The Billboard Insider Podcast
00:16:51 · Dave Westburg, Jonathan Gudai
[00:16:51] S0: Yes. [00:16:51] S1: And then the and then the second part of it is, well, how do I do it? Mhmm. Right? Like, if it still takes weeks to plan and buy, then these digital buyers who are used to minutes or days are just not gonna do it. Right? Mhmm. And so that's where we come into play where we built our demand side platform where you go online, you build your campaign, literally can do it in minutes Mhmm. Or go to your omnichannel DSP. Go to a mobi. Go to data global. Soon, you'll able go to The Trade Desk because one of the larger ones. [00:17:22] S0: Yes. [00:17:22] S1: And we gotta bring digital home to the the buying community. Mhmm. And I think that's what not just grows it by, you know, from two and a half to five. I think that $10,000,000,000 in The US in the next five years is not outside the realm of feasibility. [00:17:39] S0: Wow. Wow. That's a... Yeah. [00:17:41] S1: Yeah. Yeah. I mean... And it's not unprecedented either, Dave. Like Mhmm. If you look at if you look at how quickly Amazon went from zero to... I think last quarter, they did $4,000,000,000, you know, in in in q two. So let's call them 15,000,000,000. From zero to 15,000,000,000 per year in, like, three or four years. [00:18:02] S0: Wow. [00:18:02] S1: Let's look at connected TV and how the money is flowing out of linear television and into streaming apps, and that is the fastest growing programmatic channel, and that's gonna be upwards of $10,000,000,000 in the next year or two. Look at TikTok. [00:18:16] S0: Wow. Right? Yep. Yep.
00:18:16 · Dave Westburg, Jonathan Gudai
[00:18:16] S0: Wow. Right? Yep. Yep. [00:18:17] S1: It... It's just all all these things are happening, and that's what's amazing. That... That's what the technology can do to dramatically change the way ads are bought and sold. We just have to let it happen. [00:18:29] S0: So Nirvana is a four x greater market. What could interfere with that projection?
00:18:29 · Dave Westburg, Jonathan Gudai
[00:18:29] S0: So Nirvana is a four x greater market. What could interfere with that projection? [00:18:35] S1: So in in many ways, I think that we are masters of our own destiny as an industry. The decisions that we've made over the last few years and the decisions we're gonna make over the next couple of years are gonna determine how fast we grow. Mhmm. And what I mean by that is that it really starts with the supply. You know? They do a billboard. Just billboards in general have been bought a different way Mhmm. For as long as they've been sold. Right? And and it's worked. Right? I mean, there's been solid growth, and there's been more and more, you know, digitization, and and companies are happy. It's only been over the last few years that, you know, the savvy media owners have said, okay. We know we have this this thing that works on on the one side with our direct sales teams and traditional selling, but we need to open it up, and we need to have the... Both of these models coexist. Mhmm. And so, really, it's been over the last year or two that the supply has finally hit a critical mass where there's been enough impressions in the Adomni platform, in Vistar, and other other companies where you can get a big brand excited who's buying digital. Mhmm. And so we need it from an... What can interfere? We need to keep doing that. Like, we've we've made great headway, but there's still lots of independent independent Billboard guys who are still not selling programmatically or haven't chosen the CMS that would make that possible. [00:19:52] S0: Yep.
00:19:52 · Dave Westburg, Jonathan Gudai
[00:19:52] S0: Yep. [00:19:52] S1: And so in order for us to grow our medium four x or two x in the next few years, we need buyers to be able to fulfill their campaign sizes. And whether it's the largest media buyer in in in the world or it's the local guy, it it has to work. Right? You have to be able to to get these ads on the screens and have someone say, wow. That actually... Like, I tried it. Mhmm. And I spent all my budget, and it worked. And so there's there's definitely still work to be done to get the supply side on onboard there. You know, the measurement piece, I'd say, is probably the the biggest and the one that's the most of a moving target. Digital buyers are used to a report that says, you know, I I spent $500 on Facebook. I had this CPM, and I have this many clicks and this many purchases or whatever their conversion metric was. [00:20:37] S0: Yes. [00:20:38] S1: With with us not being a direct response medium, we need to to really solve the perception for the buyers that when you add the... Out of the billboards into your mix, you're gonna see that Facebook click through rate go up. And so if you do, like, an AB test, you'll see that that the b will perform better. [00:20:57] S0: Yes.
00:20:57 · Dave Westburg, Jonathan Gudai
[00:20:57] S0: Yes. [00:20:57] S1: But we also need to let people who are just doing stand alone campaigns who say, okay. I I wanna measure my digital out of home as a stand alone channel, and that's where the mobile devices that travel past the board are are so important for us to be able to continue to understand what they are or where they've been Mhmm. And then build, you know, lift studies that show, you know, if you compare people who are exposed who are not exposed, here's how many more conversion metrics you saw, whatever you're trying to do online or offline sales. Mhmm. And so so we're on our way there, Dave, but it's... It it... It's a concern with Apple with what's about to happen with iOS 14 and then trying to kinda clamp down on some of the the location data access. [00:21:42] S0: And let's talk about that. It looks to me like in iOS 14, they're gonna go to allow you to opt to report your approximate location versus precise location. It also looks like there's going to be a lot more ability to go in and say, No, don't share this information with this app or don't share this with that. What impact are these items going to have on the quality of the location data you're able to get from people moving around with their smartphones? [00:22:12] S1: Yeah. And that's multibillion dollar question. Not even just for us. Mhmm. For the whole ad industry. [00:22:18] S0: Yes. [00:22:18] S1: This has tremendous ripple effects. [00:22:20] S0: Yes.
00:22:20 · Dave Westburg, Jonathan Gudai
[00:22:20] S0: Yes. [00:22:21] S1: The the short answer is we don't know until it comes out. Mhmm. And we start to see how how consumer behaves. Right? Because what what what Apple is doing, which it... So so many people in the ad industry are saying this is this is like a nefarious act. It's not even... It's it's not even, like, great for the consumers. It's just it's just Apple kinda exerting its force [00:22:42] S0: Mhmm. [00:22:42] S1: Is they are forcing you to have to... They will force you to have to opt in to the precise location of your of your of your phone to be to be included for the apps that that require location services. Mhmm. As opposed to what they've done in the past where it's... You have to opt out. [00:23:01] S0: Yes. [00:23:01] S1: And so app... Apple is almost saying, like, we have a problem in this country with people's privacy, and and so we're gonna decide to make it harder for companies to to deliver relevant services or or whatnot. And and and the consumer is gonna be smart enough to decide that they wanna go out of their way to turn it on. Mhmm. And in many ways, it's super messed up, not just from a business perspective, but they are they are they are too... Doing things to the detriment of consumers. And what what we found, and this is the unfortunate part, is that a lot of consumers just go with what's defaulted. [00:23:32] S0: Yes. [00:23:33] S1: You know? [00:23:33] S0: Like, Google [00:23:34] S1: in their settings and and turn things off. [00:23:35] S0: Right. Right.