Yahoo Finance Magnite (MGNI) Partners With Brightcove to Boost Advertising
Magnite Inc. MGNI announced that it entered a partnership with Brightclove BCOV, which is a cloud-based platform for organizations to host, share and stream video content on the web.
Magnite will provide services to the customers of Brightclove to help them increase their advertising engagement. SpringServe, which is an advanced ad server for CTV, will also be integrated into Brightclove to provide publishers with greater control, insight and transparency into available ad inventory.
All the features of Magnite will help customers gain access to video-centric advertising tools and real-time reporting across their traditional direct and programmatic sales channels.
Per Enlyft, Brightclove serves around 18,743 companies worldwide, possessing a market share of 15.6%. This brings an opportunity for Magnite to expand its ad services to a larger customer base and provide smooth efficient offerings that could bolster its top line.
Magnite to Gain From Growth of SpringServe
The acquisition of SpringServe in 2021 has benefitted Magnite, as its CTV business has been seen as a growth driver. SpringServe added 45 clients in the first three quarters of 2022 and saw more than 80% growth in ads served during the same time frame. This drove Magnite’s revenue ex-TAC attributable to CTV to $56 million, up from $43 million or 29% year over year in the third quarter of fiscal 2022.
Fubo TV FUBO, which is a live sports streaming platform, was one of the big clients onboarded by SpringServer on Magnite in December. The partnership has allowed Fubo to leverage features of SpringServe that include Bingewatcher, an automated review tool that enables accurate analysis and management of video ads to provide optimized and seamless ad experiences to consumers.
Beside Fubo, SpringServe began serving renowned organizations such as OneFox, Vizio, rlaxx TV, Krogers and Disney. Disney’s recent launch of the advertising video-on-demand model could bring even bigger business to Magnite in the coming years.
CTV advertising is a growing trend and Magnite could continue to aid its growth from this division of the business. Per Statista, the connected TV (CTV) that accounted for 4.7% of the total advertising spending in the United States in 2021 is expected to rise up to 6.9% by 2025.
Magnite, Inc. Price and Consensus
Magnite, Inc. price-consensus-chart | Magnite, Inc. Quote
However, in the near future, the advertising market is expected to decline due to rising costs or upcoming recessionary fears, which is causing companies to cut expenses. Insider Intelligence slashed global ad spending for 2022 by 6%, which could impact Magnite’s revenues for the coming few quarters.
Shares of Magnite have declined 31.9% year over year compared with the Zacks Computer & Technology Sector, which fell 32.2% in the same time frame.
Zacks Rank & Stock to Consider
Magnite currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock in the Zacks Computer & Technology sector is Arista Networks ANET, currently sporting a Zacks Rank #1 (Strong Buy).
Arista Networks has lost 13.3% in the past year. The Zacks Consensus Estimate for earnings is pegged at $1.21, which has been unchanged over the past month.
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