Adtech's Dance of Domination: 

The Consolidation Tango

I've been told by many in the know, especially on twitter (or X), that in the vibrant world of adtech, a grand tango is unfolding – a mesmerizing dance of consolidation that promises to reshape the industry landscape. As the curtains rise on this transformative performance, some companies find themselves moving seamlessly in harmony, while others risk being left flat-footed, teetering on the edge of an impending implosion.

The consolidation phase has already gripped the major hubs of technology on both the buy side and the sell side. Demand-side platforms (DSPs) have confidently taken center stage, navigating through the complex dance moves with seasoned grace. Meanwhile, on the sell side, a gradual awakening to the rhythm is evident, as companies explore their steps and strive to find their footing.

But don't be deceived by the elegance of this dance. Beneath the surface, the ground is shifting, and the stage is set for an implosion that may wipe out those unprepared for the tumultuous tango. 

The signs are all around us – news of companies closing shop or vanishing without a trace – a warning bell that echoes like a haunting melody. In truth, this implosion is long overdue, a necessary cleansing of the adtech landscape, clearing the path for a more refined and sustainable future.

The ad tech industry is putting on a show, and it's a dance of consolidation and fiscal responsibility. As the CEOs take to the dance floor, they are no longer risk-averse wallflowers; instead, they are partnering up and embracing alliances, twirling gracefully in a tango of technological collaboration. 💬 "Several years ago, ad tech companies preferred to dance solo and build their own tech. But now, we're seeing a change of heart, and they want to tango with others, partnering and licensing tech for cost-effectiveness, flexibility, and greater capability," said Sean Buckley, the chief revenue officer at Magnite over at Digiday. 💬 The audience is in awe as this elegant duo maneuvers, displaying poise and precision in each step of their dance of consolidation.

However, even amidst the grand spectacle, a cautionary tone fills the air. The recent tragedies of EMX's fall and the struggles of Yahoo and MediaMath serve as poignant reminders of the industry's vulnerability. The dance floor of ad tech can be a treacherous place, and the performers must navigate carefully to avoid missteps that could lead to disaster. The partners must heed the lessons of the past and ensure that their dance of consolidation is not just a fleeting fancy but a well-rehearsed routine that stands the test of time

The buy side's firm grasp on the dance partner selection is shifting the dynamics of the industry. Buyers are no longer content to sit idly by, entrusting their ad spend to anyone with a beat. They've become connoisseurs of the dance, handpicking technology partners with precision and scrutinizing every move their dollars make from beginning to end.

In this swirling dance of consolidation, buyers are gracefully forging deeper relationships with a select group of technology companies on the supply side. They have found their ideal dance partners, and they intend to hold them close, shunning the allure of multiple partners for the allure of consistency and reliability.

As the dance continues, the question arises: Are there still opportunities for new entrants? The answer lies in the subtleties of the performance. While the startup community inside adtech remains vibrant, it's essential to recognize that certain aspects of the dance have already been perfected. New entrants must bring novel twists and innovative moves to find their place on this crowded dance floor.

Enter stage right: Sustainability. It emerges as a key theme, an essential choreography in this ever-evolving dance. In the midst of the consolidation, companies must consider their carbon footprint, avoiding reckless steps that lead to duplication and unnecessary waste. The streaming business has managed to keep its partner count in check due to its scarcity of inventory, while other formats face the harsh spotlight of unsustainability. It's time to dance towards a greener and more efficient rhythm.

However, not all dancers are moving in harmony. Disintermediation, a daring spin in the adtech dance, introduces an element of uncertainty. Companies are building their own technologies, attempting to master both sides of the tango. While this can lead to breathtaking performances, it's vital to remember that each dance partner is unique. Careful choreography and thoughtful moves are necessary to ensure the steps align.

Amidst this intricate performance, artificial intelligence (AI) swirls like a mysterious dance partner, captivating and transforming the dance floor. With AI taking on tasks from shaping traffic to forecasting, it is the heart and soul of the evolving dance. But the beauty of this AI-powered performance lies in the endless possibilities that await – both on and off the stage.

As the audience, we must take in the grand spectacle with awe and anticipation. This is not the final act, nor the closing curtain. Innovation lurks backstage, waiting for its grand entrance. As the tempo quickens and the dance intensifies, audience enablement programmatically traded traditional television, and other innovative surprises are poised to steal the show.

So, here we stand, witnessing the adtech tango in all its glory. Consolidation, sustainability, and innovation combine, creating a performance of profound proportions. It's a dance of transformation, a dance of adaptation, and a dance of survival. As we revel in this breathtaking spectacle, let's remember that the implosion looms, and the adtech industry is poised for an unforgettable encore. Companies must prepare their moves, learn the choreography, and embrace the tango's rhythm to avoid being swept away by the impending storm. 

The adtech tango – where the dance continues, and the industry's future awaits its next breathtaking move!
 

Pesach Lattin
Editor-in-Chief, ADOTAT

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