RE:RE:RE:RE:Historical volatility I'm not sure if anyone here atually knows anything substantial about the ad tech space.
First, the biggest fish is TTD and they have it all. Why people here think that AT has something that TTD doesn't is beyond me. AT has illumin and TTD has Solimar plus enterprise integration andmich more that AT does not have.
Second, the big fish, TTD, mostly sells through a very small number of ad agencies who have exactly ZERO incentive to switch elsewhere. This is most of the Tier 1 market.
Third, there are some Tier 1s that will have their own internal desk but it is also really hard to get them to switch because unless AT/illumin can show substantially better results the cost of switching is high. New relationship, new system/training, internal friction, and risk of the unknown make it an uphill battle if the incumbent is decent. Displacement is really hard.
Fourth, that leaves the Tier 2 and below market which is wide open. Here there is lots of competition from public and private ad tech firms which are plentiful. Cost of customer acquisition is higher here because you are fighting for a much smaller revenue base.
So what was AT selling investors / hoping for? That they can somehow convince an agency to switch from TTD (good luck) and/or that the industry will shift from an agency model to in-house and they can pick some up along the way.
That is a very tough and long road and you can bet competition will be very tough. Hence, AT iis left fighting for the smaller potatoes in the mid-tier and below market.
Capharnaum wrote: 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
Wouldn't larger firms that have their own trading desk want to include AT's tech in their tools?