Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: We're going to switch gears now. We're going to talk
Speaker 2: about a topic that has been really impacting a very
Speaker 2: specific part of the market. We're going to talk about
Speaker 2: how streaming has been disrupting traditional business models in linear television,
Speaker 2: and we're going to look here at those advertising spending trends,
Speaker 2: because of course it's impacting how big tech companies approach
Speaker 2: the space as well. Data that emerged justice month from
Speaker 2: Group M shows that the ad industry is estimated to
Speaker 2: have pulled in a trillion dollars in annual revenue for
Speaker 2: the first time, and tech companies are getting a huge
Speaker 2: chunk of it. We're going to bring in Mark Douglas,
Speaker 2: founder and CEO of Mountain, a tech company that specializes
Speaker 2: in TV advertising software. Mark, I think about a lot
Speaker 2: of the discussions we've had with you all year, ones
Speaker 2: that have really surrounded political ad spending, Ones that have
Speaker 2: kind of talked here about the dominance of Amazon and
Speaker 2: Netflix getting into different types of streaming, different types of
Speaker 2: viewing that have helped them capture a little bit more
Speaker 2: of that ad spend. When you think forward to next year,
Speaker 2: what's going to be the new story here. What is
Speaker 2: going to be the latest that we see in terms
Speaker 2: of what seems like a parabolic move in this industry.
Speaker 3: Yeah, well, I think the big thing is that all
Speaker 3: of the major streaming networks are streaming first. Now that
Speaker 3: you could see that, Like in meetings I have with
Speaker 3: a lot of networks during the year, they went from
Speaker 3: what do they do about their linear business to their
Speaker 3: just entirely focused on streaming consider linear legacy business. And
Speaker 3: I think all of them see and why I say, well,
Speaker 3: I mean Disney obviously, Netflix, others see it as a
Speaker 3: real big growth opportunity for the first time and long
Speaker 3: time for the industry. Because this industry has been so
Speaker 3: dependent on a small number of very large advertisments, and
Speaker 3: now that customer base is broadening very.
Speaker 4: Rapidly, what will be the next catalyst for advertising? Obviously
Speaker 4: the election was huge one, but we need to know.
Speaker 3: Well, I think ESPN really going all in on streaming
Speaker 3: that's happening in twenty twenty five.
Speaker 1: I think that's a big deal.
Speaker 3: Sports, any sports content tend to do really well. You
Speaker 3: see Netflix bringing WWE to Netflix, I think it's going
Speaker 3: to be a great moment. And that's only like a
Speaker 3: less than two weeks away, So you're just going to
Speaker 3: see a lot more sports content. I think Disney and
Speaker 3: others are really stepping up in terms that are going
Speaker 3: to step up in terms of the amount of content.
Speaker 3: But it ultimately is all about sports right now.
Speaker 1: Just people. The advertisers just love sports content.
Speaker 2: Okay, there's a specific ad I watched last night. I
Speaker 2: kind of lost my mind a little bit because I
Speaker 2: was like, Wow, wouldn't have thought that this was the
Speaker 2: audience for that market Monday night football. Okay, I'm watching
Speaker 2: it last night, Mark, and all of a sudden, did
Speaker 2: you see this advertisement? The SAP ad about technology, data centers,
Speaker 2: nuclear power and the CHROs and needing to be in
Speaker 2: the conversation? Yeah, you see that a professional audience is
Speaker 2: being targeted through sports. Sports is kind of the vehicle
Speaker 2: for everything. It feels like when you look at some
Speaker 2: of these ads that are being brought to the platforms,
Speaker 2: what does that mean in terms of different companies trying
Speaker 2: to target different audiences. Do you think that that you'll
Speaker 2: see different types of ads going on to these major
Speaker 2: sporting events because they're becoming ever more important to reach people.
Speaker 3: Yeah, So there's two things happening at the same time.
Speaker 3: One is you have some advertisers who are kind of
Speaker 3: still hooked on that big moment. You know, tomorrow you're
Speaker 3: going to have big moment two NFL games on Netflix,
Speaker 3: but they're kind of just still really attracted to reaching
Speaker 3: a lot of people at the same time, and sports
Speaker 3: is the scent one of the few opportunities to do that.
Speaker 1: But then at the same.
Speaker 3: Time, you have a lot of new, small and mid
Speaker 3: sized advertisers who coming into market for the first time,
Speaker 3: and they don't care about big events, they don't care
Speaker 3: about sports, they care about revenue for their business. They
Speaker 3: just want to reach that perfect person that's going to
Speaker 3: buy from them. And so both of those trends are
Speaker 3: growing at the same time. And so obviously in this case,
Speaker 3: I'm doaling your candidate to buy SAP software, you know,
Speaker 3: unless you're a CFO of a company, so you know
Speaker 3: they're definitely going for that, like, let me reach as
Speaker 3: many people as I can. I think that's actually going
Speaker 3: to decline over time because the ability to target the
Speaker 3: right consumer is just getting better and better.
