Publicis Groupe buys 20% in Matomy
What: T Publicis Groupe will acquire 20% of digital performance-based advertising company Matomy .
Why it matters: Although both companies will continue to operate independently, Publicis will profit from Matomy's performance marketing know-how.
Matomy Media Group Ltd, a global digital performance-based advertising company, has agreed to a strategic partnership with Publicis Groupe through which Publicis Groupe will acquire 20% of Matomy’s shares at a price of 227 pence per share. In addition, Publicis Groupe has been granted an irrevocable option to acquire a further 4.9% of Matomy’s shares.
Through this investment, Publicis Groupe and Matomy will together build a global leader in performance advertising, one of the most complex aspects of online marketing, which requires an intricate understanding of the behavior and acquisition of customers in the digital age.
Ulises Vazquez, partner and CEO of Matomy Mexico, commented on this transaction that involves the firm that he represents and is headquartered in Tel Aviv: “Large advertising agencies understand the need to be more active in expanding their technological capabilities, it is clear that there is a special interest in new models and digital advertising technologies. Matomy has always sought to be an ally of advertising agencies and extend their abilities, giving them access to technology in online marketing, "said Vazquez.
Large advertising agencies understand the need to be more active in expanding their technological capabilities, it is clear that there is a special interest in new models and digital advertising technologies
Maurice Lévy, Chairman and CEO, Publicis Groupe, hailed Tel Aviv's position as a leader in technological innovations and patents worldwide, only after Silicon Valley.
“Matomy is fuelled by the innovators and technology experts of Israel and has quickly risen to the top of this important market by creating a world-leading, state-of-the-art platform,” said Levy. “At Publicis Groupe, we make it a priority to invest in the brightest and most promising talent and technology that will give our clients around the world unrivalled access to these services.”
We have pioneered and invested in new technology, open platforms and partnerships. With Matomy, we will continue to build and promote an open environment for the exchange of ideas and innovation, essential to staying on top in today’s transformational digital age.
Ilan Shiloah, Chairman of Matomy, added that today an impressive transformation in the digital advertising industry is happening, and the performance-based advertising space is an area of high growth potential fuelled by innovation and technology across all channels.
“Our vision is to build the best performance-based media company in the world, and with Publicis Groupe becoming our largest shareholder, we will be able to create a more mature and sustainable ecosystem, providing marketers with an unprecedented ability to accurately engage, acquire and retain customers,”said Shiloah.
What is there to know about Matomy?
- Founded in 2007, It’s a firm that has a market capitalization of US $327 million.
- It has grown rapidly in recent years, maintaining a sustainable and highly profitable financial model that has enabled the company to achieve positive adjusted EBITDA every year since 2008.
- The company is today present around the world and counts with nearly 400 experts worldwide who provide service to their more than 1,600 active clients, including American Express, HSBC and Experian.
- In addition, it has 16,000-plus registered digital media sources and operations in more than 100 countries.
Matomy’s performance-based approach to digital advertising includes an integrated multi-channel performance platform, proprietary core technology and tools for third-party media sources.
Through this approach, advertisers have a single point of contact across all major digital media channels, fueled by big data that reaches targeted consumers and provides measurable results.
Matomy charges its customers only if it achieves certain pre-defined measurable results — such as sales, consumer acquisitions, leads and mobile app installations — or “pure” performance. The “pure” performance model is currently a $12 billion market, forecast to reach US$45 billion–US$60 billion by 2020, according to the IAB’s Online Performance Marketing Study.