Magnite, Inc. Common Stock Citi Global TMT Conference

Great to be here. I would say programmatic is just up and to the right in terms of becoming the default mechanism for transactions in CTV. With that being said, I think there are some pockets where the market has leaned on more of the traditional direct sold model. For example, historically speaking, business tied to the upfronts with the largest players would fall into that bucket. Increasingly, though, the negotiations between the big buyers and the big media owners through the upfronts are moving money toward programmatic transactions as well, and that's a relatively new trend. That's a historically untapped pocket that's moving toward programmatic, and then live events would be another example that's probably even earlier on.

But historically speaking, either linear passthrough, as in the same ad experience you'd get if you were watching on linear, even though you're watching via streaming, or traditional IO-based transactions dominated that space. Now you're seeing more and more business there move toward programmatic as well. So we have some of these untapped pockets that are moving toward programmatic, in addition to the historical video-on-demand space.

Yeah. Just start on the buy side, for sure, the national television business was dominated by a relatively small number of large advertisers. We are now seeing more of these small businesses looking for niche audiences, direct-to-consumer businesses opening up the funnel and moving into streaming television. The addressability and targetability, and also the measurability provides that in terms of what those advertisers are looking for. We have seen a bunch of dedicated companies pop up on the buy side, and some of which you are probably familiar with, so the likes of an MNTN or a Tatari or a tvScientific, and we have worked very closely with all those companies, and I would say we are one of, if not the largest, supply sources for those businesses. And they have worked hard to help onboard those small and mid-size businesses, which is a very broad category into the space.

I would say a more recent development that we find very interesting is some of the M&A that has happened there. So Walmart with Vibe.co, Pinterest with tvScientific. I think one of the big challenges has been how do you go out and attract that mid and long-tail advertiser at scale and also retain those advertisers? And doing that as a startup sustainably over the long term, I think we have had some questions about. But certainly you see Walmart getting involved, Pinterest getting involved. They have those connection points with those types of advertisers, and we think that can really turbocharge the broadening on the buy side of advertisers in the streaming space.

Yeah. You bring up an interesting point. So we acquired a company called streamr.ai, and the core business model there was bringing down the creative barrier. So how do we help small and mid-size businesses get through that process, which was historically a big blocker? The time and the cost around building a TV creative was an issue. Now, using AI, we have tools that bring down the time and cost dramatically. We made the strategic decision not to go directly to those small and mid-size businesses, but to license that technology to companies who in turn do. And so it is a little bit of a different approach from our side, but that technology has been hugely popular as part of our portfolio, and we are working with tons of companies out there to help do that.

In addition, I think at the end of the day, all of those advertisers need to purchase supply through a scaled and effective player, and I think we are very well-suited to be that home, regardless of the type of advertiser.

I certainly think it was, but I think the capabilities are coming along very well there, and I think that is starting to become more appreciated by the market. Also, those advertisers are often coming at it with a little bit of a different angle than a big television advertiser, and so they have more of a performance focus. So making the process of buying streaming look more like what they are accustomed to in other channels like social is also a big part of it.

Yeah. Great question. Yes, we have all been waiting, Wall Street ourselves, very impatiently for a long period of time for this to come through. Now, what we do have at the moment is a 1.5-page order, which is, again, still cryptic and still not the full set of behavioral remedies that has been shared with both parties. So what has been shared with both parties is sealed. It is sealed for 14 days. At that point, what we know is Google and the DOJ will have a chance to redact anything that they would not like seen. The judge will rule on that, and sometime between day 14 and 30, we will get a full viewing of what the remedies are, and what the behavioral remedies will be. So I think at the moment, we know no structural, as you pointed out.

We know there are behavioral remedies, and everybody is overanalyzing, and rightfully so, overanalyzing that most of the behavioral remedies proposed by the parties will be ordered. We are guessing at what that might mean. The Street is trying to guess at what that might mean. The industry is guessing what that might mean. So today, we know nothing more than that, but it is encouraging, right? To hear most, right, is an encouraging word. What we also know is some of the remedies proposed by parties are in conflict with one another, and I will not go through those, but we do not know how those tiebreakers work as well. But the word most gives us encouragement that, is it just the ad server that will be changed in how it works with the exchange? Is it something on the demand side that will be changed?