- At the IAB leadership meeting Sunday, Terry Kawaja founder and CEO of Luma Partners—an influential investment firm—predicted that "Winter is coming" for ad tech.
- He explained that a bubble may be about to burst as there are approximately 2,000 venture backed ad tech firms—with only 150 poised for a liquidity event.
- Eventually, Kawaja predicts that all the ad tech firms will end up being picked up by 10 to 15 conglomerates like Yahoo, Facebook, and Google.
The digital world is no stranger to bursting bubbles, and all trends point to ad tech being the next one to pop. The Game of Thrones reference certainly helps put a visual on where the market is heading, which alludes to struggling firms pledging allegiance to several power players.
The picture Kawaja already makes sense: AOL has acquired five ad tech companies, Facebook and Yahoo are known to invest in ad tech, with acquisitions being a part of the plan, and Google almost has a monopoly on the programmatic ad buying process. So those already invested in the game should be looking for a real exit strategy, and make themselves attractive to potential acquirers.