[Logan]

How an advertising minnow outgrew the big beasts

Even after years of trying, he (TTD CEO) admitted it is still hard to explain the business model to people unfamiliar with the industry. “My mother still has no idea what I do,” he said.

The CEO of The Trade Desk himself has said even after years of trying, still many people don’t understand the business model properly. (I’ve been saying the same thing from the day I started writing here. The adtech industry is very complex and when BCG came to the market, not everyone understood it properly and only a few people did. The management didn’t take the effort to inform the markets properly).

The adtech groups that were meant to revolutionise the industry with automated, real-time and highly targeted ad buying have mostly come and gone, chewed up by a fast-changing sector and ferocious competition from Silicon Valley.

Even those that have survived — such as AT&T’s Xandr and Criteo — have been affected by tougher privacy rules and new restrictions on the data flows that are the sector’s lifeblood.

Many companies have failed to survive in adtech industry and even the big players have struggled. When I said this, some people mocked me but the reputed “Financial Times” has said the same thing.

Coming to BCG, business wise they know what they are doing and we will always support them but the problem has always been market/stock related and the management didn’t give importance to investors. They need to improve a lot on that.

Now, thankfully, everyone understands the importance of adtech sector and they are understanding the business model properly and if BCG improves on transparency then people will value the company properly.

[VALUEBUYER001]

Thanks Logan sir for your link regarding TTD Trade desk

[Anonymous]

@Logan thanks for this beautiful article. Mr. Green pointed out one point and moreover he is very confident that trade desk not for sell that he told his investor. In his own word of Mr. Green ” I said to our first large investor:this is the first thing I’ve ever created that was not built to sell.” Logan, I think this kind of statement from CEO enough to lift confidence of investor. Yes, it is true no body knows what lies ahead tomorrow, but commitment to move and work ing hard on that direction most important and that he is doing vigorously. One of article on Mr. Murthy, he told “to retain the trust of your investors, it is better to under promise and over deliver.” I think perfectly it matches with trade desk.

[odysee]

@Logan, do you really believe that the BCG management will give importance to the investors and improve on transparency and communication skills?
Proper valuation of the company has never been a priority for the management and I’m not so sure that the brains’ trust of BCG believes that there is a compelling need or desire for it to change tack.
(A totally misplaced belief in my opinion)
But who knows? Maybe the leopard will go for a makeover and actually rearrange its spots!
I truly hope that Mr Reddy and his team pay some heed to the very sincere and positive suggestions made by you over the last many months and some other members on this forum.

[odysee]

My apologies @Logan. Thank you for sharing that excellent article in the Financial Times on The Trade Desk.

[jmathew]

I understand YMA will back to BCG once Daum is settled. Please share your views.

https://www.bseindia.com/xml-data/corpfiling/AttachHis/99e26139-a316-428a-bfa2-901648ab5bd4.pdf

The Company’s FY2019 revenue is $368.8 million, which represents a 1.9% decrease over the FY2018 revenue of $375.9million. This decrease in revenue is primarily coming from decrease in YMA revenue of $13.6 million countered byincrease in OMS contributing $6.1 million, followed by Dream Ad Group increase at $3.2 million. The YMA Consolidated subsidiary which holds the LYCOS brand, has been handed back to Duam Communications in a court receivership, pending a final acquisition payment. It should kept in mind that the consolidated revenue only decreased marginally
even after removal of the revenue from an entire subsidiary

[Logan]

@VALUEBUYER001 and @odysee, if you want more articles like that then I can share them here. There are many articles on TTD, Criteo and other adtech companies where they talk about the importance of programmatic advertising and other ad related stuff. They all are very interesting to read.

[VALUEBUYER001]

Logan sir you please provide us some articles like you mentioned so that I can know more about the adtech industry which BCG is in.thanks in advance.

[odysee]

@Logan, I wonder where BCG would be if it were listed on Nasdaq or some prominent overseas exchange. The bulk of the ad tech and digital advertising business of the company is in international markets and so are most of the profits, translating into handsome earnings per share. Growth would possibly have been easily managed as raising funds would have been so much easier with a realistic market valuation, as recognition of the business and the industry is well in place.
Instead, we have local ‘analysts’ continuing to harp upon software services and information technology etc. with a crude analysis of the numbers without even a glance at the positioning of BCG in the international digital advertising and ad tech space and the other internationally known players that that it rubs shoulders with.
Such is the irony and downside of the listing here.

[Anonymous]

@odysee I hope Mr. Peshwa will guide to make the company in different league. In 2016, trade desk ipo came below $20 now. it is over $650 now. I personally believe if trade desk is gold then brightcom is diamond. Management should now focus one issue at a time and solve quickly.

[odysee]

Thank you for your comments ( #8911) @Logan.
Your last sentence is of particular importance. How can any promoter or CEO not want to be trusted by the stakeholders? I really cannot fathom any thinking contrary to that. And shareholders and admirers and supporters have been bleating for years for SKR to adopt a radically new approach in dealing with the public and the markets. As you said, he’s a really smart guy but handicapped by his reluctance to win over the hearts and minds of his shareholders and other stakeholders.
We were all immensely pleased with all those professional presentations released earlier this year about the company and the nature of its business and the financials for the last 5 years. And these had followed your painstakingly prepared commentaries detailing the journey of BCG from inception and particularly the fund raising and acquisition and growth phase.
And I’m sure many us exclaimed -‘wow, now BCG is truly coming of age’, and the future looked so very promising from a shareholder’s perspective.
Alas, it was not to be- at least for the time being.
But as you hope, and we along with you, that the time has come for Mr Reddy to “take the right decisions”.
With 50,000 odd shareholders cheering him on, he has no other option.
Fingers crossed (just in case..)

