Magnite (MGNI) 28th Annual Needham Growth Conference Virtual summary

Key customer and industry trends

• Major global streaming and device partners are driving rapid growth, especially in connected TV (CTV), with international expansion opening new markets.

• Exclusive partnerships and custom tech stack builds with commerce and media companies like Pinterest, Spotify, and United are increasing, leading to deeper, longer-term relationships and higher business stickiness.

• The shift of data and audience curation from DSPs to SSPs is accelerating, making supply-side platforms more central and efficient in the programmatic ecosystem.

• Curation and exclusive exchanges are creating new revenue streams and improving take rates, though not at the scale of DSP data markups.

• DV+ business has outperformed expectations, with a diversified portfolio across open web, mobile, audio, and digital out-of-home, though open web faces structural headwinds from changing search and AI trends.

Data, curation, and revenue model evolution

• Data is increasingly stored and activated on the supply side, reducing DSP markups and making programmatic more efficient for advertisers.

• SSPs are monetizing data through higher CPMs and direct fees for curated or exclusive audience segments, especially when leveraging first-party data from partners.

• The trend toward exclusive, custom-built exchanges for commerce and media partners is leading to more predictable, long-term revenue streams and higher client retention.

• Performance-based advertising is seen as challenging for SSPs due to lack of control over inventory and creative, so CPM remains the standard auction metric.

• New tech stack builds for partners are initially lower margin but become accretive as they drive more demand and can be commercialized across clients.

Market headwinds and regulatory landscape

• Open web impression growth is structurally challenged by AI-driven changes in search and referral traffic, but premium, brand-focused publishers are expected to remain resilient.

• Generative AI and LLMs are creating headwinds for referral traffic but may also introduce new programmatic advertising opportunities as new entrants adopt SSP/DSP infrastructure.

• AI integration in ad tech is ongoing, with investments focused on future agentic models and protocol adoption, but significant revenue impact is not expected until after 2026.

• Regulatory outcomes from Google ad tech litigation could quickly and significantly benefit SSPs, with each 1% market share shift from Google potentially adding $50 million in revenue.

• The company is well-positioned to capture share if behavioral remedies are enacted, as existing infrastructure can immediately absorb increased auction wins.