You really have to wonder when you read an article like this, from Digiday. One talking about how, of the many firms that now make up the Digital Media Ecosphere…very many of the more recent arrivals onto the scene, are…not…profitable. Busted, broke, living off of VC dollars, hoping to either be bought, magically figure out the model that will make them money, or just go public.
What this also puts loudly onto display, is the irony that most of these same firms…in their endless hype about how they will ‘alter the economics of the Web forever’ with the new efficiencies that only their firm offers…seem to revel in such stuff even as they themselves lose money every day, week, year. Really now? Where are YOUR efficiencies? And if your “solution” is so great for the Ad world, how come you can’t make any money with it?
Even more, the cackling reaches cacophonous levels most often from the “experts” at these firms, surrounding the RTB environment. Their farce only grows as they prattle on endlessly about how there is ‘a great need for automation’ in digital advertising, shaking out all human intervention [and costs with it, presumably], even as NONE of these people are with or making any of their own firms profitable.
That is funny/sad, or sad/funny. Depends on whether you are a VC or not, I guess. And yes, all of this nascent technology is in early stages, so revenues will find a place soon. Until then, maybe a more humble realism about their skillsets [and financial viability] might help such people next time. But I guess that would be ironic too, wouldn’t it?
[On a separate note, I interviewed back in the day with some of the firms named in this piece. So my final thought surrounds how truly arrogant some of these players were in the hiring process at the time…all while running firms not making a dime. Snicker. Are they impressing anyone beside themselves, then or now?]