AI is concentrating value within the growing $1.3 trillion global advertising economy among fewer companies with the resources to build or acquire control across the marketing supply chain. The open web's decline is reshaping advertising distribution, benefiting companies with customer data while pressuring intermediaries dependent on commoditized targeting. Competitive success increasingly depends on proprietary data and direct customer relationships, rather than data storage or targeting capabilities alone.
Private equity firms that acquired ad tech businesses when growth expectations were stronger could face a painful adjustment. Mark Boidman, Solomon Partners' head of media and entertainment, predicted an eventual surge in pressure to sell holdings and return capital to limited partners.
Customers increasingly want integrated technology, customer data, analytics and campaign-performance services, putting pressure on marketing technology systems in the AI era. Businesses that control customer data have the strongest position to make acquisitions as consolidation accelerates. Salesforce and ServiceNow have bought businesses specializing in analytics and AI-agent deployment, with Listen Labs and Sweep among the examples.
Luma Partners data show ad tech transactions rose sharply between 2023 and 2025. However, transaction activity was roughly unchanged in this year's first three quarters compared with the first nine months of 2025. Investors continue acquiring businesses during the industry's structural adjustment. However, companies face differing outcomes as investors reconsider which vendors can remain competitive in the AI era.
Supply chain platforms Magnite and PubMatic are expanding services outside the open web to maintain relevance as web traffic declines. Zeta is combining advertising technology and marketing technology to execute and improve campaigns through the marketing funnel to purchase. Digital Turbine, which focuses on smartphone advertising technology, is benefiting as attention shifts toward apps.
Some ad tech companies are struggling to generate enough growth to reassure investors about survival in the AI era. The open web's decline is putting pressure on Teads and Taboola. The Trade Desk, previously valued for strong growth prospects, faces substantial challenges as proprietary-data owners such as Amazon increase investment in rival demand-side platform technology.
Measurement companies' data is gaining value as attention shifts toward closed platforms. However, investors believe combining measurement data with platforms capable of optimizing campaigns can generate substantially greater value. That trend has driven take-private transactions involving major measurement businesses, including Nielsen, Integral Ad Science, DoubleVerify and Cint.
AI Reshapes $1.3T Ad Tech Industry, Squeezing Middlemen
FLASH AIShare
Summary
On-chain data shows AI is consolidating value in the $1.3 trillion ad tech sector, favoring firms with customer data and direct relationships. On-chain analysis reveals declining open web ad distribution is squeezing intermediaries. Ad tech M&A spiked from 2023 to 2025 but has since leveled off. Magnite and PubMatic are shifting beyond the open web, while Teads and Taboola struggle as platforms like Amazon gain traction.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.