Magnite Chosen as the Preferred Technology Partner to Enhance TELUS'; Connected TV Offering

Rhea-AI Summary

Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, has been chosen by TELUS (TSX: T) (NYSE: TU) as its preferred ad technology solutions partner in Canada. TELUS will utilize Magnite's SpringServe ad server and Streaming SSP for its Free Ad-Supported TV (FAST) and online video advertising inventory. This partnership aligns with the growing trend of ad-supported streaming, as 74% of Canadian consumers now watch streaming TV. The collaboration aims to enhance TELUS's TV offerings at no additional cost to customers, while providing advertisers with better insights and control over their campaigns.

Magnite's technology will allow TELUS to manage and monetize its connected TV (CTV) inventory more effectively. TELUS has already deployed FAST channels like TIME, Tastemade, and The Washington Post to its TV+ customers, offering new opportunities for advertisers and agencies to connect with audiences. Both companies are excited about the potential to redefine the Canadian advertising landscape and deliver premium ad experiences to consumers and brands alike.

Positive

• TELUS has selected Magnite's ad tech solutions, enhancing its CTV and streaming TV business.
• 74% of Canadian consumers are now watching streaming TV, indicating a significant market for ad-supported content.
• TELUS's deployment of FAST channels like TIME and Tastemade offers new opportunities for advertisers.
• The partnership aims to provide better insight and control over video ad experiences for TELUS.

Negative

• None.

Market Research Analyst

Magnite's collaboration with TELUS signals a strategic alignment in the evolving landscape of TV advertising. This partnership, focused on Connected TV (CTV) and video advertising, plays on the significant shift from traditional TV to ad-supported streaming. As a retail investor, it’s essential to understand the market trends driving this move.

The research cited in the release shows that 74% of Canadian consumers are now watching streaming TV, compared to 51% on traditional TV. This shift in viewer habits creates a fertile ground for ad-supported models like FAST (Free Ad-Supported TV). Magnite’s SpringServe ad server and Streaming SSP will likely enhance TELUS’s capacity to monetize this trend, offering advertisers a more targeted and controlled environment.

For TELUS, this partnership could be a growth catalyst in their entertainment and ad revenues, positioning them well in the competitive CTV space. Meanwhile, Magnite stands to benefit from being endorsed by a major telecom player, potentially boosting its market share in the advertising tech industry.

However, investors should remain cautious about the competitive nature of the ad tech market, where numerous players are vying for dominance. The success of this partnership will depend on the actual uptake by advertisers and the seamless execution of these new ad opportunities.

Financial Analyst

Financial implications of the TELUS-Magnite partnership should be scrutinized carefully. For Magnite, securing a deal with a major telecom like TELUS could translate to significant revenue growth. The deployment of the SpringServe ad server and the Streaming SSP may enhance Magnite’s revenue streams, considering the increasing shift towards ad-supported streaming models.

On the other hand, TELUS’s strategic move into the FAST channels can diversify its revenue sources beyond traditional subscription models. This can be particularly beneficial as it may lower customer acquisition costs and increase viewer engagement through free content. Additionally, it allows TELUS to tap into the lucrative advertising market, potentially enhancing its profitability.

Yet, investors should look at cost structures and potential ROI for both companies. Magnite's costs associated with deploying and maintaining advanced ad tech solutions should be weighed against the incremental revenue. For TELUS, the success will also depend on how effectively they can scale these new offerings and attract advertisers in a competitive landscape.

Tech Expert

The technological capabilities of Magnite’s SpringServe ad server and Streaming SSP are central to this partnership. These tools are designed to provide enhanced insight, transparency and control over video ad experiences. For TELUS, this could mean better-targeted advertisements, leading to higher ad efficiency and viewer satisfaction.

Investors should note that the ad tech landscape is evolving quickly, with a strong emphasis on programmatic advertising. Programmatic ads use automated systems and data analysis to buy and place ads, which can lead to more efficient and targeted advertising. Magnite’s solutions are built to leverage these trends, potentially giving TELUS a technological edge in the Canadian market.

However, technology integration can pose challenges. The success of this partnership depends on seamless technology adoption and operational efficiency. There’s always a risk of initial hiccups, integration costs and the need for continuous technological upgrades to stay ahead of competitors.

TELUS will leverage Magnite's SpringServe Ad Server and Streaming SSP to bring innovative advertising opportunities to the Canadian market

TORONTO, July 9, 2024 /PRNewswire/ - Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, today announced TELUS (TSX: T) (NYSE: TU), a world-leading communications technology company, has selected Magnite's SpringServe ad server and Magnite Streaming SSP as its preferred ad technology solutions in Canada. TELUS will utilize Magnite's ad server for its Free Ad-Supported TV (FAST) and online video advertising inventory.