Speaker 2: On streaming TV, well, why waste your dollars, right, I mean,
Speaker 2: if it's so expensive to get that kind of that
Speaker 2: ticket on Monday Sunday night football, Then why not go
Speaker 2: to other places? Why not go to Instagram for example,
Speaker 2: if you're trying to be more targeted in terms of
Speaker 2: where you're getting your viewers.
Speaker 3: Yeah, I mean that that's part of this, Like the
Speaker 3: bifurcation is that these large advertisers that are led by
Speaker 3: cmos that I think are just used to that form
Speaker 3: of buying media. But go to the average e commerce site.
Speaker 3: You know, Maltain works with one Wheel, we work with
Speaker 3: hex Slad. They would never play sads like that. Their
Speaker 3: goal is to find that consumer is going to buy
Speaker 3: literally that week, and to reach them and put their
Speaker 3: product in from the first time. And they're comparing streaming
Speaker 3: TV to Instagram and the way you're saying, whereas in
Speaker 3: this case, you know, SAP, Yeah, clearly was not.
Speaker 1: So it's just.
Speaker 3: Younger digital buyers versus more traditional media buyers just kind
Speaker 3: of attack the opportunity different ways.
Speaker 4: Yeah, Mark, I mean, it's very easily break upable into
Speaker 4: the different demographics. So it's TikTok for you know, up
Speaker 4: to a certain age. Then it's maybe Instagram, then Facebook,
Speaker 4: and then you know the very oldest among us perhaps
Speaker 4: the actual newspapers and TV stations.
Speaker 1: Yeah.
Speaker 3: The one thing to keep in mind is more people
Speaker 3: watch TV a day than what then use social media.
Speaker 3: So about three point five billion people worldwide use social
Speaker 3: media daily for an hour, and five point five billion
Speaker 3: people a day watch TV and they.
Speaker 1: Do it for three hours.
Speaker 3: So, you know, feels like Instagram, Like social media is
Speaker 3: the new medium, but it's a small ad that you
Speaker 3: can swipe by really easily versus an ad on a
Speaker 3: you know, so on a six point five inch phone
Speaker 3: screen versus sixty five inches on your wall, and more
Speaker 3: people watching it and doing it for longer. So TV
Speaker 3: is not only starting holding its own, it's it's making
Speaker 3: a comeback in terms of providing both the reach, the
Speaker 3: targeting and the big screen with thirty seconds a time
Speaker 3: to get your message across. As an advertiser, that's really appealing.
Speaker 3: It's very very appealing for advertisers to get that.
Speaker 4: Are the middleman still as important as they were? Or
Speaker 4: is there the potential now for advertisers to go directly
Speaker 4: to the broadcast outlets?
Speaker 1: Yeah?
Speaker 3: So I mean that's literally what man does. We provide
Speaker 3: a self service solution, mainly gear to small mid sized businesses,
Speaker 3: but we increase they have larger brands using our platform,
Speaker 3: and so I wouldn't say the middleman is gone, because
Speaker 3: when you're spending big budgets, you want a lot of
Speaker 3: strategy around it. And that's what all the holding you know,
Speaker 3: advertising holding companies do what the group them who you
Speaker 3: mentioned earlier, you know what they provide. But increasingly, I
Speaker 3: would say a majority of the newer advertisers coming in
Speaker 3: this market do it themselves that they're coming in and
Speaker 3: they're like, I'm used to doing this on Instagram, I'm
Speaker 3: used to doing this with Google, and I'm now going
Speaker 3: to be used to doing it on streaming TV. So
Speaker 3: you so again, the customers are kind of changing. At
Speaker 3: the same time, the industry is just.
Speaker 4: Really briefly, mark any stadium is going to be renamed
Speaker 4: next year, Shanelli heard you yesterday talking about.
Speaker 2: And Nissan Stadium sound stadium.
Speaker 3: Yeah.
Speaker 4: Who would be able to buy something like that or
Speaker 4: who would be in the you know the top names.
Speaker 3: Well, I don't have a name off the top of
Speaker 3: my head, but I know a few years ago it's
Speaker 3: all about crypto, you know, naming stadiums about crypto.
Speaker 1: I don't think we're going to see that trend. So
Speaker 1: there is a new name. It's probably gonna be a
Speaker 1: little more traditional, all.
Speaker 4: Right, Mark, thank you so much. That is Mark Douglas,
Speaker 4: founder and CEO of Mountain, looking forward to speaking to
Speaker 4: you again in twenty twenty five.