Teads CEO Pierre Chappaz: “What’s Unique About LatAm is Mobile”

Portada sits down with Teads CEO Pierre Chappaz to discuss the latest in advertising technology, the company's pioneering of outstream video and just what makes Latin American audiences unique.

By Gretchen Gardner

According to Pierre Chappaz, Teads is the "champion of quality" when it comes to their inventory of native video formats and tailored pierreofferings for publishers. Tead's spectacular growth (the company distributes one billion videos a month) suggests this may be true, so what's behind the success?

What is clear is that Chappaz and the team at Teads understands what Internet users want, and they don't try to fight it. "Outstream means video ads that are sitting outside of the video content. We don't do pre-roll, which is this forced advertising that the users hate, so we have invented outstream video, which is more precisely described as native video advertising because this is video ads which are inserted in a smart way into editorial content."

Some observers claim that in-article outstream ads will become a commodity and run the same fate as banners and display advertising. Chappaz disagrees, describing native video advertising as a "gamechanger" that has brought major brands like Samsung, Cartier, Microsoft and UBS to the company as partners for video advertising content. To Chappaz, this impressive roster grew out of Teads' ability to offer an alternative to pre-roll that users would actually watch.

Chappaz explained that when users see a pre-roll ad, "they open another window, they open another tab, and they come back when the ad is finished," and that "brands end up spending money for ads that nobody sees." With Teads' opt-in native video format, every ad that is viewed has been selected by an engaged, interested user. While it's easy to assume that nobody would choose to watch an ad, Teads' success suggests otherwise.

We don't do pre-roll, which is this forced advertising that the users hate, so we have invented outstream video, which is more precisely described as native video advertising because this is video ads which are inserted in a smart way into editorial content.

And what about LatAm? Chappaz believes that the space for growth in the region is "absolutely enormous," which explains the company's new presence in Brazil, Argentina, Colombia, Mexico and Miami. And the most unique aspect about Latin America? The use of mobile, Chappaz says. Which works for him, because Teads'inventory is much more suitable for mobile than desktop, and since mobile is a very "personal screen," it is a very effective format for reaching audiences.

Chappaz asserted that Teads is currently the largest video network in all of Latin America except for Brazil, where he believes they will come out on top by the end of this quarter.

When it comes to standards for native video, Chappaz expressed particular concern for those of targeting and viewability. According to MSEAI standards, "a video is considered viewable if you are seeing 2.5 seconds on the player. We would understand that as very weak. Completed views, for instance on mobile, 10 or 15 seconds, on desktop, 30 seconds, this is a completed view. This is a real view a brand should be happy to pay for. But 2 seconds, what is that?"

It almost sounds like Teads has it all - they've found a way to reach audiences without forcing them to watch videos they don't like, and they're conquering markets all over the world. What's the next big thing? Taking advantage of the migration of users from TV to Internet. Chappaz is sure that the primary screen will be mobile, not TV, sooner rather than later. Teads' FFP technology, which was released last summer and has been implemented for some of the world's biggest publishers, is set to trump DSP in terms of quality, says Chappaz.

It's an exciting time in the industry. Teads is proof that quality may be better than quantity, and that viewable ads aren't necessarily forced down peoples' throats. It's a novel concept - perhaps the first of many we will see from this innovative company.


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

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