"Revenue-weighted growth across the sector was 26.6% in 2025, although subsequent stock ratings were not reflective of this, with prices largely heading south after market disclosure as concerns around AI and Big Tech's influence swelled."
"All management teams stressing disciplined spending and prioritizing profitability over aggressive expansion, although some hinted at potential (selective) mergers and acquisitions."
"AI-driven product development, with teams at Zeta Global, Criteo, and The Trade Desk emphasizing this as a key growth driver, lauding its potential for automation and predictive targeting."
"Companies exposed to commerce media - notably Criteo and Taboola - acknowledged retail media softness and uneven advertiser demand."
Ad tech earnings calls revealed mixed performance across the sector in 2025, with average revenue growth of 17.4% and revenue-weighted growth of 26.6%. Notable outliers included AppLovin's 70% growth and Teads' 46% post-merger growth, contrasted with declines at Perion and PubMatic. Management teams emphasized disciplined spending and profitability prioritization over expansion, with selective M&A potential. AI-driven product development emerged as a key growth driver across Zeta Global, Criteo, and The Trade Desk. Commerce media companies faced softness and uneven demand, while macro cyclicality affected brand and CTV budgets. Despite strong revenue performance, stock prices declined following market disclosure due to AI disruption concerns and Big Tech influence.
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