Adweek: The Pandemic Is Testing Ad Tech’s Business Model
The coronavirus pandemic has highlighted the volatility of the typical revenue model in ad tech, whereby companies are largely reliant on taking a percentage of media spend and is accelerating the push for more stable modes of income.
Terry Kawaja, CEO of LUMA Partners, explains that it’s up to a brand or agency’s procurement team to buy a SaaS offering, and that can be difficult when budgets are planned against a percentage of media, not around technology solutions. Oftentimes, such teams calculate the associated costs as a percent of media.
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