The news: In an exclusive interview with EMARKETER timed to its earnings report, LiveRamp CEO Scott Howe said the company's network effects and neutral market position are driving growth across commerce media, connected TV, and data collaboration markets.

For the most recent quarter, total revenues reached $195 million, up 12% YoY, with marketplace revenues rising 20% ($50 million) and subscription revenues increasing 10% ($146 million).

Key stats:

• The company now serves 125 customers with annual subscription revenues over $1 million, up from 105 last year.
• The company has established partnerships with more than 200 ad tech platforms and 200 data providers.
• The platform collaborates with 14 of the 15 largest commerce media networks. In its most recent quarter, LiveRamp partnered with Mohegan to create the industry's first casino media network.

Market position: LiveRamp maintains a unique position as a neutral player in the ad tech ecosystem.

• ​​It currently connects with 65 different demand-side platforms, though Howe believes this number is “too many” and expects the market to consolidate to “mid- to high-single digits” of key platforms.
• Amazon, Google's DV360, and The Trade Desk are the leading DSPs “in that order,” with companies like Xandr and Yahoo comprising a second tier of platforms.
• LiveRamp's position as what Howe calls “the power company” of ad tech allows it to partner broadly, as it doesn’t compete in media, agency services, or other adjacent businesses that might create conflicts of interest.

Some nice tailwinds: Budget releases and increased business confidence are driving new investment in advertising technology.

• According to Howe, significant advertising budgets, which were held back due to election uncertainty, were released in late November and December, leading to increased spending.
• A broader industry trend where "people are investing, CapEx is going up, R&D spend is going up" benefited LiveRamp's business, he added.

Our take: While larger technology companies continue to dominate the advertising landscape, LiveRamp's position as a neutral infrastructure provider appears to be paying dividends.

• The company's ability to connect multiple platforms and data sources while avoiding direct competition with major tech players suggests it will continue to benefit from industry fragmentation and the growing demand for data collaboration.
• The key challenge will be maintaining innovation pace while operating at a fraction of the scale of its largest partners.