Eric Franchi, a leading ad tech investor at Aperiam Ventures known for backing startups like Adelaide, shares insights on the recent $1.4 million funding for attention metrics technology. He and Harriet Dernford-Smith, COO of Adverity, discuss Meta's new ventures in third-party attribution and the evolution of advertising metrics amidst AI advancements. They analyze the growing importance of data governance and the challenges surrounding conversion tracking in a rapidly changing digital landscape, highlighting the necessity of rebuilding trust in advertising practices.
Investors prioritize startups with strong teams and clear visions, focusing on how they can add value to their growth.
The shift towards attention metrics reflects a demand for reliable advertising effectiveness measures, driven by marketers facing media fragmentation.
Deep dives
Investment Criteria in Ad Tech
Key factors for evaluating ad tech startups include the quality of the team, the clarity of their vision, and their potential for traction. Investors prioritize working with a strong team capable of navigating the challenges of startup life, alongside a compelling vision that aligns with market demands. As startups mature, considerations shift towards product development and revenue generation. Importantly, investors also seek to discern how they can add value to the company, leveraging their networks and experience to support the startup's growth.
Emerging Importance of Attention Metrics
The growing focus on attention metrics reflects industry concerns over traditional media quality measures like viewability, which can be easily manipulated. Attention metrics are gaining traction as a more reliable indicator of advertising effectiveness, especially with the backing of major clients, such as half of the Fortune 50 employing attention metric frameworks like Adelaide. This trend can be attributed to marketers seeking innovative ways to evaluate campaign performance amidst increasing media fragmentation. Ultimately, attention metrics are becoming crucial for sophisticated measurement strategies that connect consumer engagement to outcomes.
Ad Tech's Evolving Landscape
The current ad tech market is viewed as more mature, leading to fewer funding announcements for startups compared to previous years, although significant opportunities are anticipated ahead. Investment patterns suggest a focus on building enduring company value rather than the sheer volume of funding rounds, which signals a healthy evolution. Investors acknowledge the exciting potential of AI technologies that promise to enhance ad tech innovations and drive strategic growth. This shift is expected to foster a new wave of startups while raising the quality threshold for investment opportunities.
Meta's Shift Towards Third-Party Attribution
Meta is beginning to embrace third-party attribution and incrementality measurement, signifying a notable shift in its advertising strategy. By integrating with established analytics tools like Google Analytics, Meta aims to rebuild trust with advertisers who have historically been skeptical of its measurement claims. This move is seen as a way for Meta to prove its effectiveness in driving conversions, simultaneously benefiting its own advertising performance metrics. Advertisers are encouraged to leverage these integrations as they navigate the complexities of measuring ad success in an increasingly competitive landscape.
Special guest and prolific ad tech investor Eric Franchi of Aperiam Ventures discusses his firm’s recent bet on attention metrics startup Adelaide. Plus: What’s up with Meta’s new third-party attribution partnerships?
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode