AdTech and Digital Media Services

In programmatic advertising, whether you report revenue gross or net is not a simple call. Under ASC 606, the answer depends on whether your platform actually controls the ad space before it moves to the buyer. Get it wrong and your financials tell the wrong story to investors, auditors, and acquirers. Withum works with AdTech companies to work through the principal-versus-agent analysis specific to their platform structure, so your revenue reporting holds up under scrutiny.

States are moving fast to tax digital advertising and SaaS-adjacent services, and the rules are different everywhere. A platform that runs ad campaigns in New York may have very different exposure than one operating in Texas or Florida. Many AdTech companies are sitting on unaddressed nexus risk without realizing it. Withum’s state and local tax team helps you map your exposure, get current, and build a compliance structure that scales as you grow into new markets.

If your team is building bidding algorithms, audience-targeting models, measurement tools, or attribution infrastructure, a meaningful portion of that work likely qualifies for R&D tax credits. Many AdTech companies leave this opportunity on the table because they don’t realize the R&D credit applies to software and data development activities. Withum prepares the technical and financial documentation needed to confidently claim credits, and we defend those claims if the IRS comes calling.

AdTech companies with operations, IP, or data infrastructure outside the U.S. face real transfer pricing risk. When ad tech, algorithms, or data rights cross borders between related entities, the IRS and foreign tax authorities expect those transactions to be priced at arm’s length and documented accordingly. Without a solid transfer pricing policy, you could be exposed to penalties and double taxation. Withum helps you structure intercompany arrangements from the start, so they hold up as you scale globally.

Whether you are raising a Series B, preparing for an acquisition, or working toward an IPO, clean financials and a defensible valuation are table stakes. AdTech companies with complex equity structures, stock-based compensation, or revenue recognition questions need those issues resolved well before a deal is on the table. Withum provides audited financial statements, 409A and M&A valuations, and the technical accounting support that lets founders move through due diligence without surprises.