Adtech – Comcast’s Strata continues partnership spree with big names you know, and some you may not
Advertising technology – adtech to those in the know – describes the industry of, well, advertising technologies. These are companies that range from those developing new ways in which we consume ads; those that change how ads target consumers; and, of course, the rather large industry of business-to-business (b2b) innovation.
Though the average person’s knowledge of the adtech space may be limited, it’s worth noting just how large the industry is. As of 2015, it was a roughly $30 billion industry, with expectations that growth could continue rapidly. The changes in these projections are covered closely, as any downturns in hiring result in projections that the expansion is ending. Perhaps a good indicator of a burgeoning sector is the push-and-pull of calls of a bubble that’s soon to pop, and reports of increasing growth momentum.
The flip side is the always-ready counterpoint to show continued growth. As we reported in December, though, if staff size and hiring numbers are meant to be the benchmark for growth, as they are sometimes used as the benchmark for stagnation, the future in 2017 appears bright. But what’s actually going on in this space?
To start, look at two of the biggest players in the space: Strata and MediaOcean, two platforms that offer advertising inventory – space for ads – in one place for advertisers. Together, they process over $150 billion in advertising dollars every year. Their dominance in the space is a result of their access to advertising inventory, and strategic partnerships with a new wave of advertising technology firms that are allowing advertisers to maximize the efficiency of their ads.
You may have noticed over the past few years that ads are increasingly showing you products that may appeal to you, and less ads for products you’d never dream of buying. As advertisers and marketers get a better sense of who is consuming which content, they’re targeting their ads to specific groups. Part of the AdTech boom is in helping identify ad inventory to properly tailor campaigns towards specific demographics.
Just take a look at some recent partnerships to see how quickly this is growing. Strata, for example, recently partnered on the content consumption side with Pandora and Hulu, two names most of us are probably very familiar with.
The flip side of the coin is seen in the seemingly endless partnerships with less well-known names that are offering improvements for ad campaigns. Strata partnered with AerServ, to offer better ways to access mobile users; with Choozle to simplify digital ad campaigns; with YuMe to extend the reach of targeted, local campaigns; and countless others. Across all partnerships, agencies and content sites, Strata works with well over 1,000 companies.
So while you may not know of all these tech company partnerships, keep in mind that the next time you see an ad for something that no one in your demographic would consider, it’s almost certainly been a long time since those were commonplace. The rapid growth here is happening faster than many expected, and at least appears resistant to the calls of a bubble or speed bump.