August 2024 in MarTech and AdTech
Welcome to the August edition of MarTech Insider! Summer might be winding down, but the AdTech and MarTech world shows no signs of slowing. Netflix is teaming up with data giants to level up its ad platform, Reddit is shaking things up with AI-powered creative optimization, and Roku is doubling down on cookieless targeting with Unified ID 2.0. We also dive into Criteo's potential game-changing acquisition of Skai and Warner Bros. Discovery's fresh approach to first-party data. Plus, industry leaders are buzzing about cost optimization, the contracting data supply chain, and new trends in CDP marketing. Stay with us for all the latest insights, expert opinions, and strategies driving the industry forward. Follow Xenoss MarTech Insider to stay ahead of the curve!
Let’s dive in!
Netflix is stepping up its ad game by joining forces with InfoSum , LiveRamp , and Snowflake to boost its advertising platform. By integrating data clean room solutions from Snowflake and InfoSum, Netflix will allow advertisers to share conversion data securely, enhancing measurement capabilities on the platform. These new collaborations aim to provide advertisers with tools for last-touch attribution, audience overlap insights, and post-campaign reach and frequency analysis—all in a privacy-first environment.
Snowflake’s data clean rooms are already up and running for Netflix’s partners, with InfoSum and LiveRamp set to follow soon. This move aligns with Netflix’s broader ambition to expand its advertising operations and build more robust ties with ad tech players. Not just that, Netflix recently wrapped up upfront negotiations, scoring deals with major holding companies and independent agencies that could boost upfront ad sales by at least 150% in 2023. The company has made headway in various sectors, including CPG, Tech & Entertainment, Auto, QSR, and Retail.
Netflix’s advertising arm is growing fast. In Q2 2024, the streaming giant reported 278 million member households and $9.6 billion in revenue, combining subscription fees and ad sales. Since launching its ad business in 2022, Netflix has been on a roll, initially partnering with Microsoft for tech and sales operations before expanding to agreements with major ad-tech firms like Google, Magnite, and The Trade Desk. With its eye on launching an in-house ad server by 2025, Netflix is clearly committed to carving out a significant space in the advertising landscape.
Despite these advancements, some ad buyers are still grumbling about the slow expansion of Netflix’s ad-supported tier, and recent leadership changes, like the departure of Peter Naylor, Netflix’s VP of global ad sales, have stirred the pot. On the bright side, the new partnerships with InfoSum, LiveRamp, and Snowflake should open up fresh opportunities for advertisers looking to engage Netflix’s highly coveted audience in innovative ways.
Netflix has also rolled out extended buying capabilities, enabling marketers to set up private marketplace deals via The Trade Desk, Google’s Display & Video 360, or Xandr. These options, including programmatic guarantees and fraud and viewability verification tools, will be expanded to more markets in the coming months. It’s clear that Netflix is pulling out all the stops to enhance its ad offerings and keep pace with the ever-evolving ad tech world.
Reddit snaps up Memorable AI to beef up its ad game, giving advertisers new AI tools to fine-tune creative assets. This marks Reddit's first acquisition since going public and aligns with its push to woo performance-driven brands, stacking up against giants like Facebook and rising stars like TikTok.
Roku is teaming up with The Trade Desk to integrate its UID2 identity solution, pushing more precise ad targeting across its platform's 83.6M households. With this move, Roku is doubling down on cookieless ad strategies, aiming for seamless activation, better ad performance, and stronger ROI.
Perplexity AI, an AI-powered search app with over 230M queries monthly, plans to launch ads at $50+ CPMs. While some call this premature, the company eyes a CPM model since its AI keeps users inside the app, unlike traditional search. With a $1B valuation, it's a bold step in a still-uncertain game.
AdLib teams up with Jounce Media to block "made-for-advertising" (MFA) sites and boost inventory curation. This move gives midsize buyers free MFA-blocking tools, helping steer ad spend to quality publishers. Jounce's exclusion list, updated daily, ensures cleaner supply and narrows MFA's ad budget share.
Criteo is reportedly in M&A talks with Skai to strengthen retail media focus
Criteo's move to acquire Skai could be the next big step in its transformation journey. For years, Criteo has been trying to break free from its retargeting roots, and picking up Skai would give it the broader capabilities it needs to do just that. Skai's strengths in search and e-commerce would nicely round out Criteo's existing offerings, allowing it to cover everything from retail media and Google search to display and paid social—all tied together with robust user data and attribution.
This isn't just about expanding capabilities; it's about becoming a more essential partner for brands that are serious about performance marketing. Criteo has long been battling the perception of being too narrow in focus, even as it has pushed into retail media. By bringing Skai into the fold, Criteo could offer a more complete package that appeals to brands looking to streamline their advertising efforts across various channels.
Of course, nothing’s set in stone yet, and $500M is a significant investment. But if the deal goes through, Criteo could finally shed its old label and cement its position as a key player in the performance marketing space. It's a bold move, and one that could pay off if all the pieces fall into place.
