Adtech Startup Sector Explained

Startups in the AdTech (Advertising Technology) sector… 

Are often misunderstood OR completely overlooked by investors.

But it shouldn’t be that way.

I’m going to explain myself more shortly… as well as share some of the startups in the space I like…

But first, let me give you a little context.

You see, Chris Graebe, Jason Bond, and I were pitched by a startup that’s making waves in the AdTech world…specifically when it comes to influencer marketing.

They are the first fully automated influencer marketing solution that allows small businesses to drive brand/product discovery, distribute digital content, and track the results.

This process has always been tedious and time-consuming for businesses, so many stayed away from it or saw mediocre results. 

It’s now simple and backed by impactful data.

The exciting news is we’ve decided to bring this deal to our Boardroom members later this week and make a 5-figure investment

They will have the chance to invest alongside us and so will YOU –– so keep your eyes peeled for that opportunity later this week!

And to prepare yourself for this and future startup investments, make sure you download your FREE copy of my Startup Investor’s Playbook.

 

Advertisers Harness the Power of Influencers

 

The internet and social media have changed advertising forever (just like angel investing has). 

The old advertising playbook has been thrown out the window and marketers are rushing to write a new one. 

To deal with the complexity of modern digital marketing, a new industry has arisen — Adtech.

 

What is Adtech?

 

Advertising Technology, or Adtech, refers to a range of analytics and tools that brands and agencies use to improve advertising campaigns. 

These tools are used to direct advertising to individuals and specific target audiences. 

Adtech helps advertisers to make more effective use of their advertising budgets.

By optimizing ad campaigns, measuring ROI (return on investment), and gathering customer insights, digital marketing becomes highly cost-effective and powerful.

More specifically, Adtech brings together publishers and advertisers in a way that helps both sides get what they need.

 

The Publisher-Advertiser Relationship

 

Advertisers create ad campaigns directed at high-value audiences.

Publishers are the ones who show advertisements to the world. They can use a variety of media and platforms to get eyes on ads –– everything from websites to social media like Facebook, Instagram, and YouTube. 

In the context of modern digital marketing, publishers are often Influencers — more on that later.

So, Adtech helps advertisers to create more effective ads and publishers to show them to the right people. Simple — right?.

Well, it turns out that even with the tools and data available today, this is still a highly delicate and difficult science and new solutions are in high demand.

 

Difficulties in Digital Advertising

 

Back in the day, advertisers and publishers rarely knew how effective their ads were. 

A brand would put a TV commercial out there, and just sort of hope that it sells more products. There was very little feedback.

Today, advertisers can comb through vast amounts of data relating to the number of clicks, conversions, time spent watching, number of shares or embeds, etc. There is a wealth of info out there to help them see if the campaign is working or not.

As great as this is, it has just created more questions than answers. 

Having data and knowing what to do with data are two very different things. 

Even with the tools available today, digital marketing can still yield hazy results and insights.

There is no doubt that the industry demands more and better Adtech tools.

 

An Explosion of Publishers

 

Publishers on the internet aren’t bound by the same limitations as ones in the real world. 

For every one billboard, there are potentially thousands of message boards. 

Instead of one hundred channels on cable, there are millions of channels on youtube.

There is more real estate, so to speak. 

And the biggest breakthrough was the discovery of a new type of publisher — the Influencer

With the rise of social media, advertisers have found the incredible opportunity of using super-popular profiles as a top-notch advertising space.

 

What is an Influencer?

 

An influencer is someone who has the power to sway customer buying decisions through their authority, popularity, expertise, or relationship with their audience.

In the new world of digital marketing, these gurus, bloggers, YouTubers, and online experts can provide marketing potential far more valuable than primetime TV spots.

And influencers aren’t just marketing tools, they are “social relationship assets” that brands love to collaborate with to meet marketing objectives. 

Being either experts or celebrities, consumers have no problem basing buying decisions on influencer endorsement. 

Even better, being real humans that you can connect with, influencer advertisements can be far more effective and authentic than the efforts of large, faceless corporations.

 

Difficulties in Influencer Marketing

 

Despite the incredible potential here, the effectiveness of influencer marketing has been called into question. 

Studies show that a whopping 75% of brands practice some form of influencer marketing, but only 36% think these efforts are effective. 

This is due to a lack of technology to track influencer campaigns and conversions — a lack of Adtech.

The main issue is there are too many influencers across on too many platforms. This is a puzzle with too many pieces. Traditional advertising can’t keep up. 

There is an incredible amount of opportunity here, but the industry doesn’t yet have the tools to take advantage of it. 

The solution? 

Promising Adtech startups that are optimizing ad campaigns and finding new ways of engaging customers through innovative SaaS solutions.

 

Adtech Startups

 

Here are some of the most interesting and fastest-growing startups in Adtech today.

Learn how to invest in startups like these and get some of my favorite angel investing tips and tricks in my NEW angel investing guide.

 

CloudCherry

CloudCherry says it is an “Experience Management” platform that is “disrupting the way organizations listen to the voice of the customer.”

With a customizable and intuitive solution, businesses can self-serve their way to a better understanding of their customer’s journey.

Right out of the box, CloudCherry integrates with existing business applications. 

The goal of this product is to offer predictive insights to understand consumer needs.

Investors have taken interest in CloudCherry, investing $16 million into early-stage funding.

 

Hootsuite

Hootsuite is a young company, but it is already one of the most widely used platforms for managing social media.

Hootsuite manages its clients’ social media programs across all social networks from a single dashboard.

Their clients include over 800 of Fortune 1000 companies.

This platform makes it easy to monitor key advertising topics, analyze your social media performance, create and manage advertising campaigns, and monitor and manage incoming messages.

Hootsuite has already raised nearly $300 million in funding.

 

MediaMath

MediaMath helps advertisers manage data to create better marketing content. 

This platform helps to activate data, automate the execution of digital marketing, and maximize interactions across channels. 

MediaMath’s technology allows marketers to make decisions in real-time to better reach their marketing goals. This is all accomplished through advanced machine-learning AI.

To date, investors have supplied around $607.5 million in funding to MediaMath.

 

SEMrush

This Adtech platform ensures businesses get measurable results from online marketing. 

SEMrush offers insights and solutions for companies in any industry. Clients can build, manage, and measure campaigns across their marketing channels. 

This tool is used by more than 5 million marketing professionals to get measurable results from online marketing. 

So far, SEMrush has earned $40 million of early-stage funding.

 

Opportunity for Angel Investors

 

Whenever there is a field so in-demand and yet so underdeveloped, I instantly start looking for startups in that space.

The market is hungry for intelligent solutions to take digital marketing to the next level. 

Meanwhile, advertisers are struggling to keep up with the huge number of publishers and influencers with valuable audiences. Without advanced systems to interpret data, these publishers will go untapped, essentially wasting billions in marketing potential.

Believe me, brands are desperately searching for startups that can provide solutions to these problems. 

Now is the time to invest in the most innovative Adtech startups that will push digital marketing to its full potential. 

Learn the how, when, and why of investing in early-stage companies with my FREE Startup Investor’s Playbook.


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