Since uncooperative conditions (rain, thunderstorms) in Playa Del Carmen, Mexico have killed my golf game, I may as well throw up another blog post….
Story released yesterday: Mediamath Acquires Adroit, Combines DSP with Dynamic Ads
Analysis: At first blush, this deal makes sense. I haven’t seen performance data for MM, but assume their optimization algorithms are up to snuff, and will dovetail nicely with the dynamic creative and self-service UI chops of Adroit.
As with the Adobe/Omniture move into Level 2, the question will now be – can they execute?
Zooming up a level, the pace of consolidation seems to be accelerating. In this case, Level 1 (media optimizer) acquires Level 2 (creative optimizer). However, if you look at each of the three levels of media optimization, there are multiple recent examples of consolidation/integration:
1. X+1 venturing into landing pages (level 1 to level 3)
2. Adobe/Omniture announcing creative optimization (level 3 to level 2)
3. MediaMath purchasing Adroit (level 1 to level 2)
4. Adchemy (building levels 1, 2, and 3 from scratch)
5. Aggregate Knowledge (building levels 1, 2, and 3 from scratch)
6. Dapper (building levels 1 and 2 from scratch)
7. Choicestream / MyBuys / other recommendation engines moving into advertising/creative (level 3 to level 2)
8. … and more that are only rumors and/or under NDA at this point
There’s an interesting dynamic (no pun intended) evident in the quotes by CEO Zawadzki. On one hand, he stumps for the simplicity of a unified solution:
“Even agencies that recognize the value […] are deterred by the complexity of navigating multiple technologies and making sense of the results. The combined Mediamath and Adroit systems could remove some of those obstacles, said Zawadzki.”
Yet in the same article he leaves the door open for working with other (now competing) creative technologies:
“‘We will and do continue to support other dynamic creative solutions,’ like Tumri and Teracent, stressed Zawadzki.”
The reason why such seeming double-talk is necessary is because it has not yet become clear whether integration via partnership or consolidation/unification via acquisition (or internal build) will become the dominant trend among the various participants in the display optimization landscape. Consolidation yields simplicity and likely, in my humble opinion, better performance. Integration allows flexibility of partner choice – enabling the mixing and matching of participants from each of the individual optimization tiers.
My bet, and apparently the bet of companies like MediaMath and others mentioned above, is that simplicity and performance will eventually carry the day over flexibility. It will be interesting to see how this plays out.
Ok, enough ad tech talk – back to vacation!
(PS – on a more personal note, congratulations to Dan Faga and Vivianna Padilla on their impending nuptials!)