“Short term crisis creates long term industry innovation and enterprise value creation opportunity”

by Peter Bordes for oneQube

Yes, it does. I have experienced it first hand, and built a company based on this principle coming out of the internet bubble crash.

Having been through the 1987 crash (yes I am that old:). The internet bubble compounded with 911, the 2007 financial crisis, and now coronavirus pandemic. I can say with 100% confidence that in each economic downturn, new industries or disruptive innovation within industries created the next generation of leaders, and companies that built significant enterprise value. Enabled by both consumer and industry behavioral changes. Companies who identified these patterns of change and capitalized on them, became the new dominant leaders.

The consistent change agent attributes of the last 2 crisis were efficiency, accountability, and greater ROI, and are again the key drivers today.

How the bubble correction enabled the programmatic crisis opportunity

Following the pattern and value chain logic. Before the internet bubble correction, CPM based digital advertising networks dominated the online advertising industry, and experienced a severe contraction in the correction. While ad budgets continued to migrate to digital post-bubble. We saw new forms of efficient accountable advertising such as Adsense, and the PPC model rapidly emerge and dominate the industry. Followed by the disruptive innovation of the ad exchange. Which created further efficiency by aggregating all the fragmented, siloed ad networks inventory and enabling the ability to purchase more efficiently and effectively across all the networks. While at the same time creating significant remnant inventory. Which became the key innovation driver behind a new form of programmatic automation. Allowing buyers to be able to easily access all that remnant liquidity in an automated data-driven environment.

Programmatic is not only growing rapidly. It is being adopted as the defacto primary automation that drives the entire digital advertising ecosystem, and based on the above patterns repeating themselves. Is about to be catapulted to the industry’s de facto core operating system.

Programmatic growth is accelerating in the pandemic economy based on advertisers looking for more accountable, efficient and cost-effective ways to reach audiences. Consumer’s behavioral changes are accelerating advertising demand in business verticles being fueled by the crisis, as well as the accelerated consumption of digital media from social distancing and more people having to turn to online for news and entertainment.

We are seeing our Audience Cloud marketplace supply partner’s traffic rise from 72% to 300% over the last 2 weeks, and expect that trend to continue. Creating a very unique opportunity for brands and demand-side partners to transition more budget from traditional advertising channels that are contracting, to programmatic.

Based on Nielsen data from prior major crises in recent U.S. history that forced consumers to stay home, total TV usage increased by nearly 60%. We’re not there yet, but consumption is starting to climb in the most impacted markets, the firm found.

Consumer behavioral changes impact on media consumption.

Coronavirus and economic impact resources from eMarketer.

Acceleration movement of offline to online media consumption and ad spend.
The first key issue revolves around the fact that advertising spend is already shifting online from other types of media. Many analysts now agree that when marketing budgets come under pressure in a stressed economy, those sectors that can best document their
connection to ROI, such as programmatic advertising, are far more attractive to corporate chiefs than other kinds of less-trackable traditional advertising >> READ MORE


Peter Bordes Jr

Founder & Managing Partner Trajectory Ventures. Lifetime entrepreneur, CEO, Board Member, mentor, advisor and investor.

Obsessed with the infinite realm of possibility in disruptive innovation driving global digital transformation in technology, cloud-based infrastructure, artificial intelligence, data, DevOps, fintech, robotics, aerospace, blockchain and digital media and advertising.

All author posts

Privacy Preference Center

Pin It on Pinterest

Share This