Episode 121: David Kostman on the new Teads, and what’s next for the Open Web. Plus a Possible round-up and Apple’s big antitrust loss.
May 2, 2025
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David Kostman, CEO of Teads and former CEO of Outbrain, shares insights on the strategic merger between the two companies. He discusses balancing brand and performance advertising in the open web landscape. The conversation also covers highlights from the Possible event, including networking challenges and opportunities. Additionally, Kostman delves into recent developments in Google’s antitrust case, Apple’s loss in court, and the implications for the ad tech industry. AI’s role in content creation and future monetization strategies are also explored.
Teads' merger with Outbrain aims to integrate branding and performance strategies across multiple channels, enhancing advertiser engagement.
Adelaide introduces a new AU system that evaluates media quality based on potential attention metrics, transforming media investment decision-making.
AI is reshaping advertising workflows and creative processes, playing a crucial role in enhancing performance and user engagement strategies.
Deep dives
Adelaide's Innovative Approach to Media Quality
Adelaide introduces a new method for assessing media quality, branded as AU, which evaluates ad placements based on their potential to drive attention and outcomes before campaigns launch. This system is likened to a credit score but for media investments, providing advertisers with clarity and insights into quality prior to making purchases. By shifting the focus from just viewability to actual attention metrics, advertisers can make more informed decisions about where to allocate their budgets. This innovative approach positions Adelaide as a leader in transforming media verification and measurement within the industry.
The Evolving Landscape of Performance Advertising
Legacy advertising companies, including Teeds and Taboola, are evolving their strategies to focus more on performance advertising rather than traditional branding approaches. Teeds, following its merger with Outbrain, aims to create a comprehensive platform that integrates both branding and performance across various channels, including CTV (Connected TV). This shift reflects a broader trend where advertisers are seeking measurable outcomes and effective strategies that target consumer behavior. The shift towards performance-centric models marks a significant change in how these companies will engage with advertisers and publishers moving forward.
Teeds' Strategic Synergies and Platform Integration
David Kostman, the CEO of Teeds, emphasized the strategic synergies arising from the merger with Outbrain, highlighting the complementary nature of their services. The integration allows Teeds to leverage its unique advertiser relationships and premium brand partnerships to enhance performance-based offerings. With expectations of significant cost savings and a combined focus on branding and performance, Teeds is positioned to deliver improved monetization opportunities for publishers. This collaboration sets the stage for a more unified approach to media marketing that aims to drive measurable business outcomes.
The Role of AI in the Future of Advertising
AI is playing a pivotal role in reshaping the operations of advertising and media, providing new tools for enhancing performance and user engagement. Companies are exploring AI-driven solutions to improve workflows and creative processes, aiming to drive better outcomes for advertisers. For example, the integration of AI tools can help publishers enhance user interaction and engagement while also optimizing ad placements. As the advertising landscape continues to evolve, leveraging AI will be crucial for staying competitive and effective in reaching target consumers.
Antitrust Developments and Industry Responses
Recent antitrust developments, particularly concerning Google and Apple, are prompting significant discussions within the advertising space. Apple's recent legal ruling allows for external payment options in apps, which could change the monetization landscape for developers dependent on app purchases. Meanwhile, updates in Google's advertising practices signal a move towards greater transparency and flexibility, particularly relating to performance marketing. These shifts highlight the increasing scrutiny of major tech companies and the need for them to adapt their business models in response to regulatory pressures and market demands.
Eric and Ari catch up with Teads CEO David Kostman to discuss the company’s merger with Outbrain, navigating between brand and performance goals, and how the open internet fits into today’s media landscape. They also break down what stood out at Possible, the latest in Google’s antitrust case, Apple’s courtroom loss to Epic, and growing questions around PMAX and CTV strategy.
