InMobi, an independent mobile advertising platform, today announced the acquisition of AerServ for $90 million in cash and stock. The company said this would create industry’s first mediation platform with a unified programmatic auction for mobile in-app publishers.
"This acquisition will enhance monetisation for publishers globally and further enhance the InMobi Exchange, a premium mobile programmatic platform," said the company.
Together, InMobi and AerServ’s technology will deliver a generation platform that goes beyond traditional ad mediation.
With this investment, InMobi’s video and programmatic business will account for around 35% of the overall company revenue and will solidify InMobi’s leadership position in the mobile video advertising industry in the US. InMobi Exchange scale will increase as AerServ runs more than 90 billion ad opportunities each month and provides access to brand programmatic demand to over 2,000 mobile apps.
"This acquisition fits in perfectly with our global strategy to bring next generation platforms for premium publishers. That aside, we are two profitable companies combining forces to cement our leadership position in mobile video advertising, and our integrated prowess in this space will help us scale our business in new directions globally," said Naveen Tewari, Founder and CEO, InMobi in a statement.
"Our combined platforms will bring next-generation mediation capabilities to premium publishers and establish the first programmatic video exchange in India and China. Over the next three years, we expect to increase our brand programmatic revenue tenfold with this acquisition and continue our investments in that direction. This will allow us to scale our platforms together across the globe and build a strong business in previously untapped markets such as China and broader APAC," said Josh Speyer, Chief Executive Officer at AerServ
On the demand side, brand advertisers are in need of transparent programmatic platforms of high-quality ad inventory that can be independently verified. It is expected that two-thirds of the world’s digital display advertising will be traded programmatically by 2019 and advertising sold programmatically will increase from $57.5 billion to $84.9 billion over the next two years, growing at an average rate of 21% a year.