MAD Tech: Is the future better together?

The convergence of marketing and advertising technology is driving a transition toward a consolidated marketplace.

David Birkhead · Venture Insights1 January 2016Period: 20163 min read

Last updated 10 June 2026

33%↓

Drop in US advertising technology funding volume (Year end 2016)

1.0→

Current version of MAD Tech transition state

Companies covered:OracleTubemogulFacebookGoogle

Abstract

This report analyses the accelerating convergence of marketing technology (mar-tech) and advertising technology (ad-tech), collectively termed MAD Tech. It highlights that current solutions fail to meet marketer needs or consumer expectations, leading to a 33% drop in US ad-tech funding by year-end 2016. The analysis explores how data management, CRM, and analytics are becoming critical for marketing clouds as they integrate media-buying execution layers to fill existing voids in the marketing stack.

Key Takeaways

Ad-tech funding in the US saw a 33% drop in volume by the end of 2016 as the market shifts.
The convergence of mar-tech and ad-tech is driven by the failure of current isolated solutions to meet consumer and marketer needs.
Major software enterprises like Oracle are acquiring ad-tech businesses, exemplified by the Tubemogul acquisition.

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Frequently Asked Questions

Capital markets are reacting to the failure of isolated solutions to meet performance expectations. US advertising technology funding volume fell by 33% at the end of 2016 as investors pivot away from standalone tools toward integrated platforms.

The convergence is a direct response to the inability of current standalone systems to satisfy consumer and marketer requirements. This transition, currently at version 1.0, focuses on merging data management and CRM with media-buying execution layers.

Major enterprises are acquiring programmatic vendors to eliminate the execution void in their marketing stacks. Oracle’s acquisition of Tubemogul exemplifies this trend toward a unified marketplace where data and media buying are no longer siloed.

MAD Tech: Is the future better together?

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