AdTech is an Interesting Place to Be

If Iamp8217m an investor the love for anything adtechrelated has faded and Iamp8217m already looking to put my money anywhere else that makes sense amp160Most adtech companies are only around because as Luma Partners founder and CEO Terry Kawaja has stated quotThereamp8217s a substantial amountamp160of guaranteed digital advertising spending each yearamp160and therefore a substantial number of startups eageramp160to get that cashamp160 But it doesnamp8217t necessarily translateamp160into sustainable business modelsamp8221 Thatamp8217s the signal that the adtech gold rush is over Those companies in it for the big returns stuck around too longOn the plus side most of the VC money is funding companies that donamp8217t offer enough value These companies add to the amp8220adtech taxamp8221 and in the process make advertising less effective for buyers and generate less revenue for publishers Perhaps most of the companies that remain will offer a differentiated product of real value Hopefully funding is there for companies offering real innovation in adtechWhat is getting investorsamp8217 attention is martech or amp8220marketing technologyamp8221 New developments in martech allow marketers to create a relationship with a consumer and truly measure what marketing efforts lead to desired results This level of analysis and attribution will transform how marketers use all their channels to reach people including adtechDave Helmrich of LiveIntent said in VentureBeat quotIf youamp8217re in this industry right now you want to be martechamp8221 No doubt that all the fun us tech types consider this fun is to help integrate a multitude of martech systems but the road ahead is going to be hard eMarketer reports that according to a survey of marketers worldwide by theamp160CMO Councilamp160andamp160RedPoint Globalamp160in Q1 2017 only 3 of respondents said all of their automation engagement and deployment tools are fully connected with data metrics and insights traveling freely between different technologies Only 34 have limited connectivityMost martech systems arenamp8217t ready for such integrations Marketers are finding they must clean up their data or that they donamp8217t have the data they thought they did Marketers will learn like publishers before them that they donamp8217t know their customers as well as they thought they did Not all customers want a relationship with a brand Martech is poised to do amazing things that both brands and consumers are going to love but it wonamp8217t be enough to eliminate the prospecting and wide reach approach of adtech Together however martech plus adtech will make for some very compelling storylines going forwardWith adtech funding drying up and all the cool kids moving to martech it appears that Google and Facebook are now inamp160control of the adtech space Often referred to as a duopoly for publishers it39s being stuck between a rock and a hard place No one should secede as much control over the value of their companies as publishers have to Google and Facebook These two companies alone will not provide sufficient revenue to publishers who need to invest to provide high quality journalism Publishers are going to have to rely on others in the adtech space to survive They are going to have to diversify their revenue streams across subscription models and ecommerceIt is the stories of how these companies innovate that will populate the pages of AdTechVillageThe detractors predicting an end to adtech may have a point But while much of the time we deliver a poorly targeted ad to too many bots I39ve also seen the industry evolve over the past two decades making amazing strides towards putting the right ad in front of the right person at the right time The piping is there to do more that is right but we need to reconnect the original partners of the whole advertising game Brand advertisers and quality publishers need to start transacting together in a more direct wayIf that begins to happen AdTechVillage is going to be a great place to liveClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this article are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated bloggersamp160amp160

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AdTech is an Interesting Place to Be

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Rob Beeler

"About That with Carl Mayer": Involved Media Connected Audience Fall 2024 Report (Episode 5) - By Carl Mayer

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