[Anonymous]

The tough times ahead. Some of the article are suggesting. My personal opinion winter is a make or break situation. Business Insider following articles just read
1. 76% of companies plan to slash their advertising budgets this year-
2. Ad holding company giant Havas laid off 200 pal as clients slash spending.
3. Samsung cancelled a review of it’s review of it’s $845 million US advertising business due to the pandemic.
4. Layoffs and furloughs hit holding companies WPP, Omnicom, and MDC partners as advertisers slash spending.
See this is the reality due to pandemic. First wave result these are. Second wave if comes god forbid it will rattle whole industry. I really feel sry expecting from him LOC soon not realistic. Mr. Suresh knows the ground reality if he gets LOC and simultaneously if second wave starts then he has to rethink how to use this LOC. After reading those 4 article I understand one thing about delay of LOC happening definitely there is reason. I always believe there is genuineness in god’s plan. I will wait at least summer for LOC to happen. We can’t rule out a recession. Please dear all go through these articles.

[Anonymous]

@Logan I really respect your writing. To be honest, you have depth knowledgeable. But really feeling sad for reacting too much on loc. Logan, I am nervous honestly about second wave. Ppl may feel I am overreacting. But history witnessed second wave always destructive than first. I follow CNN. yesterday, when they told north Dakota, South Dakota, Wisconsin, upper Midwest. Logan I completely trust your analysis. But a bit nervous. I hope one day talk to you over phone. I always ready to learn from you. I am very open. Take my respect. Hope talk you one day. Take my respect.

[Anonymous]

@ Logan depth knowledge

[Logan]

Investors Should Love Walt Disney’s Latest Move

Walt Disney (NYSE:DIS) made a surprising move this week that sent its stock surging higher. The media giant announced a reorganization of its business that will accelerate its transition from traditional television to streaming.

Disney has good reason to accelerate its efforts to grow its streaming business. In the company’s third quarter of fiscal 2020, Disney+ subscribers hit 57.5 million, up from 33.5 million just three months earlier. Further, Disney’s Hulu subscribers increased from 32.1 million to 35.5 million over this same period.

Why Magnite Stock Surged Higher on Tuesday

The gain follows news that Walt Disney (NYSE:DIS), a major Magnite customer, is accelerating its efforts in streaming by creating a distinct unit focused on the distribution and monetization of its streaming content.

Magnite, which has an exclusive contract with Disney’s Hulu to serve all of the major streaming platform’s connected-TV ad inventory programmatically, could benefit from Disney’s invigorated effort to distribute and monetize streaming content.

[Logan]

@Antu, no problem, we all have doubts and confusions on many topics. We can have meaningful discussions in this forum which will benefit everyone.

Not only you but everyone is nervous about the second corona wave so it’s natural to share your views and opinions on that topic.

I don’t know much about the LOC process so I won’t talk about it. Only the CEO could clear your doubts.

See the above post #8924, most of the major networks are converting their traditional business to streaming which will benefit adtech companies. Magnite Inc signed a new deal with Walt Disney. Disney+ subscribers have increased in just 3 months (33.5M to 57.5M).

We can see the same in IPL also, more people are streaming it instead of watching it on TV.

So for BCG, business wise, there are more opportunities (not just for present but for future too) but we don’t know when all the positives will reflect on the price. Even after posting good results BCG’s stock fell so it’s mostly to do with not resolving the outstanding issues yet.

[odysee]

Sounds promising @Logan as per your comments @#8925.
But is there some grand design that we cannot see behind this strategy of not settling outstanding issues?
If the objective of the management was to destroy the share price and make retail shareholders really unhappy and lose whatever little trust and faith remained, then it has succeeded admirably.
Maybe the directors of BCG should replay the recording of last December’s conference call, in which this old gentleman( the first caller) appeared to be almost in tears when he recounted his having divided his investment into two equal parts- one in a fixed deposit with a bank and the other in Lycos Internet. The Lycos ( now BCG) investment value was at about 1/10th the FD value at that point of time in December 2019.
Unconscionable!

[odysee]

I should add that there is always a risk when investing in equities and one may or may not get a return. But this chap was specifically told to keep the faith and persevere for a bit longer as the company was at an inflection point.
He’s still persevering I guess.

[Anonymous]

Internet of Things article.

Tittle is: What is the IOT?Everything you need to know about the Internet of Things right now.

[Logan]

Better Buy: Roku vs. Magnite

The pandemic has accelerated the development of all sorts of business trends and technology. Two of them are digital advertising and connected TV (CTV).

Growth now, profit later

Neither Magnite nor Roku currently operate with the intent of maximizing profitability. Rather, both operate at a loss in order to capitalize on the growing CTV and digital ad market. Over the last 12 months, Magnite reported negative free cash flow of $16.7 million, and Roku reported negative free cash flow of $45.8 million.

[Author]

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