Sign up to receive 5 free days of our daily summary for tech news.

Better Business Models Shift Mood on Ad Tech

Ad tech has had a rough year, with a range of public stocks getting hammered. But the emergence of more efficient business models now appears to be helping some companies stand out, creating a split in the market.

Companies that have long competed for individual contracts to help advertisers with campaigns, like Millennial Media, Tremor, YuMe and Rocket Fuel, are struggling in part because of the high costs of managing the sales process. These companies, which went public in a wave starting in 2012, used the old school business model of trying to buy ad inventory cheaply and sell it to advertisers at a higher price. Some are now trying to push more into self-service and automated tools for buying ads.

No subscription? You're missing out.

Join the high-powered community of tech and business leaders who rely on The Information's original news and in-depth reporting.

A previous version of this article incorrectly said TellApart would generate a net revenue of $100 million this year.

Linda Holliday commented on this article.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
Google is finding the transition to mobile advertising to be a challenge, reinforcing the view that the big firms can’t grab the entire market.