When the ad market implodes: How an ad-marketing giant is reshaping its business model
Posted On July 21, 2021
In February, ad-tech giant AdAge said it would not be buying any new ad-targeting software, which would have allowed it to expand its business to more platforms, including social.
It had previously said that it was looking for a partner.
In August, AdAge told investors that it would buy rival digital marketing software AdCrowd and add its advertising platform to the mix.
This summer, it expanded its ad-spending platform, which includes ad-tracking software and an ad network.
And last month, the company added a new platform, AdDynamics, to expand the business of selling ad space on its platform.
AdAge is a $2 billion-a-year technology company that helps brands and advertisers target and sell ads to their audiences.
It has built its business around selling ad spots on television and radio and offering customized ad campaigns.
AdCustodian, a competitor to AdAge, was founded in 2015 by CEO Scott R. Stegman and is currently a privately held company.
AdDynamic has been growing at about 10% a year since its founding, according to analysts.
In the fourth quarter of this year, AdCurn, a company owned by Google, reported $2.3 billion in revenue, up 12% from the same period in 2017.
The company said its ad business grew 12% last year.
For the third quarter, AdRoll, a rival to AdAdvisor, reported revenue of $2 million.
AdRoll also said its business grew 17% to $2,821 million.
For 2018, AdAdvertiser, an ad platform that was bought by Google for $3.5 billion, had $4.4 billion in ad revenue, according the firm.
And in September, AdSpy, a social-advertising platform that is owned by a group of companies including Facebook, reported advertising revenue of nearly $3 billion, up 18% from last year and up more than 50% year-over-year.
For many advertisers, the future of ad sales is uncertain.
Earlier this month, Google said it was selling its social-media company, Vine, for $970 million.
That sale includes a 10% stake, and AdSpry’s stock price fell sharply.
The Google-owned company has seen a surge in advertisers opting out of its platform, as a result of a drop in organic views, which are the number of views a user sees on a website or app when they are scrolling through the site.
But the company has also seen a spike in views for its own brand.
In October, Google announced a $50 million investment to buy out the brand’s advertising agency, AdMedia, and create a new ad agency called AdStream, which was spun off from AdAge in 2016.
That deal also includes a deal to purchase more than $1 billion worth of ads through AdStream over the next two years.
AdStream has been building out its digital ad business, and it has been acquiring new services for its platform in order to grow its business.
The firm, which recently added a social network, will offer a range of ad formats, including direct-to-consumer, paid-advertising, sponsored content, paid media, and sponsored search.
While AdCord has been a big part of AdRoll’s growth, it is still growing at an average annual rate of about 6%, according to AdStream’s CEO, Kevin Lee.
“Our market is growing at a much slower rate than AdRoll,” Lee said.
“AdCord is growing more quickly than AdAge’s, but we are still growing faster than AdSpay.”