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If you do business in online advertising, there is one trend that you can’t help but notice in 2021 – the unprecedented number of mergers and acquisitions in the market.
Let’s run a quick check to see if you’ve missed out on any of the biggest buys of the year. here we are!
- Capital Croissance has purchased Smart AdServer
- Magnite Spot X Zone
- Bought a Verve Smaato . group
- LiveRamp Datafleets has been purchased
- TransUnion has acquired Neustar
- Bought IAS Publica
- Publicis Groupe bought CitrusAd
- AppLovin bought a mopop
And the list goes on.
As for mergers, one of the recent deals worth noting in the online advertising market has been the SPAC mergers – which include Innovid and AdTheorent, to name a few – but again, this is only the tip of the huge iceberg of mergers and acquisitions, which is driving the acceleration of operations Mergers and acquisitions. Advertising technology company reviews.
Related: After 7 mergers and acquisitions in 7 years, I thought I’d seen it all. It then completed a remote merger and acquisition that warns of a global pandemic.
Why is the digital advertising technology market investing so fast
Despite the many theories and rumors circulating across the world’s online advertising community, there are only two main reasons why we’ve been tracking this fast market value over the past 12 months.
The first is the pandemic or, better to say, the rapid acceleration of the evolutionary processes it has sparked in the industry. While extreme digitization seemed somewhat inevitable even in 2016-2018, the shutdowns have made the new reality quicker than could be imagined. This fact is not going anywhere.
More importantly, optimistic economic forecasts for the fourth quarter of 2021 and early 2022, particularly in the US, EU, and Latin American and Caribbean countries, have made big-money players more eager to catch up with their investments in online ad technology companies.
The second reason is the stricter privacy laws and regulations around the world. When the industry seemed to have finally endured the introduction of the GDPR and CCPA, there was the soon-to-be-enforced Chinese LGPD, CPRA, PIPL and many more. Add it to the upcoming third-party cookie shutdown, and the future of effective audience targeting already looks bleak.
In this regard, the reduction in the number of accessible opportunities to obtain and legally use first-party audience data in online advertising is what led to an increase in purchases in this sector in 2021 (for example, the recent sale of MoPub from Twitter to AppLovin with over $1,000,000,000.).
What will 2021 M&A lead to in 2022?
Based on what we’re tracking now, market capitalization is unlikely to stop in the coming months. The dynamics will likely remain unchanged in the first quarter of the third quarter of 2022 and will be followed somewhat by a slowdown closer to 2023, having reached a plateau.
As companies put the purchased technologies into practice, we expect new ad technology solutions to flourish in Q2-Q4 of 2022 and 2023, mostly focused on predictive modeling features, aimed at more efficient attribution, inventory mapping automation, bidding and purchasing. And definitely immersive ads.
Most importantly, despite the expected evolutionary progress in the global online advertising industry, the market capitalization will not leave smaller companies a far behind in this “competitive race”.
The logic is clear: the range of advertising technology solutions they offer are usually affordable, more flexible (i.e. easier to customize) and still essential to the market’s small and medium-sized businesses.