Deals, Disruptions, M & A along with what’s New in Ad Tech
Digital Video and Mobile AdTech Growth 2016 – 2018 Post M & A Consolidation: Forecasts for Publicly Traded, Independent/VC-backed and Acquired Vendors
Despite some investor confusion about what valuation principles perfectly apply when benchmarking business model performance surrounding mobile/digital video ad tech companies (whether they are tech companies, media organizations, both or neither), publicly traded and privately-held vendors are forecast to steadily increase their share of the business through 2018.
Explaining the Wave of Ad Tech M&A: Ad tech firms find themselves between a rock and a hard place: on the one hand, the rise of the Facebook/Google duopoly; and on the other, the drought in financing. The predicament has raised calls for individual players in this fractured landscape to join forces. And that’s exactly what they are doing — or at least, trying to do.
Ashley Swartz, founder of Furious Corp, takes a look at the market forces at play driving some of the adtech sector’s biggest deals, and explains why disruption will not be what helps media thrive during these uncertain times.
In anticipation of its IPO, Snap Inc. has spent hundreds of millions buying various smaller companies such as adtech startup Flite, mobile search platform Vurb, computer-vision company Seene and bitmoji startup Bitstrips, and has recently acquired Cimagine Media, an augmented reality startup, in order to bolster its position in the emerging market. It will use Cimagine as its research and development center in Israel to develop its AR/VR initiatives to transform out of being a simply picture sharing app to a platform that debuts the most cutting-edge technology for the average mobile user.
Lung Huang, head of strategic partnerships at 84.51° says there have been more than 128 ad tech mergers or acquisitions in 2016. Half of all deals were within three categories: 33 publishers, 19 agencies and 12 advertising technology companies. While many may say this was needed for those 12 ad tech acquisitions, he does not think many more could have been accomplished and we could see more in 2017.
Using their smart app and audio coding, this startup is exploring new ways to help brands engage with viewers, driving sales. The widespread use of mobile phones has made it possible to explore more second screen options for startups like Appiness to get in and shake up the otherwise stagnant product placement segment.