WEBVTT - MNTN Founder and CEO Mark Douglas Talks Streaming

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>We're going to switch gears now. We're going to talk

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<v Speaker 2>about a topic that has been really impacting a very

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<v Speaker 2>specific part of the market. We're going to talk about

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<v Speaker 2>how streaming has been disrupting traditional business models in linear television,

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<v Speaker 2>and we're going to look here at those advertising spending trends,

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<v Speaker 2>because of course it's impacting how big tech companies approach

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<v Speaker 2>the space as well. Data that emerged justice month from

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<v Speaker 2>Group M shows that the ad industry is estimated to

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<v Speaker 2>have pulled in a trillion dollars in annual revenue for

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<v Speaker 2>the first time, and tech companies are getting a huge

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<v Speaker 2>chunk of it. We're going to bring in Mark Douglas,

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<v Speaker 2>founder and CEO of Mountain, a tech company that specializes

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<v Speaker 2>in TV advertising software. Mark, I think about a lot

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<v Speaker 2>of the discussions we've had with you all year, ones

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<v Speaker 2>that have really surrounded political ad spending, Ones that have

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<v Speaker 2>kind of talked here about the dominance of Amazon and

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<v Speaker 2>Netflix getting into different types of streaming, different types of

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<v Speaker 2>viewing that have helped them capture a little bit more

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<v Speaker 2>of that ad spend. When you think forward to next year,

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<v Speaker 2>what's going to be the new story here. What is

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<v Speaker 2>going to be the latest that we see in terms

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<v Speaker 2>of what seems like a parabolic move in this industry.

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<v Speaker 3>Yeah, well, I think the big thing is that all

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<v Speaker 3>of the major streaming networks are streaming first. Now that

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<v Speaker 3>you could see that, Like in meetings I have with

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<v Speaker 3>a lot of networks during the year, they went from

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<v Speaker 3>what do they do about their linear business to their

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<v Speaker 3>just entirely focused on streaming consider linear legacy business. And

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<v Speaker 3>I think all of them see and why I say, well,

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<v Speaker 3>I mean Disney obviously, Netflix, others see it as a

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<v Speaker 3>real big growth opportunity for the first time and long

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<v Speaker 3>time for the industry. Because this industry has been so

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<v Speaker 3>dependent on a small number of very large advertisments, and

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<v Speaker 3>now that customer base is broadening very.

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<v Speaker 4>Rapidly, what will be the next catalyst for advertising? Obviously

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<v Speaker 4>the election was huge one, but we need to know.

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<v Speaker 3>Well, I think ESPN really going all in on streaming

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<v Speaker 3>that's happening in twenty twenty five.

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<v Speaker 1>I think that's a big deal.

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<v Speaker 3>Sports, any sports content tend to do really well. You

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<v Speaker 3>see Netflix bringing WWE to Netflix, I think it's going

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<v Speaker 3>to be a great moment. And that's only like a

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<v Speaker 3>less than two weeks away, So you're just going to

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<v Speaker 3>see a lot more sports content. I think Disney and

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<v Speaker 3>others are really stepping up in terms that are going

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<v Speaker 3>to step up in terms of the amount of content.

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<v Speaker 3>But it ultimately is all about sports right now.

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<v Speaker 1>Just people. The advertisers just love sports content.

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<v Speaker 2>Okay, there's a specific ad I watched last night. I

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<v Speaker 2>kind of lost my mind a little bit because I

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<v Speaker 2>was like, Wow, wouldn't have thought that this was the

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<v Speaker 2>audience for that market Monday night football. Okay, I'm watching

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<v Speaker 2>it last night, Mark, and all of a sudden, did

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<v Speaker 2>you see this advertisement? The SAP ad about technology, data centers,

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<v Speaker 2>nuclear power and the CHROs and needing to be in

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<v Speaker 2>the conversation? Yeah, you see that a professional audience is

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<v Speaker 2>being targeted through sports. Sports is kind of the vehicle

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<v Speaker 2>for everything. It feels like when you look at some

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<v Speaker 2>of these ads that are being brought to the platforms,

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<v Speaker 2>what does that mean in terms of different companies trying

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<v Speaker 2>to target different audiences. Do you think that that you'll

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<v Speaker 2>see different types of ads going on to these major

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<v Speaker 2>sporting events because they're becoming ever more important to reach people.

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<v Speaker 3>Yeah, So there's two things happening at the same time.

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<v Speaker 3>One is you have some advertisers who are kind of

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<v Speaker 3>still hooked on that big moment. You know, tomorrow you're

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<v Speaker 3>going to have big moment two NFL games on Netflix,

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<v Speaker 3>but they're kind of just still really attracted to reaching

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<v Speaker 3>a lot of people at the same time, and sports

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<v Speaker 3>is the scent one of the few opportunities to do that.

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<v Speaker 1>But then at the same.

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<v Speaker 3>Time, you have a lot of new, small and mid

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<v Speaker 3>sized advertisers who coming into market for the first time,

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<v Speaker 3>and they don't care about big events, they don't care

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<v Speaker 3>about sports, they care about revenue for their business. They

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<v Speaker 3>just want to reach that perfect person that's going to

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<v Speaker 3>buy from them. And so both of those trends are

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<v Speaker 3>growing at the same time. And so obviously in this case,

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<v Speaker 3>I'm doaling your candidate to buy SAP software, you know,

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<v Speaker 3>unless you're a CFO of a company, so you know

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<v Speaker 3>they're definitely going for that, like, let me reach as

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<v Speaker 3>many people as I can. I think that's actually going

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<v Speaker 3>to decline over time because the ability to target the

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<v Speaker 3>right consumer is just getting better and better.

