Magnite, a leading sell-side advertising company, has made a strategic move by acquiring streamr.ai, a company specializing in generative AI technology. This acquisition aims to simplify the process for partners working with small and medium-sized business (SMB) clients, helping them tap into the growing world of connected TV (CTV) advertising and increase their ad spending.

While the financial details of the transaction remain undisclosed, this purchase comes at a time when CTV players and publishers are keenly eyeing the SMB market as a significant opportunity. Historically, smaller brands have relied on search and social platforms like Meta, Google, and YouTube for advertising, as these platforms offer easier targeting options, even for those with limited resources.

To attract these smaller brands and facilitate their entry into CTV advertising, several CTV players have launched self-serve platforms and tools. Examples include:

• Roku Ads Manager
• Comcast’s cross-publisher Universal Ads

These initiatives aim to reduce the barriers of cost and complexity associated with TV advertising. With the acquisition of streamr.ai, which provides AI-driven tools to make CTV advertising more accessible for SMBs, Magnite is poised to enhance this effort. The independent supply-side platform (SSP) plans to integrate streamr.ai’s technology into its ecosystem, benefiting partners that work with SMBs, including agencies, retail media networks, and demand-side platforms (DSPs).

streamr.ai addresses a common challenge faced by SMBs in CTV advertising: the cost and resources required to create video ad content. Their platform can generate video ads and launch them on CTV in under two minutes, streamlining the campaign setup process.

“The CTV advertising opportunity for small businesses is enormous, but it’s been bottlenecked by complexity and high costs,” said Michael Barrett, CEO of Magnite. “streamr.ai’s technology uses AI to accelerate this transition for SMBs, making tasks like CTV creative generation and campaign setup much easier. By offering these tools to our ecosystem partners with SMB clients, we aim to unlock a significant revenue opportunity for our CTV publishers.”

So, how substantial is the SMB CTV advertising opportunity? According to data shared by Advertiser Perceptions with StreamTV Insider, there were approximately 6.2 million SMBs in the U.S. in 2023, contributing a staggering $99 billion in annual ad spend. Despite this significant market, many SMBs have yet to venture into TV advertising.

While global search and social platforms like Meta claim an SMB advertiser base of around 10 million, a large portion of the SMB market remains untapped in the CTV space, presenting a lucrative opportunity for publishers, as highlighted in Magnite’s announcement regarding streamr.ai.

For a comprehensive analysis of the SMB opportunity in CTV, including market insights, historical barriers, and new tools that empower SMBs to leverage the benefits of CTV advertising, click here.

Beyond the revenue potential for publishers, CTV also offers advantages for SMBs. Its dynamic large-screen format, combined with data-driven targeting and measurement capabilities, continues to evolve. As noted in StreamTV Insider’s report, CTV aligns SMB advertisers with premium content in a brand-safe environment, enhancing upper-funnel brand awareness and complementing other digital marketing channels.

In today’s announcement, streamr.ai co-founders, CEO Jonathan Moffie and CTO Frank Turano, will be joining Magnite. “Magnite is the perfect home for our technology and talent,” said Moffie. “Magnite shares our vision for helping small businesses grow revenue through CTV advertising, and their relationships and resources will enable us to accelerate that process.”

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