Investors have a perennial difficulty in applying valuation principles to benchmark successful business models based on digital video and mobile ad tech. The M & A 2014 – 2018 CAGR analysis suggest that both privately-held and publicly-traded vendors will witness a steady increase in their business shares through 2018. The revenue growth analysis report has been compiled after extensive research on finances by AccuStream Research.
The report shows actual figures of video and mobile ad revenues that indicate the growth of each type of company and the amount of market presence they will have. Observations have been gathered from data spanning independent, acquired and publicly traded vendors. According to the report, the global marketplace stands at $26 billion in 2016. By including Facebook audience, it stands at $41 billion.
Prediction of Future Growths
By excluding Facebook audience, desktop platform vendors in 2016 are expected to gather 56.5% of the marketplace. With Facebook, the numbers climb to 64%. Between 2014 and 2018, an analysis report of publicly traded vendors indicates 35% revenue expansion leading to 20% total revenue in 2016. The report forecasts run-rate revenues of publicly traded mobile ad tech and digital video companies will generate approximately $8.9 billion.
Out of the total number of companies, 67% of the entire revenue will be from global mobile ad vendors except Facebook. But when Facebook is involved, the revenues reach $24.1 billion with 87.5% market presence of mobile vendors. Facebook has a huge user base and 88.5% are active daily users.
Independent versus Publicly-Traded Vendors
Independent vendors are expected to generate 22% and 33.2% of total revenues by 2016 and 2018 respectively. Since 2015, almost $17 billion has been spent on mobile, video and cross-channel ad tech solutions. The publicly traded companies and vendors except Facebook are expected to deliver 41.4% of net revenues in 2016.
The acquired mobile ad and video ad tech vendors are expected to grow by 29.6% collecting 58% of total revenues by the end of 2016. They are expected to capture 35% of the marketplace by 2018.
Independent firms still own about 27% to 30% of the marketplace and it is anticipated that they will capture about 27.6% of the market by 2018. The number put forward by the report clearly indicates that the market looks good for independent, acquired and publicly traded vendors. By 2018, the digital video and mobile ad tech industry will witness substantial amount of growth.