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In Silicon Valley, every startup fears than an established brand will one day acquire a rival or build a similar offering and instantly become the industry gorilla. When it comes to advertising, Google, which claims not only both the largest ad network and number of relationships with advertisers, but the most automated and profitable system on the Internet, is the most obvious example of this phenomenon. Ditto for Oracle and Cisco in the enterprise software space and eBay and Amazon in e-commerce.

Yet while fear of the 800-pound gorilla rightfully looms, upstart ad ventures can take heart in mounting evidence that suggests online ad categories are not cornered by deep-pocketed brands, but by new market entrants. This has held true across several different categories, including Google in search, DoubleClick in ad serving, Advertising.com in display, NexTag in CPA, RightMedia in exchanges and AdMob in mobile. Each of these companies emerged from humble beginnings to become billion-dollar businesses, and did so in the face of large, incumbent competitors. Additionally, a slew of other firms exited at valuations in the hundreds of millions of dollars, among them Overture (search), Atlas (ad serving), ValueClick (display) and Quattro (mobile), to name just a few.

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