Viant $DSP CEO Tim Vanderhook - ad tech, fraud, and the first-party data revolution
Feb 11, 2025
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Tim Vanderhook, Co-founder and CEO of Viant Technology, discusses the trillion-dollar advertising market and the underestimated value of linear TV. He dives into the explosive growth of streaming audio and innovative digital ad strategies, particularly in sports. Tim confronts the rising challenge of ad fraud, emphasizing the importance of artificial intelligence and first-party data to combat it. He shares insights on navigating public offerings and the critical role of brand identity, revealing valuable opportunities for targeted advertising in the evolving market.
Tim Vanderhook emphasizes the urgent need for advanced technologies like AI to combat the growing complexity of ad tech fraud.
The shift from third-party to first-party data is crucial for advertisers aiming to enhance personalized targeting and accurately measure ad performance.
Linear TV advertising faces decline as digital platforms rise, urging brands to rethink strategies amid changing consumer consumption habits.
Deep dives
Understanding Ad Tech Fraud
Ad tech fraud presents a complex issue in the digital advertising landscape. While significant players like IAS and Double Verify estimate the problem to be below 5%, new research by Dr. Augustine Faux suggests that the actual figure could be as high as 35%. Fraud manifests primarily through the use of bots designed to mimic human traffic, which can skew campaign performance metrics. The conversation highlights the challenge of accurately detecting such fraud due to its sophisticated nature, as bad actors continually adapt their methods.
AI's Role in Combating Fraud
The fight against ad tech fraud is increasingly becoming a cat-and-mouse game, where advertisers need to employ advanced technologies for effective solutions. Artificial intelligence is being utilized to analyze patterns and predict fraudulent behavior in real time, significantly reducing the waste of advertising dollars. With constant shifts in fraud tactics, AI allows advertisers to stay ahead by making informed decisions before ad purchases. Collaborations with experts like Dr. Faux are crucial for developing strategies that improve market approaches.
Shifts from Third-Party to First-Party Data
The data landscape in advertising is evolving, with a marked shift from reliance on third-party data to focusing on first-party data. Advertisers are recognizing the importance of using their customer relationship management (CRM) data for personalized targeting and effective measurement of advertising outcomes. As platforms like Amazon excel by utilizing their transactional data, companies are encouraged to enrich their first-party data to gain deeper insights into their audience. This transition allows for more accurate measurement of ad performance, especially in a complex omni-channel environment.
The Future of Linear TV Advertising
Linear TV advertising is facing a significant decline, with predictions of rapid downturns within the next five years due to shifting consumer habits toward digital platforms. This transition has created opportunities for companies that can adapt to the evolving landscape of media consumption. Live sports continue to command substantial advertising revenue; however, overall linear model sustainability is in question. Brands and marketers must rethink their strategies as consumers increasingly prefer on-demand content over scheduled programming.
The Rise of Streaming Audio Advertisements
Streaming audio has emerged as a fast-growing segment within the advertising ecosystem, reflecting consumer demand for effective audio ad placements. Currently representing 10% of ad spend on platforms, this sector is expected to grow significantly, potentially reaching 25%. The high consumer engagement levels associated with podcasting and streaming audio make them valuable channels for advertisers. The personalized nature of ads within these mediums enables marketers to connect with niche audiences effectively, resulting in improved ad performance and revenue growth.
Tim Vanderhook is the co-founder and CEO of Viant Technology (NASDAQ: DSP), a leading advertising technology company that went public in 2021 at a $2.5B valuation.
In this episode of World of DaaS, Tim and Auren discuss:
The trillion dollar advertising market opportunity
Why linear TV is massively undervalued
The explosive growth of streaming audio
Fighting fraud in modern ad tech
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You can find Auren Hoffman on X at @auren and Tim Vanderhook on LinkedIn.