The crowded advertising technology space may be about to shake out some losers, reports Reuters.
Experts say there are more than 150 companies in the relatively new online advertising industry and that’s too many, especially since some of them have more money invested in them than revenue potential. And the likely buyers are distracted by with their own issues.
For instance, AOL and Yahoo both might be buyers of online advertising start-ups, but are in the midst of turnaround efforts and are vulnerable to takeover. At the same time, Google and eBay have already placed their bets on a few companies in the sector, such as Admeld and GSI Commerce, respectively.
According to Ian Sigalow, a partner at venture capital firm Greycroft Partners, ad tech companies focused on the demand-side of the equation–selling directly to agencies and marketers–have a much better chance of flourishing. “At the end of the day, only a few platform companies will exist,” said Sigalow.
Read more at Reuters.