2021 has actually been a good year to be an advertisement tech investor. Valuations are rising, Wall Street is happyand exits are regular and satisfying. It’s the ideal time to double down and buy a location that has actually been mostly disregarded but is poised for significant upside in the next few years: Digital creative advertisement innovation.
Think about it. When was the last time we saw a significant ad tech financing round that was directed at the real ads themselves– the messages people really see daily? I ‘d argue that now is the best time.
The adtech start-ups that can figure out how to adjust ads that can engage with the remote control, a synced mobile phone or voice commands– perhaps even make them shoppable– can in theory produce a game-changer.
Here are five reasons VCs must think about ratcheting up their financial investment into advertisement tech start-ups building the next generation of innovative tools:
Creative tech is far from being filled
Think about just how much has actually been spent over the 15 years on digital advertising mechanics such as targeting, serving, measuring and verification. Not to mention the trillions that have gone toward assisting brands monitor client data and interactions– the marketing cdps, clouds and dmps.
You can count the number of creative-centric ad tech business on one hand. This suggests there is a lot of room for innovation and early leaders. VideoAmp, which assists brands make ads for various social platforms, pulled in $75 million earlier this year. Provided how fast platforms like TikTok and Snap are growing, it won’t be the last.
Digital ad targeting is being squeezed
Ads need to do more work today. In between policy, cookies disappearing and Apple locking down information collection, we’ve seen a restored interest in contextual marketing, including financing for the similarity GumGum, in addition to identity resolution firms like InfoSum.
But the digital ad ecosystem can’t manage just using wider data-crunching methods to change “retargeting.” The medium is practically crying out for an innovative revival that can just be stimulated by scalable tech. The recent financing for creative testing startup Marpipe is a start, but more focus is required on actual tech-driven ideation and automation.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.
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