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<v Speaker 2>On streaming TV, well, why waste your dollars, right, I mean,

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<v Speaker 2>if it's so expensive to get that kind of that

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<v Speaker 2>ticket on Monday Sunday night football, Then why not go

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<v Speaker 2>to other places? Why not go to Instagram for example,

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<v Speaker 2>if you're trying to be more targeted in terms of

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<v Speaker 2>where you're getting your viewers.

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<v Speaker 3>Yeah, I mean that that's part of this, Like the

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<v Speaker 3>bifurcation is that these large advertisers that are led by

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<v Speaker 3>cmos that I think are just used to that form

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<v Speaker 3>of buying media. But go to the average e commerce site.

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<v Speaker 3>You know, Maltain works with one Wheel, we work with

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<v Speaker 3>hex Slad. They would never play sads like that. Their

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<v Speaker 3>goal is to find that consumer is going to buy

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<v Speaker 3>literally that week, and to reach them and put their

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<v Speaker 3>product in from the first time. And they're comparing streaming

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<v Speaker 3>TV to Instagram and the way you're saying, whereas in

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<v Speaker 3>this case, you know, SAP, Yeah, clearly was not.

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<v Speaker 1>So it's just.

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<v Speaker 3>Younger digital buyers versus more traditional media buyers just kind

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<v Speaker 3>of attack the opportunity different ways.

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<v Speaker 4>Yeah, Mark, I mean, it's very easily break upable into

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<v Speaker 4>the different demographics. So it's TikTok for you know, up

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<v Speaker 4>to a certain age. Then it's maybe Instagram, then Facebook,

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<v Speaker 4>and then you know the very oldest among us perhaps

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<v Speaker 4>the actual newspapers and TV stations.

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<v Speaker 1>Yeah.

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<v Speaker 3>The one thing to keep in mind is more people

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<v Speaker 3>watch TV a day than what then use social media.

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<v Speaker 3>So about three point five billion people worldwide use social

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<v Speaker 3>media daily for an hour, and five point five billion

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<v Speaker 3>people a day watch TV and they.

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<v Speaker 1>Do it for three hours.

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<v Speaker 3>So, you know, feels like Instagram, Like social media is

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<v Speaker 3>the new medium, but it's a small ad that you

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<v Speaker 3>can swipe by really easily versus an ad on a

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<v Speaker 3>you know, so on a six point five inch phone

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<v Speaker 3>screen versus sixty five inches on your wall, and more

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<v Speaker 3>people watching it and doing it for longer. So TV

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<v Speaker 3>is not only starting holding its own, it's it's making

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<v Speaker 3>a comeback in terms of providing both the reach, the

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<v Speaker 3>targeting and the big screen with thirty seconds a time

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<v Speaker 3>to get your message across. As an advertiser, that's really appealing.

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<v Speaker 3>It's very very appealing for advertisers to get that.

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<v Speaker 4>Are the middleman still as important as they were? Or

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<v Speaker 4>is there the potential now for advertisers to go directly

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<v Speaker 4>to the broadcast outlets?

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<v Speaker 1>Yeah?

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<v Speaker 3>So I mean that's literally what man does. We provide

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<v Speaker 3>a self service solution, mainly gear to small mid sized businesses,

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<v Speaker 3>but we increase they have larger brands using our platform,

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<v Speaker 3>and so I wouldn't say the middleman is gone, because

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<v Speaker 3>when you're spending big budgets, you want a lot of

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<v Speaker 3>strategy around it. And that's what all the holding you know,

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<v Speaker 3>advertising holding companies do what the group them who you

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<v Speaker 3>mentioned earlier, you know what they provide. But increasingly, I

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<v Speaker 3>would say a majority of the newer advertisers coming in

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<v Speaker 3>this market do it themselves that they're coming in and

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<v Speaker 3>they're like, I'm used to doing this on Instagram, I'm

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<v Speaker 3>used to doing this with Google, and I'm now going

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<v Speaker 3>to be used to doing it on streaming TV. So

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<v Speaker 3>you so again, the customers are kind of changing. At

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<v Speaker 3>the same time, the industry is just.

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<v Speaker 4>Really briefly, mark any stadium is going to be renamed

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<v Speaker 4>next year, Shanelli heard you yesterday talking about.

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<v Speaker 2>And Nissan Stadium sound stadium.

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<v Speaker 3>Yeah.

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<v Speaker 4>Who would be able to buy something like that or

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<v Speaker 4>who would be in the you know the top names.

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<v Speaker 3>Well, I don't have a name off the top of

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<v Speaker 3>my head, but I know a few years ago it's

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<v Speaker 3>all about crypto, you know, naming stadiums about crypto.

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<v Speaker 1>I don't think we're going to see that trend. So

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<v Speaker 1>there is a new name. It's probably gonna be a

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<v Speaker 1>little more traditional, all.

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<v Speaker 4>Right, Mark, thank you so much. That is Mark Douglas,

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<v Speaker 4>founder and CEO of Mountain, looking forward to speaking to

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<v Speaker 4>you again in twenty twenty five.