{"id":7028,"date":"2024-07-16T01:36:35","date_gmt":"2024-07-16T05:36:35","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2024\/07\/16\/how-consolidation-can-help-safeguard-the-future-of-the-open-web\/"},"modified":"2024-07-08T10:38:41","modified_gmt":"2024-07-08T14:38:41","slug":"how-consolidation-can-help-safeguard-the-future-of-the-open-web","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/how-consolidation-can-help-safeguard-the-future-of-the-open-web\/7028\/","title":{"rendered":"How Consolidation can Help Safeguard the Future of the Open Web"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Peter Wallace, General Manager, EMEA at <\/em><a href=\"https:\/\/gumgum.com\/?utm_term=gumgum&#038;utm_campaign=Branded+EMEA&#038;utm_source=adwords&#038;utm_medium=ppc&#038;hsa_acc=8097899233&#038;hsa_cam=16698074562&#038;hsa_grp=134236939119&#038;hsa_ad=590083928153&#038;hsa_src=g&#038;hsa_tgt=kwd-304921599772&#038;hsa_kw=gumgum&#038;hsa_mt=p&#038;hsa_net=adwords&#038;hsa_ver=3&#038;gad_source=1&#038;gclid=CjwKCAjwnK60BhA9EiwAmpHZw4K6cxhgQ3x8fITQkQmUZE122TVZs2ggmKzolsI5jTapcQHNyJwMwBoChPgQAvD_BwE\"><em>GumGum<\/em><\/a><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The long-awaiting thaw in adtech M&#038;A activity has finally arrived if Cannes Lions last month was anything to go by. The annual festival coincided with a string of M&#038;A deals between independent ad players. Equativ and Sharethrough, for example, <a href=\"https:\/\/equativ.com\/blog\/press-release\/equativ-and-sharethrough-merge\/\">announced a merger<\/a> and pledged to become \u201cone of the largest global independent ad platforms\u201d.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, <a href=\"https:\/\/www.madhive.com\/pressroom\/article\/madhive-acquires-frequence-to-bring-full-service-omnichannel-capabilities\">Madhive acquired Frequence<\/a>, to combine CTV adtech with the latter\u2019s omnichannel reach. Other mergers announced at Cannes include a $185 million agreement between mobile ad businesses <a href=\"https:\/\/jungroup.com\/insights\/verve-has-entered-an-agreement-to-acquire-jun-group-for-approximately-185-million-joining-forces-to-make-media-better-for-everyone\">Verve and Jun Group<\/a>.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Some may view this activity as a welcome return of investment after a tough economic cycle. But I\u2019d argue there\u2019s something more profound at play. Cannes Lions was also a reminder of the immense influence of the tech giants in our industry. In the face of this competition, consolidation has become essential for safeguarding the future of independent adtech and for protecting the Open Web.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenging the monopoly<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">The likes of Google, Meta, Amazon and TikTok are dominating vast swathes of <a href=\"https:\/\/www.emarketer.com\/chart\/266747\/amazon-closing-on-meta-duopoly-fades-triopoly-solidifies-of-us-digital-ad-spending-among-select-companies-2021-2026\">US ad spend<\/a> and despite various legal woes (e.g. over <a href=\"https:\/\/www.reuters.com\/technology\/google-loses-bid-end-us-antitrust-case-over-digital-advertising-2024-06-14\/\">antitrust<\/a> and <a href=\"https:\/\/www.bbc.co.uk\/news\/technology-53476117\">data security<\/a> issues), their power is only becoming stronger.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">But the domination of the walled gardens is far from inevitable if independent players in our ecosystem can learn to work together to pool their strengths. This idea is what\u2019s behind a growing influx of consolidation in our sector &#8211; writ large at Cannes via blockbuster M&#038;As and strategic partnerships.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Vendors are increasingly drawn by the opportunity to work with complimentary solutions that can provide access to tactical technologies, particularly in the cookieless arena. AI-led contextual targeting is a prime example, a technology which is considered by many to be the natural successor to behavioural advertising, and which has been largely pioneered by independent players in the industry.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">But while innovation has never been a problem for independent vendors, scale has, and that\u2019s arguably the most important benefit that consolidation could unlock. By working together rather than against one another, adtechs can achieve a scale that they never could alone, allowing the very best technologies to rise up and take on the tech platforms at an equal level.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A return to consumer centricity<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">The other great strength that I believe will be bolstered by consolidation is independent adtech\u2019s stronger inclination towards user-centric thinking. I believe the walled gardens are primarily driven towards beating each other and much less concerned with the consumer experience. The attempts of the tech giants to develop post-cookie targeting solutions that lock advertisers and consumers into their own ecosystems has exposed this ulterior motive.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Digital advertising is also just one cog within a much bigger machine for the walled gardens. Because of that, the need to create solutions that both respect consumers and benefit advertisers is far less of a priority than it is for independent vendors, for whom it is mission critical.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s why the best privacy-first solutions and technologies will continue to emerge outside of the walled gardens, driven by the most innovative independent companies. Greater consolidation will mean these players can combine their strengths to ensure consumer-centricity is baked into digital advertising at every level.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>An equitable future<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">The battle for an open, fair internet \u2013 one that\u2019s led by privacy-first technology, editorial excellence and world-class standards of transparency \u2013 can only be won with a thriving independent adtech sector.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Rather than fighting each other while the walled gardens continue to gobble up our industry, we must look for every opportunity to collaborate and drive privacy-first approaches that fuel the open web and maintain power with the consumer. It\u2019s clear that consolidation will be a powerful catalyst for making this happen.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">With Cannes Lions setting the tone, expect to see plenty more M&#038;A movement over the next 12 months, as we push to level the playing field and challenge those that threaten an equitable future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The battle for an open, fair internet \u2013 one that\u2019s led by privacy-first technology, editorial excellence and world-class standards of transparency \u2013 can only be won with a thriving independent adtech sector.<\/p>\n","protected":false},"author":7,"featured_media":7029,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[6],"topics":[2],"class_list":["post-7028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-tech","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How Consolidation can Help Safeguard the Future of the Open Web | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advertisingweek.com\/aw360\/news\/how-consolidation-can-help-safeguard-the-future-of-the-open-web\/7028\/\" \/>\n<meta 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