Ad measurement companies are withstanding the macroeconomic headwinds.
Slowing ad spend is causing ad tech companies and publishers to tighten their belts, but Integral Ad Science (IAS) exceeded investor expectations by finishing Q4 with $117.4 million in revenue, up 15% YOY.
IAS isn’t immune to ad spend volatility (the company still laid off 120 employees in December), but the “essential nature” of measurement services provides some insulation, said CEO Lisa Utzschneider during the company’s earnings call on Thursday.
Revenue from the supply side alone also exceeded expectations, accounting for 15% of total Q4 revenue, which was driven by publisher demand for Publica, the ad server IAS acquired in 2021.
Programmatic revenue was up 30% YOY, half of which came from its AI-based contextual analysis tool, Context Control.
As seen on CTV
Connected TV and social video are the two “core priorities” for IAS this year, Utzschneider told investors, including continuing investments in contextual targeting.
Video is now outpacing display in terms of the company’s growth, and the CTV space is in desperate need of programmatic ad verification.
IAS recently scored a deal with Netflix to be one of the streamer’s ad verification and measurement partners. IAS also inked a handful of client partnerships with large international brands last year, including Hershey, which chose IAS for its “differentiated CTV technology,” Utzschneider said.
Social pressure
But social video is swooping in for some of CTV’s market share – and TikTok is at the top of the list for many brands.
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IAS partnered with TikTok in 2021 to verify pre-bid ad placements and added post-bid ad measurement last year. Both sets of reporting align with brand safety risk levels established by the Global Alliance for Responsible Media (GARM).
And marketers are buying in. The number of post-bid campaigns IAS measured on TikTok during Q4 grew 54% quarter over quarter.
This year, IAS plans to expand its TikTok offering into 20 more international markets to keep scaling demand, Utzschneider said. Currently, the offering is available in just a handful of markets, including the US and France.
TikTok may be the sexiest social media app on the block right now, but other platforms still need love (and ad verification), too.
In January, IAS rolled out “tweet-level” analysis to help marketers on Twitter advertise only against content they consider suitable for their brands, also based on GARM standards.
IAS also has a longstanding brand safety-based relationship with Meta.
All things considered, IAS ended the year in a “strengthened financial position,” said Tania Secor, who joined IAS as CFO in November.
And shareholders seem at least semisatisfied; IAS shares ticked up 2% during after-hours trading on Thursday.
