Grupo Cisneros’s digital unit RedMas just announced that it is acquiring Buenos Aires, Argentina headquartered Kontextua. RedMas will invest $2 million in Kontextua to develop new digital advertising platforms and extend the online network's reach in Chile, Mexico, Brazil, Colombia, and in the U.S. Hispanic market.
Kontextua was founded two years ago by German Herebia and Carlos Cordoba and developed into an innovative online advertising platform for the creation and commercialization of unexploited online advertising real estate, with emphasis on in-text advertising as well as in-image advertising options. Kontextua has more than 12,000 Spanish- and Portuguese-language affiliated sites, reaching over 60 million unique viewers. Kontextua’s technology scans website content, recognizing texts and images that can serve as anchors for contextual advertising. Advertisers can then select from a variety of content categories or key words related to their products or services, and advertise with various audience segments.
With the acquisition,Mr. Herebia, co-founder of InZearch, and Mr. Cordoba, co-founder of ePlanning, join the Cisneros Group’s digital management team.
"Latin America’s $2.5 billion digital advertising market is growing at an accelerated rate of 15 to 20 percent annually. With Internet penetration at only 35% in the region, this market holds vast potential for RedMas," says Cisneros Group’s Chief Digital Officer Victor Kong. "The acquisition will not only contribute revenue to the Cisneros Group’s other sites, but it will also complement its business strategy of focusing on digital advertising, e-commerce, and social gaming."
“We are pleased to be part of an organization with a clear digital vision, and to be at the forefront of the expansion of its online advertising businesses in the region as part of the RedMas brand,” says Mr. Herebia.