The mar-tech and ad-tech verticals are ripe for disruption
Current Solutions do not meet marketer's needs, nor do they satisfy consumers
Marketing and advertising technologies have developed in relative isolation. However, the demands of marketers, advertisers and investors are now driving convergence.
Investors are moving away from ad-tech. Overseas venture capital funding for ad-tech companies is decreasing, while interest remains strong in mar-tech businesses. The trend is less pronounced in Australia, but we believe the same underlying drivers apply
Marketers need a better solution. The market is too fragmented to deliver simple, trackable marketing solutions, or enable data integration. A lack of transparency also makes it difficult for marketers to measure success
Consumers need a better experience. Consumers expect engaging, relevant online experiences, including advertising. This requires better data integration than the current mar-tech / ad-tech distinction provides
These trends are driving Ad-tech and Mar-tech into each others’ arms, but convergence is not the end state. Ongoing trends like telco moves into ad-tech mean there is still room for disruption