Technology Industry builds for and burns on Ads

The days of 'build it and they will come' are over for tech companies. Since the iconic '1984' Apple commercial and Microsoft's flashy Windows launches, the tech industry has been a major player in advertising. According to Madison and Wall, tech companies are now among the world's largest brand advertisers, spending a staggering $22 billion on digital ads last year alone.

That is just one side of the story.

Tech giants have also emerged as the largest publishers sidelining traditional media companies like newspapers, movies, and cable Televisions. In 2023, Google was the world's largest media company, generating an astounding $237.86 billion in advertising revenue. In Q2 2024, Google's revenue totaled $84.74 billion, of which $64.62 billion (or 76.3%) was from ads. Meanwhile, Amazon's ad revenue reached approximately $40 billion. Meta is not far behind.

That is not all. They also build all the tech that drives this segment.

An ad tech stack, also known as an advertising technology stack, is the collection of technologies, systems, platforms, and tools used to manage digital advertising campaigns. Advertisers leverage ad tech stacks to identify the most effective platforms and programming for their ad content, maximizing its impact while optimizing costs..

Ad tech is a critical aspect of this marketing value chain. Rather that is all that is there what with even creative is being heavily influenced by GenAI offerings.

The closest ecosystem to the ad industry's closed-loop system of innovation, building, and consumption is likely NASA and defense sector. However, unlike these sectors, the ad industry is far more democratic and consumer-driven. The ad industry thrives on a diverse range of participants and is heavily influenced by consumer needs and preferences, as it should be.

Jack Wagner ?? Aaron Goldman Garett Sloane Ramsey McGrory Martin Kihn Ricky Sutton Stephanie Layser Shaikh Subhan Thomas Been Daniel Murray The Marketing Millennials Digital Marketing