Should Simpli.fi prioritize expanding its addressable OTT/CTV inventory or focus on enhancing its existing programmatic display offerings to improve advertiser ROI?

Introduction

The trade-off question at hand is whether Simpli.fi should prioritize expanding its addressable OTT/CTV inventory or focus on enhancing its existing programmatic display offerings to improve advertiser ROI. This scenario involves balancing growth in a rapidly expanding market segment against optimizing current core offerings. I'll analyze this trade-off by examining the business context, user impact, technical considerations, and potential outcomes.

Step 1

Clarifying Questions (3 minutes)

• Based on Simpli.fi's market position, I'm thinking OTT/CTV might be a newer offering. Could you provide some context on our current market share and growth rate in OTT/CTV compared to programmatic display?

Why it matters: Helps assess the potential impact of expansion vs. optimization Expected answer: OTT/CTV is growing rapidly but still a smaller portion of revenue Impact on approach: Would influence resource allocation and risk assessment

• Considering our revenue model, I'm assuming we operate on a percentage of ad spend. Is this correct, and are there any differences in our revenue structure between OTT/CTV and programmatic display?

Why it matters: Affects financial implications of the trade-off Expected answer: Similar revenue model, possibly higher margins in OTT/CTV Impact on approach: Would influence prioritization based on profitability

• Regarding user impact, I'm thinking about our advertiser segments. Can you share insights on which advertiser segments are showing the most interest in OTT/CTV versus programmatic display?

Why it matters: Helps tailor our strategy to meet evolving advertiser needs Expected answer: Larger brands leaning towards OTT/CTV, SMBs still focused on display Impact on approach: Would inform targeting and feature development priorities

• From a technical perspective, I'm curious about the scalability of our current OTT/CTV infrastructure. How does it compare to our programmatic display capabilities in terms of handling increased inventory and demand?

Why it matters: Assesses feasibility and resource requirements for expansion Expected answer: OTT/CTV infrastructure newer, may require significant investment to scale Impact on approach: Would influence timeline and resource allocation for expansion

• Considering our current team structure, I'm wondering about our expertise distribution. Do we have dedicated teams for OTT/CTV and programmatic display, or is there overlap?

Why it matters: Affects our ability to execute on either strategy effectively Expected answer: Some overlap, but specialized skills required for each Impact on approach: Would impact hiring needs and team restructuring considerations