The Current Podcast: Jeff Green on How The Trade Desk’s New OS Can Improve the CTV Ecosystem

Release Date: November 20, 2024

In this enlightening episode of The Current Podcast, hosts Damian Fowler and Ilyse Liffreing engage in a deep and comprehensive conversation with Jeff Green, the founder and CEO of The Trade Desk, a trailblazer in the digital advertising realm. Celebrating its 15th anniversary this month, The Trade Desk has been at the forefront of transforming the advertising landscape, particularly within the Connected TV (CTV) ecosystem. Jeff Green shares invaluable insights into the company's journey, the challenges and opportunities in the ad tech industry, and the groundbreaking introduction of their new operating system, Ventura.

1. Jeff Green’s Journey and Founding of The Trade Desk

Jeff Green's venture into digital advertising began in 2003 with the establishment of ADECN, an online ad exchange that Microsoft later acquired. This foundational experience positioned him perfectly to recognize and seize further opportunities in the ad tech space.

Jeff Green [01:06]: "The Trade Desk is the first thing I've ever created that was not built to sell."

In 2009, amidst the global financial crisis, Green founded The Trade Desk with the mission to enhance price discovery in advertising—a process akin to that in the equities market. He observed that while digital transactions were revolutionizing other markets by making them more efficient and transparent, the advertising industry still grappled with valuing ads accurately and transacting them efficiently.

Jeff Green [01:42]: "Advertising has really struggled with price discovery. What is this ad worth? And how can I describe it better so that we can transact it more efficiently and assign value to it more easily?"

2. Evolution of the Advertising Market and Price Discovery

Over the past 15 years, The Trade Desk has made significant strides in making premium content accessible within the open internet ad market. However, Green acknowledges that the industry still has a long way to go in fully solving price discovery challenges.

Jeff Green [03:26]: "We've got a long way to go still as an industry. We're better, we're way better. And we've got some great case studies, if you will, but there's still a lot that has to be done."

He critiques major players like Google for impeding market evolution due to their sheer size and complex acquisitions, such as DoubleClick, which he believes have slowed progress and diverted the industry in unproductive directions.

3. The Global 100 Publishers Report and the Rise of the Premium Internet

Earlier in the year, The Trade Desk released the Global 100 Publishers Report, sparking significant conversation about the ascendancy of premium content on the open internet. Green explains the intent behind the report was to highlight the evolution from merely monetizing "the crumbs of the Internet" to capitalizing on high-quality media content.

Jeff Green [04:52]: "We wanted to showcase how great the open Internet has become, moving from leftovers to all of the very best parts of media."

He emphasizes that what he terms the "premium Internet" is not a separate entity but the pinnacle of the open Internet, comprising top-tier content like Hollywood movies, acclaimed TV shows, live sports, and quality journalism.

Jeff Green [07:30]: "If you get the most premium part of the open Internet to go in the right direction, the rest of it will follow."

4. Supply Chain Efficiency and the Introduction of Ventura

One of the episode's focal points is The Trade Desk's new operating system, Ventura, designed to revolutionize the CTV supply chain. Green details how inefficiencies in the current supply chain have hindered profitability and content discovery, especially for emerging content owners amidst escalating streaming wars.

Jeff Green [19:32]: "Ventura is our opportunity to change the overall system. We're uniquely positioned to improve the supply chain of television and CTV."

Ventura aims to streamline the flow of money and data within the CTV ecosystem, thereby enhancing the advertising experience for both publishers and advertisers. This initiative is not just about optimizing operations but also about fostering a healthier, more transparent market where high-quality content can thrive.

5. Benefits to Publishers, Advertisers, and Consumers

Green articulates how Ventura stands to benefit multiple stakeholders:

• Publishers: More efficient supply chains mean higher profitability and the ability to invest in more quality content. Companies like Disney, Peacock, and Paramount, which are striving for both growth and profitability, can significantly benefit from improved CPMs (Cost Per Mille) and sell-through rates.

  Jeff Green [22:56]: "Nobody benefits more from a more effective supply chain than the content owners."

• Advertisers: A transparent and efficient market empowers advertisers with better price discovery and choice, ensuring their ad spend is more effective and relevant.

  Jeff Green [24:50]: "Advertisers will always win in a more efficient market because there is more supply than there is demand."

• Consumers: Enhanced discovery mechanisms will reduce the time users spend searching for content, while more relevant and fewer ads will improve the overall viewing experience.

  Jeff Green [26:48]: "Consumers will pay less for content, either seeing fewer ads that are more relevant or paying less in dollars for their subscriptions."

6. Impact of Google’s Antitrust Trial

The discussion also delves into the ramifications of Google's antitrust trial on the ad tech landscape. Green believes that regardless of the trial's outcome, it has catalyzed a necessary shift towards greater market integrity and transparency.

Jeff Green [17:32]: "Google has to change and that ecosystem has to change. And I think it's going to."

He highlights the challenges Google faces in adapting without compromising its market stance, ultimately validating the need for a more equitable open internet.

7. The Trade Desk’s Principles and Vision for the Future

Green reiterates The Trade Desk's commitment to maintaining an open ecosystem devoid of inventory ownership, ensuring fairness and efficiency. The introduction of Ventura aligns with this vision by promoting a transparent and collaborative marketplace where all parties can thrive without obfuscation.

Jeff Green [30:54]: "We want to create a marketplace that makes content owners thrive, that also makes advertisers do better."

He is optimistic about the industry's ability to adopt a more ecosystem-centric mindset, where mutual benefits drive growth rather than zero-sum competition.

Jeff Green [32:44]: "There are efficiencies to be gained in the market where everybody can benefit. Consumers will have a vibrant, thriving ecosystem."

8. Conclusion and Final Thoughts

As the conversation wraps up, Green emphasizes the importance of integrity and transparency in fostering a healthy advertising ecosystem. He draws parallels to the global financial crisis, underscoring the necessity of clear value attribution and honest dealings to prevent systemic failures.

Jeff Green [34:08]: "It's about aligning our interests with advertisers, doing better by them, and ensuring the ecosystem thrives with integrity."

Damian Fowler concludes the episode by expressing gratitude for Jeff's insights, highlighting the profound impact of The Trade Desk's initiatives on the future of digital advertising and CTV.

Key Takeaways:

• Price Discovery: Essential for a transparent and efficient ad market, still an ongoing challenge.
• Ventura Operating System: Aims to streamline the CTV supply chain, benefiting publishers, advertisers, and consumers.
• Premium Internet: The elevation of high-quality content within the open internet, asserting that improving the top-tier content benefits the entire ecosystem.
• Market Integrity: Lessons from Google's antitrust trial reinforce the need for transparency and fairness.
• Ecosystem-Centric Approach: Emphasizing mutual benefits over competitive zero-sum strategies to foster industry-wide growth and sustainability.

Notable Quotes:

• "Advertising has really struggled with price discovery. What is this ad worth?" — Jeff Green [01:42]
• "Nobody benefits more from a more effective supply chain than the content owners." — Jeff Green [22:56]
• "We want to create a marketplace that makes content owners thrive, that also makes advertisers do better." — Jeff Green [30:54]
• "Consumers will pay less for content, either seeing fewer ads that are more relevant or paying less in dollars for their subscriptions." — Jeff Green [26:48]

This episode serves as a crucial exploration of the current challenges and future opportunities within the digital advertising and CTV landscapes. Jeff Green's visionary outlook and The Trade Desk's innovative solutions, particularly Ventura, position the company as a pivotal player in shaping a more efficient, transparent, and equitable ad ecosystem.