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When the world’s third largest software company waves the white flag, people sit up and take notice. A few days ago (June 11, 2024), Oracle announced at an earnings call that it would be leaving the advertising industry after a string of expensive acquisitions, legal troubles, and a mountain of lost revenue. Let’s take a look at the context and see what advertisers can learn from this tech giant’s sad story.
Events Leading to the Decision
Back in 2014, Oracle purchased BlueKai Data Management to effectively begin its advertising venture, offering to improve targeted ad relevance to clients. Over the next couple of years, Oracle spent more than $4 billion acquiring other tech companies to set up its own advertising platform, known today as Oracle Advertising. This was the beginning of their many problems: Oracle spent too much time acquiring and not enough time integrating and actually putting these platforms to everyday use for the general advertiser.
The troubles continued with third-party cookies. Oracle relied on these cookies to collect and use consumer data at a time when the world was beginning to move on. Scandals in 2018 prompted Facebook to remove them entirely, and they were similarly prohibited by the newly adopted General Data Protection Regulations in Europe. Unable to pivot their software, Oracle simply excluded Europe from many aspects of its advertising services, cutting off a huge audience and severely impacting revenue.
As if that weren’t enough, Oracle failed to secure consumer consent for third-party data tracking in some cases, earning themselves a class-action lawsuit. Smelling blood in the water, numerous competitors began offering discounts that Oracle wasn’t able to match. Revenue has fallen over 85% since 2021, prompting major budget cuts and lay-offs.
An Oracle-sized Hole in the Market
Advertising is not Oracle’s main money-maker; with 2023 revenue floating around $300 million, shutting down the advertising branch and diverting resources makes a certain kind of logical sense. While Oracle was lagging behind, it was nevertheless a big name in software that will leave a small vacuum where it once stood.
The closure announcement was not accompanied by any details regarding timelines, assets, or current clientele. We can expect that Oracle Advertising’s competitors such as Salesforce Marketing and Adobe Analytics will take a swipe at the advertisers left in the water. $300 million is nothing to sneeze at, and it will be interesting to see which platforms benefit the most from this shift in the industry.
The Lesson: Play Smart, Not Expensive
Obviously, there are many factors that go into a platform’s decline. From our perspective, however, it looks like Oracle tried to jump too quickly into a market it wasn’t prepared for. Digital marketing is a complicated tech industry that is always changing, thanks to constantly evolving taste, expectations, and data privacy laws; rarely can your problems be solved by throwing more money at them.
To succeed in targeted advertising, nothing can replace solid tech and industry experience. The Genius Monkey platform, for example, builds upon state-of-the-art AI technology with human oversight to place ads well, inexpensively, and consistently. Our team plays smart, not expensive, and users can count on easy access to the expertise of our programmatic veterans.
Stay Light on Your Feet; Stay Ahead
Most importantly, adaptability ensures a company’s success. Oracle’s fate was sealed in their inability or unwillingness to adapt to new regulations, new workflows, and new integrations needed with their acquired companies. Here at Genius Monkey, we work tirelessly to stay ahead of all regulations coming down the pipeline; we were prepared for the cookieless future before many even knew it was coming.
The more things change, the more they stay the same; programmatic advertising continues its dominance in the digital world, and it’s more important than ever to get the right team and tech on your side. Whether your audience is the whole world or a small niche, Genius Monkey can elevate your marketing strategy to the next level. Contact us today and learn how!
