Elgin Thompson, managing director of technology investment banking at JMP Securities, said those types of deals are likely to accelerate in 2020. Unlike Google's dominance in display and search advertising, adtech companies see an opportunity to jump ahead of Google in building out the infrastructure and relationships with marketers for OTT.
"Google doesn't dominate television — everyone who was text-based in the past year now wants to be in the OTT space" he said.The glut of new streaming services is a mix of subscription and advertising-based models. Two of this year's most prominent streaming launches are ad-free: Disney+ and Apple TV Plus.and WarnerMedia's HBO Max that are planned to roll out next year and in 2021 will include some ads.
For that reason, ad-supported services like Pluto TV, Tubi TV and Xumo are building up their own adtech stacks and funneling some of the spend from TV to OTT. With Viacom buying Pluto TV this year, Thompson said Tubi TV could get acquired next year because it has an advertising model that takes direct aim at Netflix, he said.
"To the extent that they can't build their own [tech stacks] they will look to acquire best of breed," he said. " The challenge is these technologies are still new."Comscore and Nielsen have long been the ad industry's primary way to measure TV advertising and both companies are shifting towards measuring connected TV advertising.
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