Consolidation Predicted for Ad Tech Sector in 2010

©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.

5/4/10, ClickZ

Describing the online display ad technology marketplace as “overcrowded,” an investment banker said vendor consolidation is inevitable.

Terence Kawaja, managing director at GCA Savvian Advisors, identified 192 companies in 24 categories, such as agency media-buying platforms (Havas’ adnetik, Publicis’ Vivaki, Razorfish’s Atom Systems, WPP’s B3), data exchanges (BlueKai, eXelate); publisher yield optimization tools (fatTail, YieldEx, YieldBuild), media verification tools (DoubleVerify, Mpire), plus ad networks, exchanges, and data aggregators. These companies, he said, have obtained $2.5 billion in capital over the past four years. Yet, “this channel has a lousy $8 billion spend,” he said, contrasting the annual amount spent on online display advertising compared to the much larger amount spent on TV advertising.

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