Worries about fraud and fragmentation may prompt a shake-out in the crowded online-ad industry.
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More than 2,500 companies are involved in the supply of digital ads, according to Luma Partners, an investment bank.
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An ad impression sold programmatically can change hands 15 times before finally being bought by an advertiser, notes Peter Stabler, an analyst at Wells Fargo, a bank. “We have an immature supply chain that is constantly evolving,” says Randall Rothenberg of the Interactive Advertising Bureau (IAB), which represents media and ad-tech firms. That brings both innovation, he argues, and headaches.
An ad impression sold programmatically can change hands 15 times before finally being bought by an advertiser, notes Peter Stabler, an analyst at Wells Fargo, a bank. “We have an immature supply chain that is constantly evolving,” says Randall Rothenberg of the Interactive Advertising Bureau (IAB), which represents media and ad-tech firms. That brings both innovation, he argues, and headaches.
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Rob Norman, GroupM’s chief digital officer, expects advertisers to
continue shifting towards large platforms such as Google and Facebook,
and a select group of firms that agree to stricter standards on
viewability.
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A variety of larger companies such as Yahoo, Oracle and Salesforce
have bought up smaller firms, the better to offer themselves as one-stop
shops to advertisers.
The best positioned firms, however, are Google and Facebook. Terence
Kawaja, Luma’s founder, notes that the two companies have more than half
of the mobile-advertising market, a share he expects to rise. Thanks to
logins, each can track consumers from their computers to their phones
and back again.
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