2013 saw 26 tech IPOs, 6 were ad tech

It’s the eve of a new year and once again every media outlet on the web and otherwise is posting their “unique” recap of the year and thoughts of things to come. For technology news outlets, 2013 is a phenomenal year to recap due to the amount of growth and activity that occurred in the industry (Facebook, Twitter, Xbox, Playstation, etc). I’d like to follow suite and take a quick look at the activity in the ad tech space this year.

Today Mashable is reporting that 2013 had the most tech IPOs since 2000, aka the .com era. While the article primarily emphasis the .com bubble parallels that can be drawn, I would like specifically focus on what portion of this year’s tech IPOs were ad tech company’s. Below is copy of the diagram from the Mashable article that lists all the IPOs for this year:

Source: Mashable.com

Source: Mashable.com

Below I’ve recreated the above chart, but isolated the companies that fall into the ad tech category:

UntitledWith the exception of Rocket Fuel and Marketo, ad tech wasn’t a phenomenal performer. While the entire tech IPO market saw a total of 77.84% in returns for this year, ad tech saw a total of 32.97% which comes in just under the NASDAQ year end ROI of 40%.

Ad tech is definitely not a sure bet right now in the investment market, but there is no denying we are just seeing the beginning of the sector’s potential. 2013 will go down as a major step in the digital revolution: Social Media took flight with Facebook and Twitter IPOs, mediums of communication evolved with Snapchat and Instagram, companies like Netflix, Hulu, and Amazon redefined how we consume and think about content, and all forms of media finally realized the internet is not only here to stay, it is the future of everything. As more people come online and more companies think of creative ways to reach and entice customers, ad tech will become more innovative and more exciting, and, eventually, more profitable.


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