Subscribe to AdExchanger Talks on iTunes, Google Play, Spotify, Stitcher, SoundCloud or wherever you listen to podcasts.
Mediaocean CEO Bill Wise has strong words for The Trade Desk.
This week on AdExchanger Talks, Wise sits for a joint interview alongside Lance Neuhauser, CEO of 4C, which Mediaocean has agreed to acquire for approximately $200 million. The deal gives Mediaocean more inroads into digital and advanced TV advertising, and it puts it in a new competitive set that includes demand-side platforms such as The Trade Desk.
Wise notes that The Trade Desk has managed to sustain a 20% margin from billings, but he says those mostly digital margins won’t port easily to television – where The Trade Desk has set its sights.
“When you’re dealing with long tail, open web, mobile, [10% to 20% margins are] generally OK because it’s not a huge portion of a publisher’s yield curve,” he says. However, those supply chain economics can’t be ported to the TV ecosystem, where supply chain margins are sub-3%.
“They’re going to run into a wall, and that wall is Mediaocean.”
Also in this episode: getting an acquisition done during the pandemic.