The partnership comes at a time when the TV industry is undergoing a seismic shift, with consumers increasingly watching TV content through ad-supported streaming. According to research conducted by Magnite, 74% of Canadian consumers are watching streaming TV compared to only 51% who are watching paid traditional TV¹. Since rolling out FAST channels to TELUS TV+ customers in April, TELUS has enabled additional TV offerings at no cost to customers. The FAST channels, including TIME, Tastemade, The Washington Post, and more, also provide a unique opportunity for advertisers and agencies to elevate their digital strategies and connect with TV audiences.

Magnite's SpringServe ad serving platform is built for connected TV (CTV) and video advertising, providing TELUS with better insight, transparency, and control to deliver more optimal video ad experiences. Magnite's Streaming SSP enables TELUS to manage and monetize its CTV inventory with tools specifically designed to support premium, long-form video, and high-quality viewing experiences.

"Being selected to support one of the largest telecommunications companies in Canada and amplifying their CTV and streaming TV business is a great privilege for us," said Damien Véran, Head of Canada and LATAM at Magnite. "As TELUS' primary ad tech partner, TELUS is activating their set-top box, streaming, and online video inventory on the Magnite ad server and consolidating their audiences to combat fragmentation challenges for buyers. We are eager to forge new pathways that will redefine the Canadian advertising landscape for the better and create more impactful advertising experiences for their customers."

"Our collaboration with Magnite equips us with the best technology needed to deliver a premium advertising experience for both consumers and brands," said Amit Nag, Vice-President of Smarthome, Entertainment and Transformation at TELUS. "FAST channels represent a substantial growth area for our business, and we're excited to work with the Magnite team to create better advertising-supported content experiences for our customers and to make it easier and more efficient for advertisers to connect with Canadian viewers."

For more information about TELUS, visit www.telus.com and Magnite at www.magnite.com.

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1 Magnite Canada Streaming Report, 2023 [link]

About Magnite
We're Magnite (NASDAQ: MGNI), the world's largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world's leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

About TELUS
TELUS (TSX: T, NYSE: TU) is a dynamic, world-leading communications technology company with more than $20 billion in annual revenue and over 19 million customer connections spanning wireless, data, IP, voice, television, entertainment, video, and security. Our social purpose is to leverage our global-leading technology and compassion to drive social change and enable remarkable human outcomes. Our longstanding commitment to putting our customers first fuels every aspect of our business, making us a distinct leader in customer service excellence and loyalty. The numerous, sustained accolades TELUS has earned over the years from independent, industry-leading network insight firms showcase the strength and speed of TELUS' global-leading networks, reinforcing our commitment to provide Canadians with access to superior technology that connects us to the people, resources and information that make our lives better.

Operating in 32 countries around the world, TELUS Digital Experience (TSX and NYSE: TIXT) is a leading digital customer experience innovator that designs, builds, and delivers next-generation solutions, including AI and content moderation, for global and disruptive brands across strategic industry verticals, including tech and games, communications and media, eCommerce and fintech, banking, financial services and insurance, healthcare, and others.

TELUS Health is a global healthcare leader, which provides employee and family primary and preventive healthcare and wellbeing solutions. Our TELUS team, along with our 100,000 health professionals, are leveraging the combination of TELUS' strong digital and data analytics capabilities with our unsurpassed client service to dramatically improve remedial, preventive and mental health outcomes covering nearly 72 million lives, and growing, around the world. As the largest provider of digital solutions and digital insights of its kind, TELUS Agriculture & Consumer Goods enables efficient and sustainable production from seed to store, helping improve the safety and quality of food and other goods in a way that is traceable to end consumers.

Driven by our determination and vision to connect all citizens for good, our deeply meaningful and enduring philosophy to give where we live has inspired TELUS and our team to contribute $1.7 billion, including 2.2 million days of service since 2000. This unprecedented generosity and unparalleled volunteerism have made TELUS the most giving company in the world. Together, let's make the future friendly.

For more information about TELUS, please visit telus.com, follow us at @TELUSNews on X and @Darren_Entwistle on Instagram.

Media Contacts

Magnite
Kar Yi Lim
klim@magnite.com

TELUS Communications
Lena Chen
lena.chen@telus.com

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SOURCE TELUS Communications Inc.

FAQ

What is the recent partnership between TELUS and Magnite about?

TELUS has chosen Magnite's SpringServe ad server and Streaming SSP to enhance its Free Ad-Supported TV (FAST) and online video advertising inventory in Canada.

How does the partnership between TELUS and Magnite affect advertisers?

The partnership provides advertisers with better insights, transparency, and control over their campaigns, enabling them to connect more effectively with Canadian TV audiences.

What percentage of Canadian consumers are watching streaming TV according to Magnite's research?

According to Magnite's research, 74% of Canadian consumers are watching streaming TV.

What are some of the FAST channels deployed by TELUS?

Some of the FAST channels deployed by TELUS include TIME, Tastemade, and The Washington Post.

How will Magnite's technology benefit TELUS?

Magnite's technology will help TELUS manage and monetize its connected TV (CTV) inventory more effectively, providing a premium advertising experience for both consumers and brands.