Home Online Advertising LiveRamp Grows Revenue By A Third, But Still Needs More From Data Sales

LiveRamp Grows Revenue By A Third, But Still Needs More From Data Sales

SHARE:

LiveRamp reported revenues totaling $83 million in the company’s quarterly earnings on Monday, up 32% from the period last year.

LiveRamp’s revenue is split into two buckets, the core data onboarding subscription product and a “Marketplace & Other” category, which includes one-off data sales and features upsold by the company, like ad metrics that attribute campaigns to store sales.

The company’s onboarding subscription revenue grew well. LiveRamp went from 585 direct subscription customers a year ago to more than 690 today. And the number of accounts with annual rates of more than $1 million per year rose from 32 to 45.

The Marketplace & Other category houses some of LiveRamp’s long-term growth opportunities, like data sales and advanced television revenue, but it is still digging its way out of a hole since Facebook’s policy change last year, when the platform removed third-party data for ad targeting. Marketplace & Other revenue grew 27% year over year: But excluding the loss of Facebook sales that growth rate would be 76%, said CEO Scott Howe.

LiveRamp’s purchase data product, which connects online audiences and impressions to actual store sales, is a flywheel that LiveRamp needs to start spinning in order to accelerate marketplace sales. The company has 15 retail, ecommerce and payment partners that integrate purchase data for campaign measurement, and more than 50 customers buying that data, Howe said.

The purchase data offering creates a virtuous cycle for the advertising and measurement business (as industry heavyweights Google and Amazon have demonstrated). And it presents additional avenues for LiveRamp to work directly with brands and to upsell current customers.

CTV growth also accrues partially to the marketplace, Howe said, because those campaigns include more data sales and post-campaign measurement investments. Data Plus Math, the TV analytics startup LiveRamp acquired for $150 million in June, won’t be incorporated into earnings results until next the end of 2019, but the CTV business grew by a third without the new business and “our expectations with Data Plus Math have skyrocketed,” he said.

And Amazon is an opportunity of its own for LiveRamp. The company has dozens of clients that use Amazon APIs and expects to integrate with the Amazon DSP by the end of this quarter, Howe said. “Moreover, anything that drives awareness of advanced TV is good for our business.”

Must Read

Comic: Mr. Clean Room

LiveRamp Outperforms On Earnings And Lays Out Its Data Network Ambitions

LiveRamp reported an unexpected boost to Q3 revenue, from $160 million last year to $185 million in 2024, during its quarterly call with investors on Wednesday.

Google in the antitrust crosshairs (Law concept. Single line draw design. Full length animation illustration. High quality 4k footage)

Google And The DOJ Recap Their Cases In The Countdown To Closing Arguments

If you’re trying to read more than 1,000 pages of legal documents about the US v. Google ad tech antitrust case on Election Day, you’ve come to the right place.

NYT’s Ad And Subscription Revenue Surge As WaPo Flails

While WaPo recently lost 250,000 subscribers due to concerns over its journalistic independence, NYT added 260,000 subscriptions in Q3 thanks largely to the popularity of its non-news offerings.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Mark Proulx, global director of media quality & responsibility, Kenvue

How Kenvue Avoided $3 Million In Wasted Media Spend

Stop thinking about brand safety verification as “insurance” – a way to avoid undesirable content – and start thinking about it as an opportunity to build positive brand associations, says Kenvue’s Mark Proulx.

Comic: Lunch Is Searched

Based On Its Q3 Earnings, Maybe AIphabet Should Just Change Its Name To AI-phabet

Google hit some impressive revenue benchmarks in Q3. But investors seemed to only have eyes for AI.

Reddit’s Ads Biz Exploded In Q3, Albeit From A Small Base

Ad revenue grew 56% YOY even without some of Reddit’s shiny new ad products, including generative AI creative tools and in-comment ads, being fully integrated into its platform.