Mad About Local

Earlier this week, prominent local CTV ad tech player Madhive announced the acquisition of local media ad sales workflow software and services firm Frequence - in a strategic move that merges their respective technologies and local market expertise, while significantly broadening Madhive's capabilities into omnichannel advertising.  We caught up with Madhive's newly-named President (and long-time local media ad pioneer) Jim Wilson to discuss how the deal will help catalyze Madhive's objective to become a more comprehensive local advertising solution for both national and SMB marketers.

TVREV: Many people recognize you as the pioneer of the CTV ad reach extension model during your time building Premion at Tegna. Could you provide some background on how you developed this model and how it has influenced your journey to your current role at Madhive?

Jim Wilson, President, Madhive: Premion was a fantastic opportunity where I built a great team and tackled the emerging CTV advertising format. At that time, CTV was a highly fragmented business. I've always been a strong advocate for local markets, having grown up in a local business environment, which has significantly influenced my career. Before Premion, I led TouchTunes and gained a deep understanding of local dynamics. Additionally, my experience with out-of-home advertising, which is inherently local, reinforced my appreciation for local markets' constant growth.

I believe that both local and national advertisers aim to deliver targeted messages to consumers based on their location. For example, a consumer in Northern Virginia might see a different ad than someone in another region, even if it's from the same advertiser. As the world becomes increasingly localized, Premion presented an excellent opportunity to introduce new products to local advertisers. Broadcasters, which provide local information and content, play a crucial role in promoting local businesses.

At Premion, the challenge was to navigate a fragmented market, and although the demand side remains fragmented, the supply side has consolidated over the years. Now, stepping into Madhive, I find myself in a different market landscape than when I was at Premion. This new chapter offers fresh opportunities to innovate and continue supporting local advertisers effectively.

TVREV: How did the Premion model address the challenge of enabling local broadcasters to achieve more granular targeting within their markets? Given their traditional broad targeting approach, how did CTV help them adapt to more precise, intra-DMA opportunities, and how will this experience inform your work with Madhive?

Wilson: Premion and Tegna have excelled from the beginning, thanks to strong support at the highest levels and effective sales leadership. Their success lies in educating their sales forces on market strategies and listening to client needs. With 30 years of experience in product development, I've always prioritized consumer-informed products. Premion's model focuses on working in local markets, building trust, and offering tailored products and services to local advertisers. They’ve effectively transitioned from selling ratings to impressions, despite the learning curve.

The partnership between Premion and broadcasters is crucial for reaching local markets. This synergy allows broadcasters to deliver targeted messages to the right audience at the right time. My passion for local markets drives my work, aiming to provide valuable products and services to local advertisers. Madhive is continuing on this path, enhancing local advertising strategies.

Madhive President Jim Wilson

TVREV: Madhive has primarily served as a powering agent for local broadcasters, helping them extend their reach into connected TV audiences and digital video. Can you provide some background on what Madhive has accomplished so far and explain how you plan to take it to the next level in the coming months?

Wilson: As you know, Madhive was originally built with a strong focus on serving local partners, which was crucial during my time at Premion. Initially, we searched extensively for a technology partner that could efficiently handle the unique needs of local markets—targeting, efficiency, and scale. Over the years, Madhive has established itself as a leader in efficiency, managing fragmentation across various platforms and consolidating inventory effectively.

Our platform not only optimizes inventory discovery at efficient prices but also prioritizes client ROI and audience outcomes. As client sophistication grows, we've expanded beyond efficiency to enhance client-facing products, focusing on what matters most to local clients: measurable outcomes and transparent reporting.

Transitioning from focusing solely on efficiency, Madhive has developed its own data marketplace to streamline local data usage. Having led both CTV and out-of-home businesses, I've learned the importance of an omnichannel approach. Today, CTV's growth and significance are undeniable, yet integrating it with other platforms is crucial for comprehensive marketing strategies. Our ongoing evolution emphasizes ease of use, cost-effectiveness, and increasingly, measurable outcomes within a multichannel landscape.

