Why Digital Advertising Technology Is Driving Mergers And Acquisitions

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Advertising technology was undoubtedly one of the most thrilling areas last year for acquisitions and mergers. I have seen several influential acquisitions highlighting the noteworthy strategic worth of mobile advertising. So it got me thinking. What trends in digital marketing and advertising technology are motivating such investment decisions? Let’s find out....

The Boom Of Digital Advertising

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In the past 3 years, digital advertising has grown at 15 to 18 per cent per year worldwide. This growth has been considerably fueled by mobile and real-time bidding. With further advancements in technology, you will surely see the online advertising market gaining a larger share of the pie than expected earlier. 

Recently, Twitter acquired MoPub for $350 Million. What does that tell you? Well MoPub enables advertisers to focus on potential customers more precisely, in real time and in a bigger scale directly on their smartphones. Hence I don’t think it’s shocking that that Twitter has acquired the platform. Currently the core of advertising marketplace lies in real-time bidding for mobile and online inventory.

Real-Time Bidding- The Real Deal                                       

Real-time bidding is growing its market share at breakneck pace. Presently 19 per cent of the US online display inventory is being dealt in real-time. Moreover the rates in European are also growing rapidly. It is expected that by the year 2016, 25 per cent of ad impressions will be auctioned-off in a similar manner. These act as bids for programmatic ad buying platforms that helps to create more and more refined methods of optimizing and measuring the ROI of advertisers.

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I believe in the coming 5 years, real-time bidding will bring about radical changes and make the ad marketplace more effective. This will provide advertisers the capability to target audiences more efficiently based on certain criteria. Real-time data regarding your target audience, like age, gender, location, and others, merged with real-time pricing, can offer you a much clearer picture of the underlying market. The truth is such online advertising models will facilitate the transition of transition from offline to online providing a larger share of the pie.

It was found that in 2013 mobile marketing constituted almost 14 per cent of global digital ad spend, whereas in 2012 it was merely around 8.5 per cent. Moreover experts believe that by the year 2017, it will be around 33 per cent of the online ad market.

Marketing Automation- A Key Trend

Apart from mobile ad tech, marketing automation also plays a significant role in the Mergers and Acquisitions (M&A). As various sophisticated software is rapidly replacing human decision-making by running advanced data analytics and complex algorithms, marketing automation is gaining ground. Although you may think that email marketing has almost become obsolete, but it still acts one of the core strategies for a growing number of automated campaign management.

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Mergers and Acquisitions (M&A) are primarily focused on customer relationship management systems that utilize valuable social data about target audience to develop to provide successful marketing campaigns. A number of key acquisitions in the past 2 years have steered marketing automation to the front of the digital and online marketing revolution.

What do you think? Share your own views, opinions and experiences with us by commenting below.

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