Industry Shifts: Lessons from MediaMath and Oracle’s Departures
Over the past twelve months, the digital advertising industry has faced significant disruptions. First, MediaMath announced its closure in July 2023, and recently, Oracle revealed plans to shut down its advertising business. While these developments highlight the volatile nature of our industry, they also further underscore the importance for advertisers to make strategic and diverse investments in partnerships, media, and technology.
The old adage, “Don’t put all your eggs in one basket,” resounds in digital advertising today. When companies rely too heavily on a single platform, channel, or technology, they expose themselves to significant risks. This reality was highlighted in 2015 when Facebook drastically altered its algorithm. This change significantly reduced the organic reach of brand pages, forcing businesses to rethink their strategies and invest more in paid advertising to maintain visibility. Companies that had diversified media investments were better equipped to adapt and continue their operations smoothly, while those heavily reliant on Facebook struggled to cope with the sudden change.
Fast forward to today, and the lessons from 2015 remain relevant. The announcements from both MediaMath and Oracle underscore the necessity for advertisers to diversify their media investments. By spreading investments across multiple platforms and technologies, businesses can mitigate risks and ensure stability even when significant players exit the market. This diversified approach not only protects against sudden disruptions but also allows for greater flexibility and adaptability in an ever-changing industry.
3 Essential Strategies for Advertisers Amid Industry Shifts
To navigate turbulent times and safeguard your advertising strategy, consider the following key strategies:
- Prioritize Access to a Robust Tech Stack: Ensure your technology stack is comprehensive and diverse, providing the flexibility to adapt to changes and leverage new opportunities.
- Establish Partnerships with Diverse Vendors: Work with vendors who offer solutions across the entire advertising ecosystem, ensuring you have access to a wide range of tools and technologies to meet various needs and challenges.
- Avoid Sole Investments in One Channel: Diversify your media investments to mitigate risks and maintain flexibility, enabling you to pivot strategies quickly in response to industry shifts and disruptions.
These strategies are essential not only during industry changes but also for maintaining a resilient and effective advertising approach at all times. By implementing these principles, you’ll enhance your advertising resilience and effectiveness, ensuring strong campaigns regardless of the industry landscape.
The Impact on Digilant’s Day-to-Day Operations
Both MediaMath and Oracle were valuable partners to Digilant for many years, and the news of their closures was unfortunate. However, Digilant takes strategic measures to ensure industry shifts like these have minimal to no impact on our day-to-day, especially on our clients.
Digilant collaborates with several technology providers, data sources, and platforms to ensure our clients always have access to diverse, premium solutions. By curating offerings that leverage several partners, we remain flexible and can adapt to industry changes, ensuring our clients’ campaigns continue without interruption.