The Marketer's Case Vs Ad Tech Complexity
Margiloff, who spoke at Digiday’s Data Marketing Summit in Deer Valley, Utah, believes that figure represents well more than these many vendors can ever hope to generate in sales. Put another way, more money has been invested than will even be generated in sales -- forget profits.
“The math doesn’t add up,” he said. “It just doesn’t make sense to have all these companies for a marketer.”
And that’s fine for venture capitalists making bets on intermediaries it hopes will be the next Admeld, which Google bought for $400 million. But beyond the top three in these areas, the future is rather bleaker, with consolidation at meager valuations and some outright failures.
The real victims here, as Margiloff sees it, are advertisers and agencies, which are confronted with an overly complex landscape that purports to make online advertising more efficient but often makes it rather more difficult.
“The money being thrown around is creating a lot of chaos,” he said. “It leaves one group the short end of the stick, the marketer.”
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