The recent quarterly earnings calls from the few remaining independent ad tech companies show the winds of change in digital media.
LiveRamp today expressed its efforts to help the media transition to the decline in third-party cookies, while Magnite boasted of related television profits. The two companies simultaneously reported their sales for the quarter ended September 30, both up from 12 months earlier:
- LiveRamp revenue: $ 105 million, up 16% year over year.
- Magnite Sales: $ 61 million, up 62% from last year.
Scott Howe, CEO of LiveRamp, told financial analysts that his company expects to be profitable for the next year. He expects subscription products to generate 82% of total revenue (approximately $ 86 million), up 19% year over year.
LiveRamp's data market offering appeared to rebound 27% over the period. It did so when advertisers eased access to wallets as global lockdown restrictions eased.
In addition, LiveRamp works with its Authenticated Traffic Solution (ATS) with more than 25 supply-side platforms (SSP) and 45 demand-side platforms (DSP). 215 worldwide publishers, including 60% of the US comscore top 50, representing more than 14,000 different web properties, have made a name for themselves.
Howe also said LiveRamp continues to look for potential acquisitions. Executives forecast revenue of $ 113 million for the next quarter, a potential 11% increase.
He also told investors that the company's Safe Haven offering has resonated with brands like CPGs and retailers. These brands – along with publishers – are preparing for the decline in third-party cookies as the standard means of targeting online ads and measuring effectiveness.
Citing a recent experiment with a DSP, Howe said media buyers using LiveRamp's ATS offering significantly improved the cost per page view for advertisers and the average order value of audiences converted compared to cookies.
"We recently completed another case study with a major technology company that will be released shortly and got very similar results with up to a 190% improvement in ROI," he added.
Meanwhile, Magnite announced in its earnings call that its third quarter CTV revenue was $ 11.1 million, a pro forma increase of 51% year over year. This is only the company's second quarter of trading following the merger of advertiser Rubicon Project and video management platform Telaria.
"We believe that a significant portion of our growth has come from broad market share gains," said Michael Barrett, CEO of Magnite, in a statement.
"With programmatic, ad-supported CTV, we continue to benefit from the acceleration of cable cutting, programmatic spending on direct sales, inventory growth and overall consumer adoption," he continued.
Speaking to financial analysts, Magnite executives further reiterated how the disruptive effects of Covid-19 on both viewing habits and the upcoming traditional upfront season this year fueled the previously projected surge in CTV revenue.
Barrett explained how his company's growth in CTV sales has lagged behind that of its buy-side competitors in the industry – particularly The Trade Desk – as spending is more fragmented on the sales side.
"We believe that over time (the sell side of the market) will act like the buy side and there will be oversized winners … and that Magnite will be there," he added on the call for earnings. "I think we are outperforming the industry."