Share Gains in Streaming Support Long Term, but Supply Chain Disintermediation Is Still Possible
Magnite is the largest independent supply-side platform, or SSP, monetizing digital advertising inventory for publishers and earning a take rate on all ads sold. Over the past decade, header bidding technologies have commodified many SSP services. In the next decade, artificial intelligence overviews are set to fundamentally change how users consume information, most likely reducing the value of ad inventory on many websites. As such, a challenging environment is becoming even tougher for SSPs. If there is a glimmer of hope for Magnite, it lies in the potential to monetize a surge of connected television, or CTV, streaming inventory, which is growing as publishers seek a return on their content spending beyond subscription revenues. Still, we see independent ad tech players as structurally disadvantaged relative to the largest closed ecosystems with data advantages.
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