Adweek: The Pandemic Is Testing Ad Tech’s Business Model

Adweek "Pandemic Testing AdTech Business Models"

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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