On Tuesday, Magnite announced it had acquired Streamr.ai, which specializes in developing AI-generated assets for small businesses to use in their CTV campaigns.
The SSP is betting on the DOJ’s antitrust remedies, plus closer relationships with agencies, DSPs and mid-sized advertisers, to help it eat some of Google’s lunch.
When it comes to third-party cookies on Chrome, Google’s plan to reverse course is neither here nor there, says Magnite CEO Michael Barrett. “Forget Privacy Sandbox,” Barrett said. “That thing was dead upon arrival.”
Although the full revenue impact of Magnite’s exclusive SSP partnership with Netflix hasn’t hit yet, simply announcing the deal “created significant momentum for our business,” Magnite President and CEO Michael Barrett told investors.
For Magnite, the biggest growth opportunity lies in supply-path optimization. The trade-off is the pressure to differentiate itself from other supply-side platforms competing for agency deals.
Total ad spend from deals transacted through Magnite’s platform topped $5 billion for the full year, representing nearly 20% YOY growth, while full-year CTV ad spend was also up 20%.
CTV contributed $52.5 million to Magnite’s Q3 earnings, actually declining 6% from $56 million at the same time last year. CTV comprised 39% of overall revenue this quarter, compared to 41% for mobile ads and 20% for desktop ads.
Magnite’s still enamored of CTV. CTV’s contribution to Magnite’s revenue was up 8% YOY, from $52 million to $56 million.
Supply-side platforms are under intense pressure to prove unique value or hit the chopping block. And Magnite is using connected TV as its competitive edge.
Magnite’s quarterly revenue was up 11% year-over-year in Q3, with a large chunk of its growth coming from streaming. Growth guidance is conservative for next quarter, but Magnite expects AVOD inventory and retail media to become bigger growth drivers for its bottom line.
