Google and Facebook are major players when it comes to the Internet and online advertising. The very idea of attempting to fight back against their dominant positions does come across as being rather zany and impossible.
But then, what are your options? You don’t want to attempt to take them on in a head-to-head battle as that is pointless. What this then means is that there’s a need to identify other areas or opportunities to explore. If you can do that, then you may strike it lucky.
You may ask yourself why bother fighting for the scraps? Well, the fact that the digital advertising market is closing in on being worth a staggering $100 billion a year is a good enough reason.
The Difficulty For Ad Tech Entrepreneurs
If you look at the stats, then it fails to paint a nice picture for ad tech entrepreneurs. Not only have sales dropped along with the number of companies in this area, but investment has fallen as well.
In fact, according to Crunchbase there was a drop in investment of some 80% within this industry.
But then, if things are so bad then why even bother battling away to succeed in this industry? Well, it’s all coming down to the way in which they tackle the industry.
Finding That Special Niche
As I said earlier, ad tech companies have to look at ways to avoid the main markets dominated by the big two. Due to improvements in technology, this is becoming easier than ever before.
By offering a more specialized service than Google and Facebook, it means that ad tech companies can offer real value to their clients. They can become the people that others turn to for those different forms of advertising. Even with this, they can still provide a good marketing opportunity.
Take the example of the rise of devices in the home such as Amazon Echo along with many others. This brings streaming right into the homes of individuals and led to a boost in real estate lawyer Toronto business. There are a number of potential advertising opportunities within that technology alone.
An ad tech company is positioned to then take advantage of this. I’m not saying that Google and Facebook wouldn’t know of this potential market, but they tend to focus elsewhere instead.
But how can they achieve any kind of success? These few points may make it easier to understand.
Collaboration Is Important
Small ad tech companies should look at collaborating with others to make a bigger impact. At the same time, there are those companies that are consolidating with one another to give themselves more power to tackle the big two.
Also, this does lead to a decrease in the number of ad tech companies. The theory is that it makes them less likely to then be swallowed up by Google or Facebook. Of course, the fact that they both have more than enough money to buy anybody should stay at the forefront of your mind.
Look Outside The Main Audience
Doing research of your market has always been important. Becoming aware of the main audience that Facebook and Google focus on is one of the only ways in which the ad tech companies can survive.
These companies may wish to consider checking out areas where the main players are currently seen as failing. At this moment, this would then focus on issues of privacy and security and there is every possibility that companies could gain a significant foothold in those areas.
Focus On The Niche
This may indeed result in focusing on the niche market. Even with this approach there is a need for some thought being put into the niches to target. You are looking at a market where there may be a low volume but there is a high average spend. That way, companies can counteract the fact that the market is smaller and still gain an impressive turnover.
There is little doubt that the smaller company can indeed make headway in these markets. Let’s face it, neither Facebook or Google were the first of their kind. Instead, they saw an opportunity to do things slightly differently and ran with that idea. If they can do it, then why couldn’t other companies do it even in a smaller way with them?
The most important thing of all is that ad tech companies never throw in the towel. They need to spend a considerable amount of time identifying those markets that they can then exploit. As long as they offer a strong service or product and provide a sense of value to their clients, then the big guns may not end up having everything their own way.