An independent mobile advertising platform, InMobi, on Wednesday announced the acquisition of AerServ for USD 90 million in cash and stock, to create the industry's first mediation platform with a unified programmatic auction for mobile in-app publishers.
"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 founder and CEO, InMobi, Naveen Tewari.
"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", he added.
These publishers are looking to further scale their advertising revenue using a best-in-class programmatic exchange, which will bring header bidding into mobile in-app for the first time.
Together, InMobi and AerServ's technology will deliver a next-generation platform that provides high-quality brand demand, marking the industry's first platform to deliver this combination to publishers worldwide.
"Our decision to embark on this new adventure was made easy by the great partner we have in InMobi, their expertise in the industry and global scale. 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," Speyer added.
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 USD 57.5 billion to USD 84.9 billion over the next two years, growing at an average rate of 21 percent a year.
Together, InMobi and AerServ boast over 90 percent viewability and over 70 percent video completion rate, more than double the industry benchmark for mobile, helping to meet the demands of today's brand advertisers when it comes to programmatic spend.
Further, AerServ has integration with over 75 DSP's, exchanges and agencies around the world, enhancing InMobi's global footprint.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)