AdTheorent Holding Company, Inc. (NASDAQ:ADTH) Q4 2022 Earnings Call Transcript

Andrew Boone: Hi, guys. Thanks very much for taking my question. I want to talk about go-to-market. You guys have launched a number of products and understood it was a great answer earlier in terms about how you guys are thinking about just focus there. But can you talk about how you’re educating your client base to make sure that they’re aware of everything? And where does kind of your sales force fit today within kind of a broad product strategy? Thanks so much.

James Lawson: Thank you, Andrew. That’s a great question. We have — we’re fortunate to have a really, really strong, solid, long tenured sales team. Even though we’re a smaller work, we have — we have some of the best in the industry working here at AdTheorent. And they’re doing a great job telling our story, to customers. And when we get out and we talk about the reasons why we should win the price transparency, for example, that we offer and direct access, the incredible amount of optimizers that we provide to make campaigns perform better without users having to do anything. The third-party integrations that we have, which optimize performance. There’s just so many things that we need to educate the market on because we’re trying to go from the status quo, which is an ID-based status quo to a more nuanced non-ID independent version of programmatic advertising.

So, our sales team has a more challenging job because when you’re responding to an opportunity, sometimes you get – and frankly, John, this is one of the reasons why we rolled out the audience builder. Because in the beginning of adherent business, our thesis was you don’t need to think about audiences at all. Because at the end of the day, machine learning can optimize a campaign based on KPI activity. So if you’re selling shampoo, then you can serve ads and you can learn from which impressions are leading to shampoo purchases. And therefore, you don’t need the front end kind of thinking around, well, who’s my audience? And we learned that advertisers have spent a lot of money understanding who their audiences are. And they do want to ensure that when they have a campaign that they’re serving ads to people in their audiences.

So, one of the things that we said was, you don’t want to disagree with your client. You’re not going to go to market and say, your approach is wrong. So what we did is you build something better. So, in addition to the KPI specific ML scoring that we have been talking about for the last 11 years. Now we have these audience quality algorithms which sit on top of that, which essentially are an alternative in a more modern version of an audience. And that is an example of how we’re trying to go to market and our sales team is doing an incredible job educating customers about this new thing that they might not even know exists. And I wish we had $100 million we could spend on marketing because I think we have a really incredible story to tell.

But we take advantage of the opportunities that we have. I think smart people in the industry, a lot of the awards that we have won have been a recognition, frankly, of what we’re doing that’s quite different. But our sales team is strong. We have low turnover. We have more fully ramped sales people on the team than we did this time last year. We think the results are going to be there. We continue to break new accounts. Our focus is also on bigger, more strategic, more top-down engagements. And that’s an area of focus for us, and we think it’s going to pay off. And we’re also making new friends. We’re making new friends in high places. We’re making strategic channel engagement. And we think that that’s going to help us as well. We’re graduating from a small company to try to become a very, very big company, and that’s part of that journey.