Perspectives | The Prohaska Blog

Your right to play. Understanding your fit in the U.S. market.

Picture this: you're a European ad-tech or mar-tech firm, standing at the edge of the vast American market, feeling a bit like a football player who's just been dropped into a baseball game. You've got skills, but are they the right ones for this particular field? Let's explore how you can find your rightful place in the U.S. advertising ecosystem, with the help from our team at Prohaska Consulting. It's no longer a football pitch, you're now on a diamond. 

What Gives You the Right to Compete in the U.S.?

The U.S. advertising ecosystem is not just vast, but it's growing rapidly. As mentioned in our previous article of this series, both the ad-tech and mar-tech sectors are currently experiencing unprecedented growth, valued at hundreds of millions of dollars and with projections of more than half a trillion dollars for the next few years [1]. Said growth presents significant opportunities for European firms looking to expand. However, your “right to play” isn't granted, but earned through a combination of innovative solutions, market understanding, and strategic positioning; you need to demonstrate you bring something valuable to the table that US companies need.

Assessing Your Unique Value Proposition

Your unique value proposition (UVP) is the special ingredient that makes your solution stand out in a crowded market. It's not just about having cool technology, it's about solving real problems for U.S. businesses in ways your competitors can't match. Ask yourself:

  • What specific pain points does your solution address?
  • How does your offering differ from what's already available in the US market?
  • Can you deliver results that US companies aren't currently achieving?

Remember, in the U.S. advertising space, being different isn't enough – you need to be demonstrably better in at least one key area.

 

Reading the Room; Understanding the U.S. Market's Needs:

The U.S. market might seem familiar, but it's full of nuance that can trip up even the savviest European firms. To truly understand where you fit in, you need to conduct thorough market research and strategic analysis, keeping in mind some distinct characteristics of the ad-tech and mar-tech landscape:

  • Mobile-first approach: in 2023, mobile devices held a dominant 58% market share in the ad-tech space by platform  [2]. Any solution you bring should have strong mobile capabilities.
  • Programmatic dominance: programmatic advertising commanded an 80% market share based on Advertising Type in 2023 [3], indicating the importance of automated, data-driven solutions.
  • Retail focus: the retail & consumer goods segment dominated the ad-tech market with a 28% share by Industry Vertical in 2023 [4], suggesting ample opportunities for solutions targeting this sector.

To navigate this landscape effectively:

  • Research specific challenges: identify the unique pain points U.S. companies are facing in your niche. Are they struggling with data privacy compliance, seeking more efficient programmatic solutions, or looking for better ways to measure ROI?
  • Identify market gaps: analyse current market offerings and pinpoint areas where existing solutions fall short. This could be your opportunity to shine.
  • Align with trends and regulations: stay abreast of emerging trends and regulatory changes in the U.S. market. For instance, with the stop/start around the deprecation of third-party cookies, solutions addressing privacy concerns while maintaining targeting effectiveness are in high demand.
  • Define your target market: are you targeting enterprise-level clients who need robust, end-to-end solutions? Or are you aiming for the mid-market, where flexibility and cost-effectiveness reign supreme? Perhaps you've got a niche solution that's perfect for a specific industry vertical? 

 

Understanding your target market is like learning the nuances of local customs when you visit a new country. You need to adapt your approach to fit the expectations and needs of your chosen segment. Just as you wouldn't wear a t-shirt to a black-tie gala, you shouldn't try to force a one-size-fits-all solution into a market that demands specialisation. By thoroughly researching and understanding the U.S. market's specific needs, you can position your solution to address real pain points and fill genuine gaps, thereby establishing your right to compete in this dynamic ecosystem.

Finding Your Ecosystem:

The U.S. ad-tech market is highly fragmented, with key players like Google, Facebook, and Amazon dominating significant portions. However, there's still room for specialised solutions. For instance, the Digital Out-of-Home (DOOH) advertising channel is expected to grow to $74 billion by 2032 [6], presenting opportunities for niche players.

Conclusion: Earning Your Right to Play

The U.S. advertising ecosystem offers immense potential for European firms. However, success requires a deep understanding of market dynamics, a clear value proposition, and strategic positioning. By leveraging real market data, understanding U.S.-specific trends, and partnering with experienced U.S. firms like Prohaska Consulting, European firms can effectively carve out their niche in this competitive but rewarding market.

 


 

[1] Prohaska Consulting (2024, November 20) Navigating The Us Adtech Martech landscape | Prohaska Consulting https://prohaskaconsulting.com/navigating-the-us-adtech-martech-landscape/

[2] Market.Us. (2024, January 18). AdTech Market Anticipated Valuation Exceeds USD 2,207.4 Billion by 2033 | Owing to Rising Concern of Digital Advertising. GlobeNewswire News Room; Market.Us. https://www.globenewswire.com/news-release/2024/01/18/2811358/0/en/AdTech-Market-Anticipated-Valuation-Exceeds-USD-2-207-4-Billion-by-2033-Owing-to-Rising-Concern-of-Digital-Advertising.html 

[3] SNS Insider pvt ltd. (2024, July 17). AdTech Market to Hit US$ 1958.4 Billion by 2032, Due to Increasing Demand for Data-Driven Targeting & Programmatic Advertising | Research by SNS Insider. GlobeNewswire News Room; SNS Insider pvt ltd. https://www.globenewswire.com/news-release/2024/07/17/2914808/0/en/AdTech-Market-to-Hit-US-1958-4-Billion-by-2032-Due-to-Increasing-Demand-for-Data-Driven-Targeting-Programmatic-Advertising-Research-by-SNS-Insider.html#:~:text=Based%20on%20 Advertising%20Type%2C%20 Programmatic,in%20the%20 evolving%20AdTech%20market

[4] U.S. AdTech Market Size & Share | Industry Report, 2030. (2023). Grandviewresearch.com. https://www.grandviewresearch.com/industry-analysis/us-adtech-market-report 

[5] ExchangeWire PressBox. (2024). Opti Digital Partners with Prohaska Consulting to Drive North America Expansion - ExchangeWire.com. Exchangewire.com. https://www.exchangewire.com/blog/2024/07/19/opti-digital-partners-with-prohaska-consulting-to-drive-north-america-expansion/ 

[6] Straits Research. (2023). Digital Out-of-Home (DOOH) Advertising Market Size Growth Trends and Competitive. Straitsresearch.com. https://straitsresearch.com/report/digital-out-of-home-advertising-market

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