RE: Pace of Change is Getting Scary31 Jan 2021 09:28
Hi Rusty - exactly with you there on the potential etc. The best parts of the presentation are the slide at 3.30 with a full explanation of their system and why having the full stack, which is fully open, benefits everybody – anybody in the system can get from any point A to any point B via Tremor, without having to directly contract with any other supplier. Advertisers can get in directly, as can top tier advertising agencies, they are connected to other DSPs and other SSPs, so in theory can pull in customers from any where on both sides and match up supply and demand.
Data privacy seems not to be a concern to them, what there is should not hinder the model. After all, brands will have to advertise on CTV to replace normal TV. What will all companies do if there is no TV adverts! A safe and acceptable way of moving this forwards will have to be found. On CTC, even without ‘cookies’, they must know what programmes you watch, and must know where you live – hence, they have marketing data, they will know your social-economic group (A, B, C etc) and can profile your hobbies / interests. They have studied marketing data for decades, personality types give rise to very predictable (sub conscious) behaviour patterns, they have us all nailed down to a T. All that stuff works, which is why they do it. Advertisers, for obvious reasons, want targeted adverts.
The other telling point is in Offer Drucker’s closing remarks about private market places and self service. He clearly states that they have not really launched these yet, and hints that so far they were just trialling them. In 2021 they will launch them in a very heavy / stronger way. From company trading statements:
First Half Second Half 2020 Total
CTV 28 67 95
PMP 14 41 55
SSP 8 27 35
Totals 50 135 185
The growth in PMP and SSP tell it all. And we are missing a lot of H1 revenue because of Covid. I think we could be looking at $650m to $700m total revenue for 2021, up from $400m 2020. PMP & SSP will be bigger than CTV directly, it’s income that comes directly from the agencies, brands and publishers. Tremor is clearly differentiated from competitors and has a model which, at least appears to me, is what their customers and suppliers prefer. The risk is what boundaries and walls the big TV companies put in place, against each other – but they will want and need ad revenue. They can’t live in a closed bubble. Market forces will force a more open market ... eventually.
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