“Our journey at Cadent has been one of constant evolution – starting with traditional TV, advancing to converged TV, and now embracing CTV. We've always known that audiences are not just tethered to video content. Our strategic vision extended to capturing audience attention across a wider spectrum of media,” noted Cadent CEO Nick Troiano. “When we partnered with Novacap, we reinforced our commitment to expand beyond our traditional strongholds.” 

ALAN WOLK (AW): What was the main impetus behind your decision to acquire AdTheorent?

NICK TROIANO (NT): The decision to acquire AdTheorent stems from our desire to embrace an omnichannel strategy, recognizing that audiences navigate seamlessly across mediums like display, social, and search. AdTheorent’s capabilities fit perfectly into this vision, allowing us to reach audiences more effectively, particularly in tier two and tier three markets.

AW: Focusing on tier two and tier three markets is interesting. Can you elaborate on this strategy?

NT: Our approach here is multi-faceted. The drive towards omnichannel is about recognizing that audience behaviors are changing – they're no longer confined to single-platform experiences. Then, there's the performance aspect. We’ve traditionally focused on brand reach and awareness, but there's a growing need for bottom-funnel solutions. This need becomes even more pronounced in tier two and tier three markets, where there's an appetite for more nuanced, localized, and performance-oriented marketing. AdTheorent gives us the capabilities and market penetration we need in these specific areas.

AW: Could you break down the 'three legs of the stool' concept you talk about with Cadent?

NT: Absolutely. The first leg, omnichannel, represents our commitment to engaging audiences wherever they are, be it TV, digital, or emerging platforms. The second leg is performance. Here, we're focusing on not just reaching audiences but driving specific, measurable actions. It's about linking ad exposure to tangible outcomes. The third leg is about market expansion. By tapping into tier two and tier three markets, we’re not just growing our reach; we’re diversifying our clientele and understanding of different market dynamics.

AW: With these changes, do you foresee any shift in your primary clientele? 

NT: Our roots are in working closely with agencies, and they continue to be our primary partners, constituting the majority of our business. However, as we broaden our offerings, especially in the omnichannel space, we might see more direct engagements with brands. Nonetheless, our agency relationships remain foundational to our business strategy.

AW: How will you be positioning Cadent now, especially in your pitches to agencies?

NT: Our pitch to agencies hinges on providing comprehensive yet flexible solutions. In today’s fragmented media landscape, agencies are grappling with delivering cohesive strategies to their clients.

Cadent’s approach in our pitches to agencies is centered around flexibility and choice, tailored to navigate this fragmented landscape.

Firstly, we acknowledge the complexity agencies face in today’s market. Audiences are dispersed across myriad channels, and this external fragmentation is mirrored within the agencies themselves, often resulting in them juggling multiple vendor relationships. Our solution to this is offering a spectrum of services that can be customized to fit the diverse needs of each agency and their clients.

Moreover, we also cater to agencies wanting to leverage third-party DSPs to program against our SSP. This level of flexibility is crucial in an environment where campaign strategies and platforms might need to shift in response to evolving campaign objectives or audience behaviors.

AW: What differentiates Cadent in a competitive market?

NT: Our differentiator is our comprehensive service range – from top-of-funnel brand awareness in linear TV to intricate, data-driven campaigns in digital realms. Our independence is another key strength, allowing us to adapt to various identity and measurement platforms, offering unmatched flexibility and choice to our clients.

AW: Can you share more about what made AdTheorent an ideal acquisition?

NT: Beyond strategic alignment, cultural fit was paramount. AdTheorent stands out with its sophisticated performance marketing platform – their expertise in using data and machine learning to deliver tangible results is exceptional. Furthermore, their stronghold in tier two and tier three markets complements our expansion goals. They have successfully navigated these segments, which is a testament to their team's capabilities and understanding of the market nuances.

AW: Can you delve into the nuances of working with tier two and tier three agencies?

NT: Certainly. These agencies often operate without the vast resources or extensive trading desks found in larger firms. This is where Cadent and AdTheorent can provide significant value. By offering comprehensive or modular solutions, we enable these agencies to amplify their offerings. This support ranges from leveraging our complete ad stack to selecting specific components that align with their and their clients' needs.

AW: How does Cadent interpret and apply the concept of "performance marketing"?

NT: Our interpretation of performance marketing is broad and client-centric. It's about generating real value, which can manifest in various forms like cost-efficiency, audience engagement, or specific campaign outcomes. Our approach differs based on the medium – from TV, where performance might be audience connection efficiency, to digital, where it’s more metric-specific like clicks or conversions. Our aim is to adapt to diverse metrics and deliver results across mediums.

AW: What’s your take on the role of contextual advertising, especially given privacy concerns and the rise of AI?

NT: Contextual advertising is increasingly relevant in today’s privacy-focused environment. It's a vital targeting tool that complements data-driven strategies. However, it's a balancing act – while AI pushes for extensive data use, contextual advertising requires a more measured approach. It's a dynamic area, and we're still exploring its full potential in conjunction with AI and other technologies.

AW: Lastly, how do you manage to translate digital audience strategies effectively into TV-centric campaigns?

NT: This is where Cadent excels. We have a strong track record of translating digital audience data into effective TV strategies. With our vast network of supply partners and our technological capabilities, we can find and engage specific digital audiences on TV at scale. The integration of AdTheorent's digital expertise is set to further enhance this capability, providing a compelling proposition for digital buyers looking to leverage TV’s potential.