MediaMath Goes Bankrupt: How Will the AdTech Industry Be Affected?

Adtech company MediaMath has gone bankrupt. WowYow explains how the industry will be affected and gives advice on what to do next.
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Last week, MediaMath - an adtech company that hosts a sizable DSP - declared bankruptcy, owing hundreds of millions of dollars to its creditors. Ad Exchanger’s article, “MediaMath Owes More Than $100 Million To At Least 200 Companies, Including Major SSPs,” by Allison Schiff, explains the event in greater detail. The company’s sudden platform shutdown has left advertisers scrambling to find new DSPs and instigated a chaotic rippling effect within the entire market. 

The MediaMath calamity has got everyone asking questions: How could this have been prevented? What are our DSP providers not telling us? Do we now have to resort to the adtech gatekeepers for our advertising solutions? How will this affect my business?

Many articles on the subject have written about what exactly happened to MediaMath and the causes of its bankruptcy. However, in this article, we’re going to strictly focus on the lingering effects of this event on the adtech industry and give advice on what to watch out for.

The Monopoly Riptide

The cause and effect of this bankruptcy are relatively the same: the growth of adtech monopolies. While there were several reasons for MediaMath’s decay, this one is universal. Companies like Google or Meta have been slowly expanding their digital media empire, silencing independent DSP companies in their wake.  

Let’s call this what it is: a riptide effect. After demolishing these independent DSPs, these “big guys” pull you into their waters without you even knowing. By the time you notice you’re out of options, it’s too late. The current is too strong, and with everyone scrambling to find a solution, you quickly join the one you see first. 

We see this in more ways than one. Oftentimes, these big tech companies create a problem so that they can become the solution. Google has already done this with their cookie deprecation. Google has kept pushing back their cookie deprecation for so long, as cookies were a staple of their advertising strategy. However, they recently and suddenly kicked off their Chrome cookie deprecation - but not without providing a “solution.” (Read more about his here)

All this to say, MediaMath’s bankruptcy is just another addition to the growth of monopolies in adtech. 

Make Transparency a Top Priority

As you move forward with your DSP search, remember to prioritize transparency as a key feature. While the adtech industry is in such a chaotic state, larger companies may take advantage of confused and desperate solution-seekers. 

While you may be happy with your current service from one of the big guys, remember to read the fine print and do your research. You might not be getting what you paid for…

Schiff writes that “roughly 80% of YouTube TrueView placements that run on third-party websites violate Google’s own standards by being outstream, muted, autoplay and appearing out of view.” Yikes.

And if you are finding issues like this, you want to make sure you are working with a provider that you can easily communicate with - not with a provider that makes you wait on hold for an hour or has you jump through hoops to give you the service you paid for. 

A Helping Hand

Our Mission

WowYow is dedicated to informing the public about the latest developments in tech; in fact, it is a part of our mission to make AI technology accessible and affordable for all. We believe that everyone - no matter how big, small, or tech savvy - deserves to access the advantages of technology without being kept in the dark or having to pay enormous amounts for gate-kept solutions.

We know that finding a DSP can be an intimidating task, but we sincerely hope that you find one that is transparent, affordable, and successful. That is why we are offering our services as an option for you during this search.

Contextual DSP

WowYow is highly communicative with its customers and is now offering a SaaS Contextual DSP that will allow you to manage your subscription and business solutions. You can sign up for a demo here so you can try it with a WowYow expert, and we are offering those who sign up a free $250 advertising credit to help you get started. The subscription is offered in both monthly and yearly packages, so you have the ability to try it out and see if it fits your needs. Sign up and redeem this offer here.

Tell Me More

Our Contextual DSP hits two birds with one stone, as it provides you with an affordable and efficient advertising platform while saving you from future issues with cookies and 3rd party data. Rather than invading user privacy, we use contextual data to target audiences, which is actually more effective than cookies.

The Contextual DSP has a lot of features, including: advanced targeting options, access to WowYow’s extensive SSP inventory of premium ad space, a creative studio for video and image ad creation, a wide range of basic and unique ad formats (including interactive and shoppable ads!), advanced analytics, real-time optimization, and more! We also guarantee brand safety, making sure your ads are being placed in relevant and appropriate environments.

For businesses that are trying to raise brand awareness, get their products and services in front of the right people, and increase revenue, this solution will help you accomplish this and more. 

If you’re interested in joining the Contextual DSP, please sign up for a demo and redeem your $250 of free advertising credit. Contact us today to talk to a WowYow expert!