RE:RE:RE:Historical volatility
jcjohn36 wrote: A new CFO with no tech experience IMO is a negative for the company. Illumin is a product for tier 2 type companies, most large advertisers have their own trading desk and don't need Illumin's DSP.
My guess you will see a fair size acquisition like Magnite did last year - the industry is ripe for consolidation. This should also the SP.
JC
I disagree that Illumin is only for tier 2 type clients.
I will use Purple Mattress again as an example. They have built a strong in-house marketing team that's responsible for a lot of video content they put out there but they still hire a bunch of ad agencies to fill the gap. Acuityads would be one of them. A large advertising company does not have programmatic experience to effectively compete with the larger dsp players of the world. Just to put things into perspective, Acuityads spent over $100m to perfect their technology over the years and any large brand would have to do the same to effectively compete. You need a lot of money and a lot of time. In a nutshell, just because a large brand (advertiser) has an in-house marketing team does not mean that they have programmatic advertising experience. They may need to hire other ad agencies to fill the gap.
In the past, if a company had no marketing expertise they would simply hire an ad agency to run the campaigns for them. With Illumin, being a self serve platform, any company can run the campaigns themselves. This gives the company good bang for their buck as ad agencies could have a large mark-up on inventory ad slots.
Look for an acquisition to solidify their competitive advantage as they are likely to acquire a company with search engine marketing/social media expertise to give a more complete picture of the consumer journey in the digital world. Illumin would then become the ultimate dsp platform that no other company would have.