Why non-internet companies are buying into adtech

In Q1 2016 alone there were 72 merger and acquisition events among advertising technology, marketing technology and digital media firms.

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 SingTel, which is the largest telecom company in Singapore, is another example of a major telecom provider jumping on the adtech trend. Kontera, Adconion and Amobee, companies that SingTel purchased, each help SingTel better exploit their vast collection of consumer data, enabling potential advertisers to more easily reach their target audiences and deliver relevant messages, deals and promotions.

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Facing a wireless market that is largely tapped out, and prevented by the FCC and DOJ from making mergers and acquisitions within the telecom space (see: the federal lawsuit against AT&T for its attempt to purchase T-Mobile USA), telecom providers are looking to find new ways to create revenue.

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Many large-scale brands see value in developing in-house programmatic capabilities and avoiding a reliance on external tech and media partners, losing more of their spend with each middleman. By controlling all aspects of the programmatic ecosystem themselves, they can guarantee a better use of their marketing budget, and more ownership over the data.

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Oracle has invested heavily in consumer data and advertising technology, with the BlueKai acquisition for $400 million and Datalogix for $1.2 billion in 2014, Maxymiser in 2015 and AddThis for $200 million in 2016.

By adding critical marketing data and capabilities into the Oracle Data Cloud and allowing them to better compete with other cloud advertising competitors like Adobe, these acquisitions bolster Oracle’s position as a data-as-a-service company.
https://techcrunch.com/2016/10/24/why-non-internet-companies-are-buying-into-adtech/