Is There Room for Another Company in the Adtech Industry?
With all eyes on the advertising space the past six months due to Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) and Apple's (NASDAQ: AAPL) discussions about banning third-party cookies, many investors have been scared to buy shares of companies with skin in the game -- even though investing in the adtech space could be a very lucrative idea.
Advertising technology (or adtech) companies help advertisers effectively deliver ads to their target market by using tech and software systems to make the process more efficient and targeted. Instead of an advertiser putting an ad in the paper or randomly selecting a website to advertise on, adtech companies use data to find the best matches for advertisers and publishers so that publishers make the most money while advertisers are placing their ads in front of the people they want to target.
There are plenty of big-time players in the space, however, including businesses like The Trade Desk (NASDAQ: TTD) and Magnite (NASDAQ: MGNI). PubMatic (NASDAQ: PUBM) entered the public sphere after its initial public offering (IPO) almost one year ago, and after its peak in March -- where it jumped 150% from the start of the year -- it has fallen back down to negative returns year to date. With so many competitors in this space, is there really an opportunity left for Pubmatic to succeed?
Source Fool.com
