Is every tech company an adtech company? — Auren Hoffman // SafeGraph

Auren Hoffman, CEO at SafeGraph, discusses marketing success through differentiation. Ad tech generaly has two peices to consider, ads and tech. Over the last 20 years, if you just invested on the ad side, you’d have done okay, but if you invested in the tech side, you would've done incredibly well. Today, Auren talks about whether every tech company is an ad tech company.
About the speaker

Auren Hoffman

SafeGraph

 - SafeGraph

Auren is CEO at SafeGraph

Show Notes

  • 02:39
    Investing in ad tech
    Those who invested in the tech side of ad tech have done extremely well. While the tech side of ad tech will be a continually good place to invest, the ad side may not be the best place to be.
  • 04:02
    Companies in ad tech creating technology
    Many companies that call themselves ad tech or tech companies arent actually creating any new tech. Essentially, theyre just repackaging solutions that already exist.
  • 05:10
    What happened to companies on the ad side of ad tech
    Many of these ad companies became agencies which later got shut down. This is due to them not being long-term sustainable businesses. As a result, they werent great investments.
  • 06:25
    Whether every company should be an ad tech company
    Selling ads makes sense if you're a big marketplace like Instacart or Airbnb. For other types of companies, its best to stick to your core product.
  • 08:04
    Providing advertising as a revenue channel after scaling
    As companies grow, it's natural for them to layer on more channels. While it makes sense to layer on some ad tech, it shouldnt be the core reason why your company exists.
  • 09:09
    The likelihood that Apple will become an ad tech company
    Advertising isnt Apples core business. So, while it would be a great revenue generator for them, it likely wouldnt become a priority for them.

Quotes

  • "There's usually two pieces to think about with ad tech companies. There are companies much more closer to the ad part on the continuum and companies much more closer to the tech part." -Auren Hoffman, CEO, SafeGraph

  • "If you invested in ad tech over the last 20 years broadly, just as an index, and you were an angel investor, you would've done incredibly well." -Auren Hoffman, CEO, SafeGraph

  • "A lot of companies in ad tech don't have much tech. And, they're redoing things, or they're putting things in, or they're a bunch of salespeople who are doing stuff." -Auren Hoffman, CEO, SafeGraph

  • "Most companies in ad tech are more on the ad side. There's some tech in there, but they're probably overweighted on the ad side. Usually, the ones that have the better outcomes are more on the tech side." -Auren Hoffman, CEO, SafeGraph

  • "For companies that aren't huge marketplaces, stick to your core product. Running extra ads could yield a few points in margin to your company. But, there's a lot of other things you should be doing instead." -Auren Hoffman, CEO, SafeGraph

  • "Apple recently announced a buy now, pay later piece of their business. It has nothing to do with their core mission, but its a great revenue driver for the company." -Auren Hoffman, CEO, SafeGraph

About the speaker

Auren Hoffman

SafeGraph

 - SafeGraph

Auren is CEO at SafeGraph

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