Laura Martin: Hi, guys. I’ll ask two. The first one, I’m very curious that your third leg was the $60 billion moving from linear TV to connected television and I think it’s great you guys are doing the direct access. My question to you is, have you really gotten any inclination that advertisers on linear are willing to substitute content-based buying and targeting with audience-based buying and targeting, which is required if they’re really going to move money into the open Internet.
Tim Vanderhook: I would say my answer is yes. I think if that answer was no, digital would have never grown in the first place and all we’ve seen is that digital eats analog technologies over time, because they’re more sophisticated and produce better returns for the publishers and better results for the advertisers. So, there is no doubt in my mind that addressable advertising crushes traditional broadcast advertising, and in no way, shape or form is competitive. So digital will far outcompete linear. That was part of my addressed remarks. I think the big challenge is that, linear is measured from a Nielsen panel that gets gross rating points. Digital is measured in actuals, which are real impressions delivered, verified.
And there’s just a difference there in the way that they’re measured and marketers are trying to resolve those two. But it is certainly — I wouldn’t characterize any one that I’ve spoken to is not willing to spend in streaming or addressable CTV. It’s just that they’re waiting for consumers to fully adopt that channel.
Laura Martin: Okay. Super cool. And then the second thing I was really interested in is the 35% number. So you implemented AI and now you’re getting your customers to you’re a buy-side platform, 35% lower prices for the same content, I’d…
Tim Vanderhook: Unreal. Unreal results.
Laura Martin: It sort of gives — I mean, unfortunately, I take the negative side of this, like what the hell are you guys doing before overcharging your clients 35%. I mean that’s sort of the way, why is it you’re able to get such great improvement by now using AI, because AI machine learning has been out there for like five years and what’s new is generative AI, are you using generative AI? Is that why these improvements are so radical?
Tim Vanderhook: I wouldn’t classify it as generative AI. I would classify it as deep learning versus machine learning. That’s really the difference of the two that were applied. And you’re right, 35% is an enormous number and one that we’re really proud of. And I think the one thing that is important is, we achieved 35% savings on what we believe is already the lowest CPMs getting cleared through all competitive DSPs. So we do believe we had the lowest CPMs and we just raised the bar again. And that is our goal. If you watch any of the discussions that I have in the industry, we go to war with the sell-side to drive pricing down and we unleash technologies, data, algorithms, everything we can to work on behalf of that advertiser and this is just another breakthrough innovation that’s changed the game for the buy-side and one that’s going to reap huge benefits for us as we continue to compete in the market.
Chris Vanderhook: And I think one thing to point out, nearly all of our customers are all self-service at this point and so they themselves control bid pricing. So that’s one piece. Our platform always has worked well to achieve the lowest price when they are bidding. But in the end, the customer has a control. And I think with our new AI-powered Bid Optimizer here, we’re not only — we’re doing it behind the scenes when they opt into it, but it’s still giving them the insights that not only number one, they still remain in control of the bid price, but it’s working hard on their behalf. And I would say that the CPM savings is massive and this is great and the clients love it. What it also does, it’s a multi-KPI-based optimization. So we — clients find that even with this, their pacing and their ad performance is more streamlined, more even as well and so there’s other benefits here. We’ve gotten great response from our customers out of it.
Tim Vanderhook: It’s part of the reason in the prepared remarks, we feel the AI opportunity is more important than the invention of the real-time bidding protocol itself, because of the numbers that we’re seeing internally when it’s applied and trained properly and given the chance to go, it really is a transformative technology for ad tech, in general, and I think, for many other industries as well.
Laura Martin: Great. Thank you very much. Great numbers.
Tim Vanderhook: Thank you.
Chris Vanderhook: Thanks, Laura.
Larry Madden: Thanks.
Operator: Thank you. Our next question will be from Andrew Boone from JMP.
