Integral Ad Science Holding Corp. (NASDAQ:IAS) Q2 2023 Earnings Call Transcript

Operator: And one moment for our next question. Our next question comes from Jason Kreyer with Craig-Hallum Capital Group.

Cal Bartyzal: Hey, this is Cal Bartyzal on here for Jason. So first question I just wanted to kind of circle back to this mid-market initiative you guys have and just see kind of what progress you’ve seen in trying to penetrate into the mid-market?

Lisa Utzschneider: Sure, Cal. I’m happy to speak to mid-market. So, we are seeing a nice uptick with mid-market penetration. We define mid-market as north of the top 100 accounts. One area in particular is Context Control where when you take a look at the Q2 revenue of Context Control from mid-market clients, it’s growing faster than overall growth of mid-market. But the other thing I’ll say about mid-market is, we’re seeing nice adoption not just in the U.S., but internationally. And when you take a look at some of the data both in EMEA and APAC, we’re seeing that the bets we’re placing in emerging markets so emerging markets like South Korea, Thailand investments both in the independent agencies investment in putting boots on the ground in the markets that’s lighting up our mid-market activation and revenue.

So we’ll continue to invest in the mid-market channel, but also continue to invest in emerging markets as they bring on more and more of the local brands in the local markets to beef up our mid-market category.

Cal Bartyzal: Perfect. And then last one for me. We’ve seen numerous headlines lately around things like made-for-advertising sites. So just wondering if maybe you saw any potential impact on furthering the desire for IAS solutions with those headlines kind of permeating across the industry?

Lisa Utzschneider : Yes, sure. So great question. So, we are definitely developing our MFA solutions to help detect MFA sites, and we will look forward to share an update on our progress in that area in our next earnings call.

Cal Bartyzal: Perfect. Thank you guys so much.

Lisa Utzschneider : Thank you.

Operator: One moment for our next question. Our next question comes from Robert Zeller with Truist Securities.

Robert Zeller : Hi. This is Robert on for Youssef Squali. Thanks for taking the questions. I’m just curious on short form video. How much are Reels and Shorts opening up their inventory versus TikTok? And are you able to give us an idea of how much available TikTok — how much available inventory there is on TikTok, how much they are opening their platform to be measured? And then just one bigger picture question. Over the next few years, I’m curious, if you see increased spend from large advertisers or new spend from new customers like mid-market being a bigger driver of growth? Thanks.

Lisa Utzschneider: Yes, sure. Happy to take the first question. So when you look at these large platforms, again, it’s early days with Meta Reels and YouTube Shorts. We just rolled out our viewability and invalid traffic with Meta Reels. But the one data point that I will share that Meta talked about in their earnings call last week is more than three quarters of Meta’s advertisers are running ads on Reels. So when you think about that sizable ad inventory, and again, it’s early days, but also as I mentioned before just the overall adoption of Reels, we are really excited to be partnered with Meta on Meta Reels and that we rolled out our offering. Same thing with YouTube Shorts, some of the stats they were stating in their earnings call last week, I believe it was 2 billion users using YouTube Shorts just incredible scale.