AD TECH AND MARTECH
LUMA Partners | April 08, 2021
Seven ad tech companies made transactions valued at over $1 billion in the first quarter of 2021 – double the amount that’s happened in the past few years combined.
“We’ve got a perfect storm here of different forces lining up, which created such a strong quarter,” said Conor McKenna, LUMA Partners director. The ad tech investment banking firm LUMA tallied up recent deals in its Q1 2021 Market Report last week.
Multiple paths to get to $1 billion exist IPOs, SPACs, and acquisitions – often by public companies flush with cash from spiking valuations.
In Q1, those billion-dollar transactions included Magnite buying SpotX, Viant going public, Taboola and ironSource going the SPAC route, Vista taking a majority stake in TripleLift and AppLovin and DoubleVerify filing for an IPO.
Macroeconomic, media, and marketing industry and market trends are currently all in sync, McKenna said.
First, government stimulus funds accelerated recovery while cheap interest rates created economic buoyancy. Regarding the marketing industry, McKenna said “the overall media and marketing ecosystem has been on a growth tear for years, and the pandemic has led to an inflection point across streaming, gaming, and e-commerce.” Finally, investors are seeking new opportunities that are leading to a bumper crop of IPOs and SPACs.
And the ad tech companies that go public might acquire more ad tech companies, McKenna said.
“The market is rewarding action,” McKenna said. When Magnite bought SpotX and when Digital Turbine spent $1 billion acquiring Fyber, AdColony, and Appreciate, their respective stocks jumped by more than the value of the actual deal, he said.
Right now, with markets so focused on growth, it’s better “to make errors of commission rather than omission,” he said.
The rush to CTV
“CTV has become a crucial narrative for any company that’s touching media, marketing or technology,” McKenna said.'
The TV space is hot: Vizio went public, Magnite bought SpotX, LG acquired Alphonso for $125 million, Comcast’s Freewheel closed its purchase of Beeswax and Roku acquired Nielsen’s video ad tech assets.
The Nielsen-Roku deal held particular interest to McKenna because it indicates how an OTT player could expand into data-driven linear ads.
“In the traditional TV ecosystem, the supply side is the scarce side of the market,” he said. “Roku, one of the largest AVOD CTV players, is looking for more supply beyond what they’re touching, and moving into data-driven TV advertising.” This migration will be slow – over the next decade – but the trend toward convergent TV is in motion.
Identity crisis? Not in ad tech
When Google Chrome said it would remove third-party cookies last year, it injected plenty of uncertainty into the market. The ensuing pandemic didn’t help matters, halting deal-making for more than 90 days, McKenna said.
But while few know exactly what marketing will look like come 2022, that uncertainty isn’t having a huge effect.
Though Q1 2021 may go unmatched in terms of deal-making, there are still plenty of conversations happening at LUMA that indicate more companies will pair up or go public in 2021.
The new, billion-dollar big fish can snap up smaller ad tech companies. For instance, Magnite was able to purchase SpotX after its stock hit record highs. “There are now very large, viable buyers that are deep in the ecosystem,” he said, along with an influx of consumers consuming media and shopping online – a perfect storm that’s continuing unabated.
Stagwell | December 18, 2021
Stagwell Inc. (NASDAQ: STGW) and Stagwell Media Network today announced a strategic partnership with leading out-of-home (OOH) media specialist Talon to accelerate global growth in OOH advertising. Talon joins Stagwell's network to expand their collective global presence in offering smarter, data-driven, and creative-led OOH planning, buying, and proprietary technologies to advertisers.
With the outdoor movement returning to pre-pandemic levels, the global OOH market is rebounding quickly, achieving a 21.8 percent uptick this year and an expected 13.3 percent increase in 2022, according to WARC. The combination of Talon's deep investments in market-leading adtech platforms, including Ada, Atlas and Plato and strategy-led OOH leadership, and Stagwell's global scale offers brands and agencies around the world a powerful path for accessing innovative capabilities to power outcomes-based OOH campaigns.
The global digital OOH market is highly fragmented and represents an untapped growth opportunity and Talon has built an impressive portfolio of technology and service capabilities with a deep bench strength of OOH specialists. Our collaboration with Talon will help educate more brands and agencies across the global marketplace on the growing OOH opportunities for tapping into richer behavioral and location insights for quantifying the channel's true impact across the customer journey."
