Oracle Advertising, once the swashbuckling hero of data-driven marketing, has taken a nosedive straight out of a Hollywood stunt film. CEO Safra Catz, channeling all the gravitas of a movie director announcing a box office flop, revealed during the company’s fiscal 2024 Q4 earnings call that their ad business had dwindled to a pitiful $300 million in revenue. Just two years ago, it
was basking in the glory of $2 billion. Talk about a plot twist.
Investors, however, seem to have missed the memo on this cinematic tragedy. Oracle’s stock has been riding high, thanks to blockbuster deals with Google Cloud, Microsoft Azure, and OpenAI. It’s like watching a movie star win an Oscar while their latest film tanks at the box office.
Oracle’s adventure into the advertising world began
over a decade ago when "data is the new oil" was the script everyone wanted to follow. Oracle, ever the star of the show, bought up firms like Vitrue, Eloqua, BlueKai, DataLogix, and Moat, aiming to build an advertising empire. But the script flipped dramatically in 2018. The Cambridge Analytica scandal and GDPR rewrote the rules, turning data-driven advertising into a cautionary tale.
Meta (then Facebook) decided third-party ad targeting was as outdated as silent
films, and privacy became the new blockbuster. Apple, Mozilla, and Google jumped on the bandwagon, enhancing privacy protections and making third-party data as welcome as a skunk at a red carpet event.
By 2019, Oracle began its slow retreat, starting with shutting down its AddThis audience data business in Europe. The next few years were a series of exits, culminating in last year's global shutdown of AddThis and a full retreat from third-party data targeting in
Europe. It was like watching the once-invincible hero get pummeled in the final act, one punch at a time.
Oracle’s decision to pull the plug on its ad division is set to trigger a mass exodus that would make the Israelites’ departure look like a casual stroll. Teams of data science experts are already waving goodbye on LinkedIn, hunting for new gigs faster than you can say "action!" With between 1,001 and 5,000 employees in
Oracle Advertising and about 164,000 company-wide, the impact will be as broad as Larry Ellison’s yacht collection.
Ad tech companies are circling like vultures over a fallen stuntman. Mario Diez of Peer39 and Adam Schenkel of GumGum have reported surges in clients adopting their solutions for contextual and brand suitability targeting. It’s like watching a free-for-all at a prop auction—everyone’s scrambling to grab what’s left.
Privacy concerns have been the thorn in Oracle’s side since 2018. The Cambridge Analytica scandal turned data partnerships toxic, and by 2020, Oracle had shut down AddThis and ceased offering third-party data targeting services in Europe due to GDPR. Throw in a class-action lawsuit for allegedly using third-party trackers without consent, and you’ve got a recipe for disaster.
Oracle’s decision to shut down rather than sell the ad business is a plot twist
worthy of *The Fall Guy*. The company explored offloading parts of its advertising empire but found no buyers. Moat and Grapeshot remained attractive assets, but they weren’t even put on the block. Oracle's CEO simply didn’t want the stain of selling their billion-dollar babies for pennies on the dollar. In their eyes, if you never acknowledge the loss, it’s like it never happened. It’s like a stuntman who never misses a mark—if you don’t take the fall, it doesn’t count.
With Oracle’s sudden exit from the advertising arena, the ad tech landscape has turned into a frantic gold rush. Companies like Integral Ad Science (IAS) and DoubleVerify are salivating at the prospect of swooping in and claiming Oracle’s displaced clientele. These firms, renowned for their prowess in ad verification and analytics, see this as a golden opportunity to expand their market share and cement their dominance. Nick Reid from DoubleVerify has
been particularly vocal about their readiness to provide uninterrupted measurement services, aiming to reassure advertisers and smooth the transition. It’s like a pack of wolves eyeing a wounded deer—everyone wants a piece, and they’re moving in for the kill.
But replacing Oracle’s entrenched services isn’t as simple as flipping a switch. Marketers now face the daunting task of identifying new partners who can seamlessly integrate with their existing systems. This
process involves a meticulous evaluation of potential vendors, rigorous testing of their platforms, and navigating the procurement labyrinth—all while the clock is ticking. The urgency is palpable, akin to trying to fix a plane while it’s flying—complex, nerve-wracking, and fraught with potential disaster. Every decision made in this high-pressure environment carries significant implications for ongoing campaigns and future strategies.
Adding to the chaos is the
looming specter of layoffs within Oracle’s advertising division. Many of the company’s ad execs, who possessed deep institutional knowledge and long-standing relationships with clients, are being shown the door. This mass exodus of talent not only disrupts continuity but also leaves a void in expertise that competitors must quickly fill. The laid-off employees, now scrambling for new opportunities, are like highly skilled stunt performers suddenly left without a show. Their departure further
complicates the transition for marketers who relied on their guidance and support.
The stakes couldn’t be higher. For IAS, DoubleVerify, and other ad tech firms, the challenge lies not just in capturing new business but in doing so without missing a beat. They must ensure that their solutions can meet or exceed the capabilities of Oracle’s offerings, all while providing the stability and reliability that advertisers crave. It’s a delicate balancing act, one that
requires precision, agility, and a bit of showmanship. In this high-stakes drama, success will be measured not just by the number of clients acquired but by the seamlessness of the transition and the ability to deliver on promises without faltering.
Oracle’s retreat marks a seismic shift in the ad tech world. The company’s inability to adapt to the post-GDPR era and its subsequent strategic withdrawal underscore the industry's
evolving challenges. As data privacy regulations tighten globally, the future of ad tech will hinge on more privacy-conscious solutions. Oracle’s downfall is a golden opportunity for others. Companies that can navigate the regulatory labyrinth and offer robust, compliant solutions will emerge as the new leaders. As the ad tech landscape evolves, one thing is clear: innovation and compliance are the new currency in a data-driven world.
