Looming Question at Ad-Tech - Where’s the M&A?

As if those in the Internet ad sector required affirmation, the Ad-Tech event in San Francisco this week was a display of abundant opportunities. There were dozens of successful companies that many people had never heard of, there were rumors of huge revenue spikes, and there was conspicuous consumption on spendy alcohol and dining. A continuing theme is that the juggernauts - Google and Yahoo in particular - don’t seem to put any damper on the ability of other Internet ad companies to thrive. In fact the exorbitant prices that those firms charge for popular key-words make alternatives all the more interesting.
It is noteworthy, however, that nobody in the industry talks about the buyout offers that they have received from the heavies. The M&A focus of Yahoo and Google seems limited to content or software deals, rather than to try to acquire alternative ad vehicles. As those companies’ revenues eventually start to flatten, it will be interesting to see them scramble to maintain their growth rates, by acquiring revenue.
View [Ad-Tech Blog]