Adtech firms were already bracing for sweeping consolidation, and now the coronavirus could accelerate that
collapsed to protect themselves if advertisers don't pay or a company goes under. But firms might have difficulty enforcing them in this shaky economic climate.Facebook, Google, and Amazon"Adtech typically sits quite far down in the payment chain, and we're going to see a horrible drop-off of payments coming through," Dominic Joseph, CEO and cofounder of search analytics firm Captify, said during a webinar hosted by Beeswax on March 25.
"After Sizmek and [IgnitionOne's] Netmining fails, publishers began to pay attention to the health of DSP partners, and with COVID-19's impact on the economy, that has only increased," said John Gentry, CEO of OpenX. "Any type of big disruption ends up benefitting Facebook, Google, and Amazon," said Ana Milicevic, a principal and cofounder of the consulting firm Sparrow Advisers. "If [companies] go under, that spend still has to go somewhere."this week asking for Facebook, Google, and Amazon to loosen their payment terms to help advertisers impacted by coronavirus.Ad exchanges say they won't budge on their payment terms, though.
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