Are The Emerging Titans Of AdTech Credible Competition To Google And Facebook?

If there’s a truism that can be found in the field of digital advertising, that is, there’s Google, and then there’s Facebook, and there’s everybody else. The advertising duopoly made about 65% of all digital ad revenue in 2021 according to the eMarketer.

Could we be just on the verge of a reverse in this trend that has been going on for a decade?

According to a November eMarketer report that Google’s share of online advertising is expected to fall to 35.9 percent next year, down from 36 percent this year. Additionally, Facebook will drop from 28.6 percent in 2021 to 27.7 percent next year, then fall to 26.4 percent by 2023. Besides, the increasing competition from Amazon and Amazon, which the report predicts will increase to 14.6 percent in just two years.

A large part of what’s happening in the meantime is experiencing massive changes in the ecosystem.

In the first place, as smartphones have become the predominant media, mobile-first ad networks are taking on more and more roles in advertising in general and mirror the almost complete change from offline/TV to digital that took place ten years ago. In addition, that lucrative smartphone app installation segment, which was shattered by Apple’s recent privacy reforms and Google’s highly-anticipated ones, has consciously bought competitors and other functions to expand, gain more first-party data and compete with larger platforms.

But is that enough?

“We truly are that scaled another to big tech — Facebook, Google, and others — able to help the mobile marketer build and grow their engaged mobile audiences,” Liftoff CEO Mark Ellis told me in an interview. recent Tech First podcast. (Full report, I co-host a podcast for Liftoff.) “And most prominently, we are individual from the perspective that we do not own content or another assets that may compete with those customers we serve.”The new giants of mobile advertising have developed features in a way that is far more than traditional ad networks. They include demand and supply-side platforms, mediation capabilities, ad exchanges identity solutions, agency services analytics, measurement capabilities and many more.

They’ve accomplished that by market and private equity first.

IronSource is a publicly-traded company that boasts its $9.2 billion market capitalization and an extensive list of acquisitions: Upopa, Supersonic Ads, Joomla, Luna Labs, Tapjoy, Bidalgo, Supersonic Games, and more. Applovin, a $35 billion competitor Applovin acquired twitter’s MoPub with a dramatic billion-dollar deal just last week which was added to a classy trophy case that is already covered in logos including Lion Studios, MAX, SafeDK, Machine Zone, & Adjust. Other players such as Digital Turbine have built up their own arsenal of capacities, market share and customers. list of purchases that included AdColony, Fyber, and Appreciate.

Would you please take all of this together? Add it all up, and the once-split market of thousands of mobile-based adtech companies is beginning to come together, which is likely to continue to accelerate.

Google and Apple have a hand in this regard, according to Ellis.

The increased demands for privacy have led to fewer opportunities to share data. Since data from third parties can’t be shared, while first-party data is still accumulating and accumulated, the industry’s solution is to collaborate.

“There certainly have been some swap that have been imposed with Apple’s SKAN and ATT framework, formally launched in April of this year, announced June of previous year,” he adds. “And I think Google is also begin to take some steps in a direction that is meant to help greater user privacy around user data.”

The more first party data you have, the better your capability to detect, view and track data about people and devices. This means that there is more capacity to show ads relevant to them which was previously simple with third-party information.

“It helps the consumer have more efficiency, both with leveraging their customer data and their ad budgets, and allows scaled partners to be able to drive better outcomes at scale.”

Scaled Partners is a code word for large advertising firms.

Liftoff, which claims to offer more than a billion ads every day, isn’t unaffected by this trend to more extensive integrated advertising networks. It has joined forces with Vungle and offers ads on more than one billion devices, and has already purchased four related businesses: AlgoLift, GameRefinery, JetFuel, and TreSensa.

They are both owned by the private capital investment company Blackstone, which has about 600 billion dollars of assets under management and apparently believes that one asset was superior to two smaller purchases.

At the very least in advertisements.

There’s a long distance to get to Google and Facebook size.

If Google completes nearly 100,000 requests for search per second and each one has five advertisements on average, that’s 43 billion ads a day. That’s not even counting Google advertisements displayed on millions of websites or within more than 600,000 apps. I wouldn’t be too surprised when Google had been running more than 100 billion ads each day.

There isn’t a single competitor to ad networks that comes as close to this, except, perhaps, for Facebook.

The new wannabe adtech giants exacerbate this problem due to the growing privacy regulations. Old-fashioned garden walls are back with a new look.

Reddit, AKA “the front page of the internet,” recently stopped programmatic advertisement access to its inventory. If you wish to run ads on Reddit, you’ll have to negotiate with Reddit directly. It’s becoming more lucrative for platforms with their inventory, such as Snap, Twitter, Pinterest, TikTok, etc. As with the well-known major’s Google and Facebook, They have an in-depth understanding of users’ habits and preferences due to the constant and long-lasting interactions with the platform’s products and services, supplying excellent first-party privacy-safe data to use to target ads.

Of course, it can freeze out traditional ad networks, which thrive with open systems that permit any ad agency to sell any amount of inventory.

It’s probably one of the reasons that some advertising networks have invested in apps on which their advertisements can be shown. ironSource purchased Supersonic Games, Applovin bought Machine Zone, and owned Lion Studios that produce games such as Matchington Mansion, Project Makeover, Final Fantasy XV, and Game of War.

This could mean that many people, full of money coming from IPOs and private equity companies, will continue to purchase competing and complementary pieces of the puzzle.

Certainly, the combination Liftoff and Vungle certainly.

It’s not all that big to be able to break into castles of contents marketed by inside-the-moat owned advertising tools — called content fortresses, as the industry expert Eric Seufert dubs them -which is why general-purpose ads networks, if you could define them, will always have their function.

Of course, castles made of content, such as Facebook or services such as Google with email and search and video are appealing if people are eager to enter the court. The tools you use to provide your platform with the ability to ensure that companies can connect with people inside the walls can be lucrative if there is enough of them that they are attractive to advertisers. Therefore, any decrease in the audience, such as Meta’s primary Facebook service for younger users, may reveal holes in the castle’s walls.

There’s a second issue with sure of them: measuring the impact.

“In the case of some of the bigger tech, they are self-attributing networks,” Ellis says. Ellis. “So basically they grade their assignments and define the criteria for what they did about the campaign of a customer. I believe that the customers ought to demand more, should be able to have more transparency, and should have a consistent method to evaluate how their money was performing in one set against the other.”

In the present, the castles are more vital than ever before, due in no small part to Apple’s privacy efforts which make first-party information better than before and third-party data more challenging to obtain.

However, when the new titans – -miniature titans are continuing to expand organically and acquire new customers, the balance of power in adtech may change.

eMarketer forecasts a slight decline in market share due to Facebook along with Google.

The month before, Facebook was blamed for the privacy rules of Apple for the lower-than-expected quarterly results, and Snapchat (yes, Snap) accused Apple as well blame for the revenue loss that led to an increase of 25% in its stock. Google is, thus far has been able to get through the quarter without a hitch, likely due to its more diverse collection of properties and advertising experiences in comparison to Facebook and also because Google’s search function as a proxy of purchase intent is still more helpful for advertisers than social media.

However, this year more so than in the last few years’ days, we’re seeing the possibility — not the possibility to be sure -that the adtech sector is generating new titans.

It is also evident that the duopoly (triopoly when you add the hard-charging Amazon) isn’t quite as invincible as it previously has seemed.

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Adam Collins
Adam writes about technology, business and economics. With master's degree in Economics, he's presented six papers in international conferences. As a solivagant in the constant state of fernweh, curiosity is the main weapon in his arsenal.

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