And the advert tech firms that go public, may purchase extra advert tech firms, McKenna mentioned.
“The market is rewarding motion,” McKenna mentioned. When Magnite purchased SpotX and when Digital Turbine spent $1 billion buying Fyber, AdColony and Recognize, their respective shares jumped by greater than the worth of the particular deal, he mentioned.
Proper now, with markets so centered on development, it’s higher “to make errors of fee relatively than omission,” he mentioned.
The frenzy to CTV
“CTV has develop into a vital narrative for any firm that’s touching media, advertising or expertise,” McKenna mentioned.’
The TV area is sizzling: Vizio went public, Magnite purchased SpotX, LG acquired Alphonso for $125 million, Comcast’s Freewheel closed its buy of Beeswax and Roku acquired Nielsen’s video advert tech property.
The Nielsen-Roku deal held specific curiosity to McKenna, as a result of it signifies how an OTT participant might develop into data-driven linear adverts.
“Within the conventional TV ecosystem, the availability aspect is the scarce aspect of the market,” he mentioned. “Roku, one of many largest AVOD CTV gamers, is in search of extra provide past what they’re touching, and transferring into data-driven TV promoting.” This migration shall be sluggish – over the following decade – however the development towards convergent TV is in movement.
Identification disaster? Not in advert tech
When Google Chrome mentioned it will take away third-party cookies final 12 months, it injected loads of uncertainty into the market. The following pandemic didn’t assist issues, halting deal-making for greater than 90 days, McKenna mentioned.
However whereas few know precisely what advertising will seem like come 2022, that uncertainty isn’t having an enormous impact.
Although Q1 2021 could go unmatched when it comes to deal-making, there are nonetheless loads of conversations taking place at LUMA that point out extra firms will pair up or go public in 2021.
The brand new, billion-dollar massive fish can snap up smaller advert tech firms. For example, Magnite was in a position to buy SpotX after its inventory hit file highs. “There at the moment are very massive, viable patrons which can be deep within the ecosystem,” he mentioned, together with an inflow of customers consuming media and purchasing on-line – an ideal storm that’s persevering with unabated.