Ad Tech Growth Hits Speed Bump

Growth in the advertising technology industry may be hitting a speed bump.Dozens of companies offering technology to automate ad sales or offer more sophisticated ad-targeting have come onto the market in recent years, contributing to an unwieldy digital advertising ecosystem. Venture funding for ad tech startups is harder to come by and many more established firms are feeling the pressure from investors to find an exit.According to an analysis of LinkedIn data by Pivotal Research analyst Brian Wieser, there was a noticeable slowdown in hiring at major ad tech firms in the fourth quarter. While some of the deceleration in employee growth may be due to the reorganization of a company’s business priorities or potentially due to a slowdown in business, Mr. Wieser said many ad tech firms are cognizant of conserving capital.“If winter is coming or has come so to speak in terms of the funding vacuum for venture funded companies, companies may have decided they can’t just expand for the sake of expanding,” Mr. Wieser said.Ad tech firms that have been around for years are now grappling with the reality that they haven’t achieved the rapid growth investors had hoped for and face the challenge of differentiating their technology in a competitive market. Many ad tech companies remain unprofitable as costs continue to mount and several ad tech firms recently announced sizeable job cuts.

Source: Ad Tech Growth Hits Speed Bump – WSJ

Be Sociable, Share!

Leave a Reply

Your email address will not be published. Required fields are marked *