Jon Schaaf, Global Chief Investment Officer of Stagwell.
Barry Cupples, Talon's Global CEO said, "The digital transformation of OOH is bringing game-changing opportunities for advertisers to apply modern, data-driven advertising techniques to target audiences and measure outcomes more precisely than ever. Stagwell is one of the fastest-growing and transformative creative services networks and we look forward to our collaboration in fueling our next stage of growth in making it easier for advertisers in more markets to access and execute captivating and performance-driven OOH campaigns that surround people's everyday journeys."
With its complementary media capability of global digital out of home, Talon joins Stagwell's diverse network of Affiliate Partners providing unique solutions around the world. Designed to provide brands with capabilities to engage audiences during pivotal moments across cultures, Stagwell's Affiliate Network spans a host of capabilities including e-commerce, scaled content and media.
This partnership comes on the heels of Talon's rapid expansion in the U.S. market. Talon formed a strategic partnership with The Buntin Group to create a new entity named Talon-Buntin America that delivers scale, agility, and expanded capabilities for local and regional brands. In addition, Talon unveiled a new connected video offering, which unifies OTT and digital OOH (DOOH) advertising through a new partnership with MadHive. Earlier this year, Talon formed a North American partnership with Hivestack that makes OOH buying as frictionless as possible with self-serve access for advertisers.
Talon Outdoor is the leading global independent Out of Home (OOH) media specialist and technology services company focused on delivering smarter, creative, data-driven integrated OOH communications. Combining independence with a collaborative approach, Talon promotes open and transparent working relationships between many of the world's leading agencies, clients, and media partners. Headquartered in London with additional offices in Manchester and its affiliate Talon America LLC headquartered in New York City, Talon delivers expertise at the global, national, regional, and local levels. Plexus is Talon's global OOH planning and buying network that connects over 20 Talon and partner offices around the world enabling expert campaign planning in over 100 markets worldwide.
About Stagwell Inc.:
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 10,000+ specialists in 20+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.
About Stagwell Media Network
Stagwell's Media Network is a group of leading multichannel agencies home to more than 3,000 experts with an expansive global footprint across 40+ offices in 20 countries, managing close to $5 billion in media. Agencies include Assembly, MMI Agency, Media Kitchen, and Grason, creative consultancy GALE, B2B specialist Multiview, multilingual content agency Locaria, and travel and media experts Ink. The network offers marketers a more dynamic partner for global B2B and B2C solutions spanning data, technology, media, and creativity aimed at accelerating business growth for brands worldwide.
ADVERTISER CAMPAIGN MANAGEMENT
WPP | February 01, 2022
WPP and Instacart, the leading online grocery platform in North America, today announced a new partnership offering advertising solutions and measurement tools for CPG brands. The first of its kind partnership will give WPP and its clients early insight into Instacart Ads product offerings and access to new tools and features on the platform.
With the largest footprint across the CPG category globally, WPP recognized the importance of building advanced retail and commerce capabilities early on. The partnership with Instacart Ads, which offers a robust suite of advertising products, reflects WPP’s commitment to lead the market by delivering advanced, end-to-end commerce solutions that allow brands to thrive in online environments.
As the inaugural Analytics API partner, WPP will gain access to a custom analytics API and data integration tool that enables WPP agencies to develop unique insights for clients, including basket analysis and lifetime value. The partnership will also include custom campaign measurement and management indexes to ensure clients can optimize spend and sustainable growth on the platform.
Additionally, the companies will co-develop the first Instacart Ads agency certification program designed to provide teams with an advanced level of proficiency across Instacart’s app and products. As part of this commitment, WPP and Instacart Ads will collaborate on the learning agenda and content, and WPP teams will gain access to the certification program before it is launched to the general market. WPP has committed to having 1,000 employees certified by the program within the first six months of launch.
The pandemic has rapidly transformed the way people shop and what they expect from brands online. This behavioral shift means we need to use cutting-edge advertising tools for brands that now need to connect and engage with their consumers across all channels. We are delighted that our new partnership with Instacart Ads will allow WPP agencies to deliver even more innovative solutions to clients that enhance the online grocery shopping experience.”
Doug Chavez, Vice President of Strategic Partnerships at WPP
WPP is the creative transformation company. We use the power of creativity to build better futures for our people, planet, clients and communities.