The Rise Of Ad Tech’s “Middle Powers”; Sign Up For The Vendi Tech Webinar
A couple of weeks ago, Mark Carney delivered a seminal speech on the “middle powers” absolute necessity to take greater agency over their geopolitical futures.
The crux of his argument: that there has been an overdependence on the big global powers, and now is the time to untether from overbearing hegemons and build a new partnership of equals - reclaiming some semblance of control.
It’s probably a stretch to use a similar analogy in ad tech, but that’s what we do here on The FPC Newsletter. The tenuous links are expected.
The GAM (Google, Amazon and Meta) Effect
The hyperscalers continue to run roughshod over our great industry (examples are too many to list here). The 20 percenters are under siege.
Through a combination of overwhelming scale, walled-garden shenanigans, and impressive execution, they have taken a sizeable slice of the market. Despite their best efforts, though, the independent ad tech industry is still thriving.
The continued growth of established players and the emergence of new, scaled ad businesses are proving that the world is much bigger than Google, Amazon and Meta.
Maybe it’s best we all acquiesce to these scaled ad tech powers. Seems like a safe partnership, right? Seems like a bullet-proof economic model? Undoubtedly, it’s the partnership your mother would approve of.
Time To Go Your Own Way
In summary, it’s a no-brainer decision to outsource all tech capability to GAM. Sure, right up until your - invariably low margin - dependable business model gets upended by a high-octane Silicon Valley product team or a PowerPoint-loving exec looking to leave a mark. Or worse, a panicked, burn-the-house-down mega-industry pivot.
You could instead take your cue from Mark Carney: go your own way and build something more durable (in cooperation with the best and brightest in ad tech).
FirstPartyCapital believes that owning your commercial and tech future is, in the long term, the inherently more sensible path. And it would seem some of the smartest industry operators agree.
Corporate Partnership Framework Is Resonating
Since launching our new corporate partnership initiative, we have received some interesting outreach. Just a recap on the new corporate offering - in case you haven’t seen it:
Outsourced R&D: Access our engineers (FirstPartyStudio) to build bespoke data/ad tech solutions without the massive overhead.
Strategic Equity: Gain a seat at the table and co-invest in category-leading ad tech alongside our 250+ industry LPs.
Market Intel: Quarterly briefings on AI, M&A, and non-US infrastructure shifts to keep you abreast of industry trends that affect your business.
So why are these strategics looking to work with FPC directly?
An unparalleled - and, yes, unbiased - view of the non-US ad tech world. Product development deep dives. Cutting-edge ad tech co-builds. Unique deal flow. Access to the most innovative ad tech startups. Take your pick.
Ultimately, it boils down to one word: autonomy. That’s what a vibrant industry needs, and that’s what we want to offer our partners.
We are open to speaking with smart, forward-looking corporate investors and partners. If that’s you, drop us a line at contact@firstpartycapital.com.
Sign Up For The Vendi Tech Webinar - March 23
As you know, we are doing a syndicate raise for ad tech HALO champion, Vendi Tech.
The OOH starlet is one of our best prospects for Fund 2.
Here we outline our reasons why this unique OOH and retail media crossover solution is very investible: https://newsletter.firstpartycapital.com/p/ad-tech-value-investment-why-we-are.
We will be hosting a webinar with Vendi Tech CEO, Harry Maitland-Titterton, on Mar 23. He will give a deep dive on the Vendi Tech opportunity and will field questions from potential investors. You can sign up here to book your Vendi Tech spot: https://tinyurl.com/VendiTech.
And that’s it for this edition. Have a great ad tech day.