The most difficult challenge for a start-up enterprise to count advertising technology

Advertising technology is a growing industry, full of exciting changes, and to provide new opportunities for start-up companies. But for advertising technology start-ups, the potential for success is always accompanied by challenges that can only be overcome to make their name in the field.

Many of the most successful advertising technology start-ups have shared with me some of the challenges they face in their path to success. Here's what they think is the hardest challenge for advertising tech start-ups:

1. Competition

One of the biggest challenges facing advertising technology start-ups is competition.

"The competition is fierce because the market access threshold is relatively low and there is a lot of access to [VC] funding," Integral Ad Science company CEO Scott Knoll said. Integral AD Science is a leading advertising technology company that helps media buyers and sellers maximize ROI by assessing and reporting the value of each ad opportunity. But if startups can find a niche market and stand out from their competitors, the harvest will be huge. "Entrepreneurs have a lot of opportunities because most customers have low switching costs and many are willing to try new technologies that have not been validated," Knoll said.

Tim Cadogan is the CEO of OpenX, a leading advertising technology company that develops ad management and tracking systems. Tim Cadogan advises companies to look for ways to improve the quality and service of other companies, rather than competing with them. "Find ways to upgrade existing products and companies in the marketplace so you don't have to take unnecessary battles." ”

No matter how successful your start-up is, there will always be new companies "trying to do better and cheaper than you," Knoll said. Advertising technology start-ups are always facing stiff competition, no matter how strong they become.

2. Rapid growth

When an ad-tech start-up finds its niche, the demand for its products and services will soar, and companies need to expand and adapt to meet their growing customer base needs. For small or unprepared start-ups, the expansion of the business is a challenge.

"Early predictions when we switch from a start-up model to a scale model, what kind of talent and organizational change is needed, which is the biggest challenge we face," Cadogan said, "any successful start-up will experience this transformation to become a fast-growing ' emerging company ', a transition that is profoundly meaningful. Knowing when it's going to happen and being prepared is important for success. ”

3. Recruit Talents

Another side effect of rapid growth is the need to find and hire new talent to meet the growing needs of start-up companies.

"We have to focus on continuing to recruit top talent, which doesn't happen overnight," Knoll, "which is critical because everyone in the market is looking for the same kind of technical talent." Recruitment quickly became the top priority for our entire organization. When Knoll first started working for the company, Integral Ad Science had 18 employees working in an office. Just 3.5 of the time, the company now has more than 175 employees in 8 locations around the world. Adding such a large number of employees in a short period of time is a great stress for startups, and organizations need to adjust to avoid the pain of growth.

"My goal has been to give you as much information, content and space as possible," said Dan Greenberg, Sharethrough CEO of Sharethrough, a technology advertising start-up. "Our company currently has 130 people, And there are plans to recruit more than 100 employees over the next year, and our biggest challenge is to keep everyone in the company at a reduced level in the event of an increase in numbers.

4. Fast-paced market

Technology is evolving at an incredible pace, and it's a challenge for startups to keep up with change.

"Anticipate and prepare for the next wave of digital advertising for customers, and develop new products that can deliver real new value," Cadogan said. While companies should strive to innovate, they are easily distracted by new projects, new markets and new technologies, thus ignoring niche markets that can create value for them. To survive, Cadogan stressed, "the most important thing is to focus on niche markets."

(Via entrepreneur, fast carp)