Oracle, a significant player in the advertising data industry, has decided to shut down its advertising division. This division had included Datalogix, Grapeshot, Moat, and BlueKai, all well-respected components. The decision came suddenly, leaving many current and former employees surprised and disappointed. The company did not inform Oracle Data Cloud (ODC) employees in advance of the announcement, which was made during an earnings call. There were speculations about the possible sale of Datalogix and BlueKai before the decision was finalized, but no buyers emerged.
The decline of Oracle’s advertising business can be traced back to factors such as Facebook cutting ties with third-party data sellers and the implementation of GDPR in Europe. ODC was heavily reliant on third-party data marketplaces, which faced challenges as regulations tightened. Oracle’s decision to exit the advertising business can also be attributed to its core focus shifting away from media buying and advertising to measurement and analysis. Despite efforts to grow the advertising business, it was unsustainable due to regulatory risks and declining revenue.
The closure of Oracle Data Cloud has left the industry in shock, as valuable assets such as Grapeshot and Moat will no longer be available. There is uncertainty surrounding why these assets were not sold off, especially given their potential value. Competitors like IAS, DoubleVerify, and LiveRamp stand to benefit from the closure of ODC, as they can attract former customers and employees. The repercussions of ODC’s closure are significant for the programmatic ecosystem, as market dynamics shift and new opportunities arise.
While Oracle Advertising earned $300 million in revenue last year, this amount may seem insignificant for Oracle but is a valuable addition for others in the industry. The closure of ODC has left many employees disheartened, as they saw the potential in the vision of creating a comprehensive data platform. Despite the challenges faced by ODC, there were individuals who believed in the vision and worked towards making it a reality. Ultimately, the demise of ODC highlights the volatile nature of the advertising data industry and the need for companies to adapt to changing market conditions.
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https://www.adexchanger.com/marketers/inside-the-fall-of-oracles-advertising-business/