI-driven targeting.
Notable Quote:
“Advertising budgets are shifting significantly from linear to CTV, and we want to be there to support that transition with unique formats and dynamic allocation capabilities.”
— David Kosman [22:43]
7. Future Directions and Execution Plans
In closing, Kosman outlines the immediate priorities post-merger, emphasizing execution, cross-selling opportunities, and leveraging the combined strengths of Teeds and Outbrain.
Key Points:
- Execution Focus: With regulatory hurdles cleared and organizational structures in place, Teeds is set to implement strategic plans and realize the merger's full potential.
- Cross-Selling Opportunities: Leveraging Teeds' and Outbrain's existing client bases to introduce CTV solutions to SME advertisers.
- Investment in AI: Continued investment in AI talent and technologies to enhance media buying optimization and campaign effectiveness.
Notable Quote:
“The next few months are about execution and seeing the benefits of cross-selling opportunities, particularly bringing CTV solutions to our SME clients.”
— David Kosman [25:13]
8. Conclusion
Mike Shields wraps up the episode by acknowledging the substantial steps Teeds is taking to navigate the evolving media landscape, particularly in the face of AI advancements and shifting advertising paradigms. The conversation underscores the importance of strategic mergers and technological integration in sustaining and growing within the competitive media and advertising industries.
Final Thoughts:
- The Teeds-Outbrain merger represents a significant consolidation aimed at enhancing market competitiveness through combined strengths in performance, branding, and CTV.
- AI remains a double-edged sword, presenting both challenges and opportunities that Teeds is proactively addressing through innovation and industry collaboration.
- The focus on accessible CTV solutions for SMEs highlights Teeds' commitment to broadening their service offerings and supporting diverse advertiser needs.
For those interested in the evolving dynamics of media, marketing, and advertising, this episode of "Next in Media" offers valuable insights into how industry leaders like David Kosman are maneuvering through technological disruptions and strategic mergers to shape the future of the open internet and journalism.