Ad tech's 3 futures: New business models create a mixed bag for vendors
The $32 billion advertising technology (ad tech) market is a faster-growing subsegment of the $200 billion digital ad industry. With an 11.8% CAGR projected through 2021, ad tech is fast becoming the lynchpin for planning, executing and optimizing omnichannel campaigns for digital channels, including advanced TV. However, there are many other opportunities arising in the ad industry for ad tech vendors such as Google, Criteo (Nasdaq: CRTO) and The Trade Desk (Nasdaq: TTD) as well as multi-line technology vendors that directly or indirectly operate in this market, including AT&T (NYSE: T), Verizon (NYSE: VZ) and Comcast (Nasdaq: CMCSA). As a result, TBR believes ad tech is reaching an inflection point whereby three varying futures are possible, namely that ad tech will continue to add value through the monetization of content, require innovation to add value, or hold little to no value.