Apart from the pandemic, the ad tech industry experienced exponential growth owing to many macroeconomic factors beyond its control.
With The Trade Desk’s shares going up by 200% for the year at the end of 2020, it is evident that the ad industry has made significant gains during the crisis. A significant number of ads were bought online via ad tech to capitalise on existing bright spots like CTV, commerce and audio.
The stay-at-home economy has given ad tech vendors the reasons to be optimistic about 2021. But, with more people travelling and socialising in public, the overall ad tech sector might not benefit even though many of them will sustain gains.
With third-party cookies phasing out next year, ad tech’s position could become volatile. Abeed Janmohamed of Waypoint Partners and VOGL said, “There are positive signs for companies on the stock market, but the consolidation is still there”.
[5 minute read]