Why Ad Tech Consolidation Is Good for CIOs

On the Internet, everyone needs ads. They are the lifeblood of the web, funding websites and web-based companies that would never be able to flourish otherwise. In an article for, Matt Kapko explains why the presence of too many competing ad tech companies signals the coming era of mergers and acquisitions for this rampant form of enterprise. For CIOs, this is a good thing.

Nothin’ but Gut Instinct

Online ad companies, besides being too numerous, are trying to hit a moving target:

Complexity and uncertainty about ad tech are leading companies to make decisions — sometimes based on nothing more than gut instinct — that directly impact the CIO. Framing this challenge as an opportunity for the CIO is critical.

Welcome, Ad Suites, Welcome

Just because marketing departments keep getting bigger budgets doesn’t mean they know how to utilize ad tech. Berkowitz says that a healthy relationship with the company’s CIO is the best chance marketing has to use its slurry of ad tech. As more ad tech firms are cobbled together, CIOs will see the emergence of comprehensive ad suites, a welcome alternative to doing the cobbling themselves.

Facebook Eyes Mobile Ad Space

The industry is diversifying, as its target market expands from big name brands like Google and Microsoft to include social networking platforms and online publishers. A recent example of this change is the success of Facebook in its quest to provide ad tech to clients. Facebook COO Sheryl Sandberg hints at the coming of “strategic investments” for the company, noting the need to access the popularity of mobile – something that many companies are not willing to do.

In fact, Chang says that ad tech is never fully deployed, since at each new release a new trend emerges that requires the building of new technology. Getting television ad dollars to migrate to mobile formats will be a challenge for ad tech companies, but a welcome trend for CIOs.

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