SANTA MONICA, CA — Once upon a time, when we talked about video advertising, we talked about a dearth of quality ad inventory supply.
Over time, that has emerged to be anything but. Now a glut of supply is a problem facing many.
In this video interview with Beet.TV, Jake Richardson, Head of Connected TV, Moloco, describes the issue.
The Transition from Scarcity to Oversupply
Richardson explains: “What we’ve seen in every channel as it’s come online to digital is sort of the same trajectory. First, you’ve got scarcity and everyone wants in, so demand dollars flood in.”
Richardson says this leads to a rash of ad supply, creating an oversupply scenario where differentiation becomes key.
“It’s not just enough that I ran (an ad) against really premium content, whether it’s Netflix or NBC or whomever. I also want to get something in addition to knowing that my content ran against Patrick Mahomes or whatever it happens to be.”
The Need for Measurement Accountability
As the shift from linear TV to digital continues, Richardson highlights a pivotal concern for advertisers: measurement accountability.
“We’ve got to figure out how we build an antidote to that,” he says. “It’s no longer enough that we just do some reach and do some frequency capping and make sure that you’ve got this holistic GRP instead. We’ve got to be able to provide something that sits a little further down funnel.”
Maintaining a balance between branding and performance advertising is crucial, especially with the entrance of new advertisers into the market. Richardson believes that performance advertising teams will increasingly influence branding teams, particularly in the context of connected television.
Hello @Nasdaq! 👋🏽 What a delight to be featured in recognition of Moloco’s latest investors and Moloco’s latest valuation at more than $2 billion. Our commitment to helping companies grow through the power of machine learning is stronger than ever. 🚀 pic.twitter.com/jsrVnutMWL
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Moloco built a machine learning platform for seven years before launching a mobile app demand-side platform (DSP) DSP to help app developers drive profitable ad spend.
The company has also built a retail media offering and a streaming ad server using the same ML infrastructure.
The Crucial Role of Creative Content
Despite the attention on pricing, CPMs and other technical aspects, Richardson emphasizes the importance of creative content.
“It is one of the most important parts of this industry,” he says, adding that advertisers are increasingly driving towards measurable parts of the funnel.
He concludes, “The hope is that they’ll find an engaging way, and they always do. The advertisers always do find an engaging way to drive you towards an action that keeps you engaged.”
You’re watching Beet.TV’s coverage of Beet Retreat Santa Monica. This series and event is sponsored by Experian, Moloco and OpenX. For more videos from the series, please visit this page.