In the world of local marketing, understanding the multiple touchpoints of consumer journeys is crucial. One area that excites me is mapping customer paths to purchase. Imagine serving ads in a living room via CTV and then measuring foot traffic or other client-defined outcomes. Integrating CTV with retail media or digital out-of-home, often termed the 'last mile' between home and retail, where 85% of purchases occur, presents a significant opportunity.

Strategic integration across these channels can maximize impact. Adopting an omnichannel approach ensures cohesive planning and execution, delivering efficient outcomes that enhance client ROI.

TVREV:  And I suspect that's the driving strategy behind the [newly announced] acquisition of Frequence?

Wilson: Absolutely. As we explored the market and listened to our clients' needs for an omnichannel workflow, we repeatedly encountered Frequence. Meeting their team, who are deeply experienced in the industry over the past 13 or 14 years, we found a like-minded company focused on client-centric innovation. The synergy between us is clear: they excel in front-end solutions while we have a robust back-end. This marriage allows us to not only offer comprehensive omnichannel capabilities but also enhances our ability to innovate further. With Frequence joining Madhive, we combine our strengths to deliver innovative solutions driven by our shared culture and passion for local markets.

TVREV: Looking ahead, how do you envision the next six-to-12 months for Madhive post-acquisition?

Wilson: First and foremost, our priority is to ensure a seamless integration that prioritizes both our clients and employees. With past acquisition experience, I understand the importance of putting clients first, whether they're from Madhive or Frequence. Maintaining our commitment to innovation in CTV and digital spaces remains crucial. We're focused on leveraging our combined strengths to enhance our product offerings across all channels.

Frequence brings a similar customer base, which complements ours well. Our approach will center on aligning front-end client needs with our robust back-end platform capabilities. We're eager to explore new opportunities in multichannel marketing, including tailored product mixes and enhanced customer journey solutions. This integration also opens doors to new markets and enables us to provide comprehensive solutions for agencies and enterprise partners alike.

TVREV: Are you leaning towards a predominantly white-label powering approach where you empower local brands like stations and other heritage entities, leveraging their audiences and opportunities? Or do you foresee scenarios where you might engage more directly with clients?

Wilson: We've engaged in both approaches, and Frequence has as well. Our primary focus remains on being strong partners with our broadcast enterprise clients, empowering them in their local markets and supporting their client relationships. We're already involved with agencies and direct brands, ensuring it complements our broadcast partnerships without conflict.

Ultimately, I aim to comprehensively address the market, catering to national, regional, and local advertisers, as well as brands managing their own marketing. Our platform offers a robust feature set that can be tailored to their needs, ensuring we remain versatile and responsive to diverse client requirements.

TVREV:  Do you ever envision a role for Madhive to help guide the major ad-supported SVOD streamers towards more sophisticated, localized advertising strategies? It seems there's a significant opportunity to assist in smoothly integrating these national streaming ad propositions into intelligent local strategies, leveraging your expertise in an increasingly complex omni-channel environment.

Wilson: That's an excellent question. I have a history of working with streamers like Tubi and Pluto, where we facilitated significant growth. Today, broadcasters are expanding their streaming services and developing owned and operated content, which we help monetize. Major broadcasters like Fox, Scripps, and Univision are increasingly focused on monetizing their own inventory alongside additional content that complements their audience and objectives.

For many broadcasters, maximizing revenue from owned and operated inventory is a priority before expanding to monetize external inventory. We offer a comprehensive platform that not only facilitates the monetization of owned inventory but also integrates seamlessly with additional inventory sources to optimize reach, frequency, and desired outcomes.

Our Madhive Data Marketplace plays a crucial role in this ecosystem, offering efficient data solutions and a suite of tools designed to enhance local advertising strategies within larger streaming platforms. This includes everything from sophisticated targeting capabilities to front-end products that empower streamers to effectively manage and optimize their local advertising efforts.

Even for large streamers with their own local sales teams, our platform provides invaluable infrastructure and support to streamline operations, service clients, and maximize local advertising revenues. Whether it's providing access to multiple sales forces or offering a robust infrastructure, we're committed to enabling streamers to tap into the potential of local advertising effectively.

(Transcript edited for clarity and brevity)

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