Warner Bros. Discovery International has rolled out WBD AIM, a first-party data platform that lets advertisers zero in on audience targeting with newfound precision across EMEA, APAC, and LatAm. By tapping into WBD's extensive data touchpoints—from streaming and behavior to intent and purchases—AIM offers actionable audience insights and contextual ad placements that promise to optimize campaigns and boost ROI. Already embraced by brands like 阿迪达斯 and British Airways , AIM pulls data from across WBD’s vast portfolio, including CNN, Max, discovery+, and Eurosport, setting the stage for sharper, more impactful targeting.
In August, AdTech industry leaders were discussing:?
??Criteo's strong financial performance and adaptability to market changes
Vincent Flood , Editor-in-Chief at VideoWeek , initiated the discussion with a chart showing the rise in Criteo's share price from November 2023 to August 2024. Commentators humorously suggested that the chart's growth trend aligns with Google's announcements regarding cookie policies. The discussion also touched on past skepticism about Criteo's potential, particularly in the face of challenges like Intelligent Tracking Prevention (ITP).
??Cost optimization in data infrastructure
In his LinkedIn post, Benjamin Rogojan shared a list of resources, including articles and videos, aimed at helping others learn how to cut data stack costs. The commentators underscored the importance of optimizing data infrastructure for effective cost reduction. They shared experiences of achieving significant savings by adjusting settings and leveraging cost-saving features in data platforms like Snowflake. Additionally, they noted a growing trend of organizations moving away from expensive cloud solutions toward more controlled environments, such as data centers or hybrid models, to manage expenses better. Emphasis was also placed on the importance of storing and processing only essential data to avoid unnecessary costs.
?? The contracting data supply chain
In the Martech community, there was a discussion about the evolving data supply chain and the shifting role of Customer Data Platforms (CDPs) as activation and cloud data platforms expanded their capabilities. Commentators noted that activation platforms were becoming warehouse-native, integrating directly with data storage, while cloud data platforms were adopting CDP-like features, potentially diminishing the need for traditional orchestration layers. Some argued that data clean rooms could replace these layers, though others pointed out their limited use for CRM and retention marketing. The convergence of platform functions raised concerns about the future of CDPs and suggested that major players like Amazon might gain an edge as the supply chain continued to contract. This evolution hinted at a more interconnected landscape, where the distinctions between data platforms were becoming increasingly blurred.
?? Brian Kotlyar ’ stong meme game
We're seeing a new trend among CDP vendors: a growing preference for using lighthearted content and memes to explain and promote their solutions. August was a particularly fruitful and inspiring month for Hightouch to embrace this trend. Brian Kotlyar of Hightouch shared clever visual metaphors explaining the limits of traditional CDPs. All MarTech colleagues in the comments commented on how Hightouch makes things easier to understand.
With the digital ad landscape shifting towards more controlled and efficient data management, publishers are recognizing the significant potential in direct deals—a sentiment echoed in AdMonsters ' July 2024 Publisher Pulse report, where 68% of surveyed publishers identified direct deals as their best opportunity for revenue growth in 2025. As platforms like WBD AIM and strategies discussed in recent MarTech and AdTech conversations continue to evolve, those who can effectively harness their data and streamline operations will lead this revenue-driving trend well into 2024 and beyond.
In August, Xenoss announced the promotion of Ihor Novytskyi to Director of Solution Engineering. Ihor joined Xenoss with considerable industry knowledge and managerial experience from EPAM Systems and Luxoft to lead MarTech/AdTech high-load software development for Xenoss clients.
Maria Novikova ?? ??AWS ReInvent , CRO at Xenoss, will be attending Programmatic IO 2024 in New York on September 24-25, hosted by AdExchanger. She is excited to explore the latest AdTech trends, privacy issues, CTV developments, and retail media topics at this premier conference. Maria is also looking forward to connecting with some of the industry's most influential figures, including representatives from Adform , FreeWheel , StackAdapt , LG Ad Solutions , Magnite , OpenX , Samsung Ads , DoubleVerify , Equativ , and more.
Xenoss will be at Advertising Week New York 2024 from October 7-10. Dmitry Sverdlik, #Xenoss CEO, and Maria Novikova ?? ?? Programmatic I/O New York, Xenoss CRO, are already lining up their schedules to connect on the latest trends and innovations in marketing and advertisingAs a marquee event on the #MarTech and #AdTech calendar, #AdvertisingWeek New York is the place to be for anyone serious about staying ahead in the digital marketing landscape. It's the perfect chance for us to reconnect with familiar faces and make new connections in the industry.
To stay up to date on the upcoming AdTech events, check out our AdTech event calendar.
This wraps up our newsletter. As we gear up for Programmatic I/O, we anticipate a ton of discussions and insights in the September edition. We'll keep you informed every step of the way, so be sure to follow Xenoss MarTech Insider to stay updated.