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Ad-Tech Primer: Investing in the Future of Digital Advertising

What you need to know:
• Public ad-tech equities are trading at historically low multiples, especially in Canada, despite consistent positive revenue growth and a pivot toward margin expansion.
• Regulatory disruption and cookie deprecation are accelerating the shift to first-party data, contextual targeting, and AI-driven personalization.
• Emerging channels like Connected TV and Retail Media are expanding monetization potential, creating asymmetric upside for nimble, vertically focused platforms.

Ad-tech is rapidly transforming how brands engage with audiences, driven by AI innovation, regulatory change, and evolving consumer habits. Once reserved for large-scale advertisers, ad-tech now powers real-time targeting, measurement, and campaign optimization across web, mobile, and CTV. As the sector shifts toward privacy-first infrastructure and scalable tools, this report explores why the sector can continue to post strong revenue growth and how investors can position themselves ahead of the curve.

Why Now?
• The phaseout of third-party cookies and the rise of privacy laws like GDPR and CPRA are reshaping the industry playbook.
• Growth in Connected TV (CTV), Retail Media Networks, and mobile-first platforms is broadening revenue channels.
• Many small and mid-cap ad-tech companies are trading at historically low valuation multiples despite stabilizing margins and renewed topline growth.

Canadian Small/Micro-Caps
Sabio Holdings (SBIO:TSXV, BUY $1.00 TARGET) is a U.S.-based advertising technology company that delivers premium connected TV advertising solutions to global brands, leveraging its household graph of 80M homes. SBIO has grown revenue at a 39% CAGR since 2020, and despite a slowdown in 2025, the Company is entering a massive 2026 driven by political spending. SBIO trades at 2.9x 2026E EBITDA.

Zoomd Technologies (ZOMD:TSXV) is an Israeli-based ad-tech company focused on mobile user acquisition, campaign automation, and performance analytics across global markets. The Company has been experiencing rapid growth, with revenue growing 70% in 2024 and 18% in 2025E, with EBITDA rising even faster. Growth slowed in Q3, with ZOMD now trading at 5.4x 2026E EBITDA.

Illumin Holdings (ILLM:TSX) is a Canadian-based omnichannel advertising platform that helps brands and agencies execute AI-optimized campaigns across programmatic, social, and email. The Company is expected to grow revenue by 5% in 2025 and reach positive adjusted EBITDA. ILLM trades at 2.3x 2026E EBITDA.

Adcore Inc. (ADCO:TSX) is an Israeli-based ad-tech company offering automation tools for e-commerce advertisers, with products spanning feed management, SEM auditing, and social media deployment. The Company posted low-single-digit growth over the past few years but is targeting an acceleration in 2026 and EBITDA profitability. ADCO trades at 0.1x LTM sales.

Ionik Corporation (INIK:TSXV) is a Canadian ad-tech firm specializing in programmatic media execution and multicultural audience targeting across CTV, mobile, and DOOH. The Company is growing revenue and EBITDA at rapid rates, but the stock has suffered due to overleverage. INIK trades at 4.7x LTM EBITDA.