$14 billion in global ad spend rumbling through the mobile adtech ecosystem has undergone a striking transformation over the past 12 months, redefining how agencies (and agency trading desks), vendors and audience platforms engage with digital budgets, impressions and apportion subsequent profit splits.
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AdTech volatility resonating across the vendor marketplace is pressed by the push to acquire scale quickly (i.e. M & A) to compete with display giants that own audience networks like Facebook, Google, Twitter and iAd, according to this report.
The report, Mobile AdTech 2015 – 2017: Staying Relevant and Getting Paid in an Era of Accelerated Volatility, cuts through the inventory, ad spend, business model, format pricing, sellout rate, vendor alignment chatter to present a transparent, detailed, data-driven, top down analysis of market mechanics, where the money comes from, how it flows through the ecosystem and economic rents paid to participants.
SaaS adtech business models benefit as agencies and publishers license mobile adtech solutions consolidating creative, marketing/social, cross-platform campaign management, clearing, execution and in-house sales onto one unified platform, while the ecosystem at large trains its programmatic technology sights on enabling affiliate networks, supply (SSPs) and/or demand (DSPs) sides of the business.
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In addition, format standardization is paving the way forward, toward programmatic trading efficiencies billed against CPM-based buying, augmented by video inventory internationally (particularly YouTube in AsiaPac) enjoying an increase in demand.
Total ad spend is forecast to increase 37% in 2015, with Facebook and Twitter alone poised to channel in an estimated 63%.
Agencies booked some $2 billion in 2014 fees, while adtech vendors (public and private) netted out $10.5 billion (including Facebook and Twitter).
The business challenge for all mobile adtech vendors today is reaching and qualifying audiences on every screen that doesn’t add complexity to workflow processes, and for the ecosystem at large to profit from doing so.