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Consolidation: GumGum and ShowHeroes Announce Partnership with Special Focus on the U.S. Market

GumGum's advertisers in North America can leverage ShowHeroes' extensive premium video inventory. The deal reflects wider consolidation trends in the ad-tech sector.

Content

GumGum, a digital advertising platform that prioritizes contextual targeting, and ShowHeroes, a contextual online video and CTV advertising company, have entered a global partnership with a particular emphasis on the U.S. market. Showheroes opened a New York City office in the spring of 2022 but recently closed it and is betting on the GumGum partnership. As of today, GumGum’s advertisers in North America can leverage ShowHeroes’ premium video inventory, which reaches over 2 billion unique users monthly.

Advertisers can utilize both In-Stream and Out-Stream video formats through managed service, with options for direct and programmatic bookings available immediately. This partnership enhances GumGum’s current reach, supported by its MRC Content Level Accredited Contextual and Brand Safety service, Verity, which ensures precise targeting and optimal brand safety by delivering ads in the most appropriate and relevant contexts.

“We are thrilled to make this partnership public, as it has been in the making for quite some time. GumGum’s strong presence in the U.S. market perfectly complements ShowHeroes’ unrivaled global footprint in the video and CTV space. Hence, this collaboration manifests a significant opportunity for us to expand our activities.” said Ilhan Zengin, CEO of ShowHeroes in the press release. “We are excited to introduce our premium video inventory to a broader audience and drive results for our publishers in the process.”

Consolidation in the Space

The GumGum ShowHeroes partnership reflects the increasing consolidation in the digital space with ad-tech companies Equativ and ShareThrough recently merging. In addition, Cadent purchasing performance advertising company Adtheorent and Seedtag acquiring SSP Beachfront. 

“These moves are responses to global macroeconomic pressures that have shifted valuations from growth multiples to EBITDA, driving streamlining and layoffs even among giants like Meta and Amazon. While we anticipate more M&A activity, it’s clear that consolidation is now a crucial strategy for staying competitive and delivering value in our mature market,” ShowHeroes CEO, Ilhan Zengin, noted in a recent LinkedIn post.

Strengthened by a US $75 million investment from Goldman Sachs Growth, GumGum has expanded its global footprint by acquiring JustPremium, an Amsterdam-based programmatic company, and Playground XYZ, an Australian attention platform.

“These moves are responses to global macroeconomic pressures that have shifted valuations from growth multiples to EBITDA, driving streamlining and layoffs even among giants like Meta and Amazon.”

The consolidation drivers reflect a certain market saturation despite the high growth rates in the video and CTV markets and opportunities for substantial cost savings. In addition, persistently high interest rates have depressed the valuations of ad-tech companies, which now look for more scale to increase their valuations in the private and public markets.

Better Offering Precision-Driven Marketing Strategies

GumGum and ShowHeroes announce global partnership with special focus on the U.S. market
Image: Showheroes Group

GumGum’s CEO, Phil Schraeder, stated, “We are very excited to tap into ShowHeroes’ video expertise and offer their exclusive supply starting today. Brands and agencies are increasingly prioritizing precision-driven marketing strategies to achieve cost-effective and efficient results. They are focused on streamlining processes and centralizing technology providers globally. Now, with GumGum’s accredited advanced contextual solutions in OLV, CTV, and display, we can deliver robust, proprietary insights that influence smarter targeting, better creative, and strategic planning. In partnership with ShowHeroes, we offer scalable solutions in OLV, CTV, and display advertising to deliver exceptional outcomes for our clients.”

 

 

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