The market size of the advertising technology (ad tech) is likely to surpass $100 billion by 2021, up from the current $50-plus billion, a market research firm says.
Oracle established Oracle Data Cloud as a leader in this nascent and fast-moving subsegment of advertising technology.
Oracle created Data Cloud through a number of acquisitions. It bought BlueKai Audience Exchange in Q1 2014 for $400 million. To measure impact of online ad exposure to offline sales, Oracle acquired Datalogix in Q4 2014 for $1.2 billion.
In addition , the $200 million AddThis acquisition in Q1 2016, $50 million buying of Crosswise in Q2 2016 and $850 million acquisition of Moat in Q2 2017 equipped Oracle to lead the ad tech industry.
At the network reception for Oracle’s 2017 Data Summit, Eric Roza, general manager and SVP of Oracle Data Cloud, announced Oracle’s decision to purchase Moat, a vendor specializing in campaign ad viewability and brand safety.
Market research firm TBR estimates Moat had annualized revenues of $150 million at the time of announcement, which means Oracle paid a revenue multiple of nearly six times for Moat.
This compares to Salesforce’s 4Q16 acquisition of data management platform (DMP) vendor Krux, which was purchased for a multiple of 15 times revenue.
While Krux and Moat may be classified as data and analytics vendors, Moat’s position as an advertising measurement tool provider is a key differentiator in a digital ad universe that is largely ruled by Facebook and Google — heavyweights that are precluding many third-party vendors, such as Krux and Oracle DMP, from gaining insights into their walled gardens, TBR surmises.
Today, Google and Facebook have become must-have properties on media plans. But, they only provide aggregate data, presenting a challenge for data-driven advertisers that seek impression-level insights on campaigns.
By acquiring Moat, Oracle will enable clients of Oracle Data Cloud to gain deeper insight into inventory pools managed by two of the industry’s largest media sellers.
Oracle’s third annual Data Summit, held in New York on April 18, 2017, showcased Oracle Data Cloud’s capabilities and explored the role of data in today’s economy.
The advertising data economy offers $2 billion opportunities. TBR estimates that Data as a Service (DaaS) revenue opportunities that include ad targeting and measurement will exceed $2 billion in 2017, growing over 20 percent year-to-year through 2021.
