The Collapse of SVB Bank and Signature Bank has affected Publishers, Advertisers and Ad Agencies across US.
While Publishers are getting paid early by Ad Tech companies to maintain faith of liquidity. There are many tech companies focused on Ads who are finding this situation difficult. Refer a detailed report.
The Shutdown has led to Publishers and Ad Tech Companies Parking their Money to a different bank and keeping a cross check on new associations. To protect cash flow payment to Publishers was made early.
Many Demand Side Partners who had their major deposits in SVB are most affected, however there fears have allayed to a greater level after Federal Deposit Insurance Corporation gave an assurety of Protection of all Bank Deposits.
The Panic of Ad Tech Companies
The Ad Tech Companies and Firms have tried to pacify the panic by telling that the collapse of Bank has affected them in a very minor way or not affected at all. Many such companies have moved on their Funds to Troubled Banks .
SVB Bank was providing Loans and Credit Lines to many regional Banks which were linked to many Ad Tech Companies. This has affected those ad tech companies due to tightened financial situation.
Learning Lesson for Publishers and Advertisers
This Crisis has been a Learning lesson for Publisher, Demand Side Partners and Sell Side Partners who will remain cautious regarding parking of funds .Many will try to park funds in Multiple Banks . The Publishers would like to know where the Ad Tech Companies Banks are based.
Although , it is a difficult time for many such Ad Tech Firms it may lead to certain brainstorming sessions to handle such inadvertent failures /collapse of Banks in Future.
As Far as India is Concerned , the Last 15 Days after SVB Crisis, the Ad Revenue has dropped by 30 Percent for many Publisher’s , which is still going the same way. We need to wait and watch when this situation improves , so that the revenue flow normalizes.
