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What: AT&T is negotiating the acquisition of advertising tech platform AppNexus.
Why it matters: This would allow AT&T to compete with Facebook and Google, companies that are currently dominating the industry of digital advertising.

A few days after AT&T completed the acquisition of Time Warner at US $85 million, it has been announced that the telcom company is negotiating the purchase of AppNexus for what some sources are saying could be a sum larger than US $1.6 billion.

After acquiring AppNexus, AT&T would be able to monetize Time Warner contents through an advertising platform. Those contents include HBO, Warner Bros, CNN, etc. The deal is expected to close in the third quarter of 2018.

“Ad tech unites real-time analytics and technology with our premium TV and video content,” said Brian Lesser, CEO of the division at AT&T. “So, we went out and found the strongest player in the space. AppNexus has scale of infrastructure, advanced technology and diverse talent. The combination of AT&T advertising & analytics and AppNexus will help deliver a world-class advertising platform that provides brands and publishers a new and innovative way to reach consumers in the marketplace today.”

“Innovation is core to the heritage of both AT&T and AppNexus, and we have an exciting opportunity to chart the future course of advertising together,” said Brian O’Kelley, CEO, AppNexus, in a statement. “Combining AT&T’s incredible assets with our technology, we will help brands and marketers power new advertising experiences for consumers. It’s what the market is asking for, and together we’re poised to deliver it.”

Through advertising, carriers like AT&T can grow their revenues around the data that they already have about their connectivity customers. While AT&T is focused mainly on the US market, AppNexus will give it further reach into Asia-Pacific, Australia, Europe, and Latin America, where the company already owns Mexican carriers Iusacell, Nextel, and Unefón, as well as DirecTV Latin America.

Are digital publishers in the U.S. Hispanic market and Latin America adopting header bidding? Does it really lead to increased transparency between digital media buyers and publishers? We look at these topics and speak to some regional industry leaders to gain insight on header bidding’s role in the adoption of programmatic buying.

Header bidding was invented to help publishers find the best prices for ad space inventory through avoiding the trouble spots generated by the waterfall effect of Google’s DoubleClick for Publishers (DFP).  Basically, header bidding is a way for digital publishers to directly solicit an essentially simultaneous auction from all the bidders or buyers of digital advertising. While this all sounds nice, publishers in the region have hesitated to adopt header bidding as the rapid pace of the industry makes it near impossible to keep up with (and understand) the latest tools available.

Consensus:  Slow Uptake of Header Bidding

natalia borges
Natalia Borges

The general sentiment in the industry is that Latin America is hesitant to adopt header bidding even when there is great interest and enthusiasm about its existence. Some in the industry started exploring the option early. Natalia Borges, vice president of marketing at Batanga Media, which is active in the U.S. and Latin America, says that the company started to explore header bidding in 2012, but that “the first programmatic header bid impression didn’t come in until July of 2014.”

Peter Gervai, Director of AppNexus Latin America, has been pleasantly surprised by the region’s awareness of header bidding, but says that much of the interest comes from dissatisfaction with other options: “The level of attention is

Peter Gervai
Peter Gervai

inversely proportional to the negativity that other models seem to attract, as publishers see they are loosing value in the more predominant waterfall system, and other competitive systems, that seem to favor one provider over others.”

But the biggest obstacle to the adoption of header bidding may be quite simple: it’s confusing. Juan Jose Nuñez, founder and CEO of Vertical3 Media, believes that publishers in the U.S. Hispanic and Latin American markets are not taking advantage of header bidding’s many benefits due to a “lack of deep knowledge” about programmatic. He continues: “This puts publishers in a very delicate situation because they are seeing how gradually their inventory generates less income and some are considering whether to continue betting big on the model of content generation and news given the lack of advertising revenue.”

On the other hand, Gustavo Landivar, Director Digital Platforms at Unidad Editorial, says that his company has not been pushing header bidding to clients, claiming that not all of his clients want that premium space, despite the fact that it generates more revenue.

Will Publishers Adopt Programmatic Thanks to Header Bidding?

The general sense is that header bidding offers great benefits for

Juan Jose Nuñez
Juan Jose Nuñez

those that, as Vertical3 Media, Juan Jose Nuñez says, want to have “greater control over their inventory and receive  higher revenue by changing the typical approach of cascade monetization by that of header bidding.” But how can publishers come to understand online inventory management and programmatic income generation well enough to make use of header bidding’s benefits?

AppNexus’ Gervai sees no easy solution, as the industry is simply moving so fast, that “it’s hard to keep up…Not with the ideas and concepts, but with implementing the ideas and concepts. So despite understanding and enthusiasm even, we have seen very little in terms of actual use.” Even after talking publishers through the pros and cons of header bidding and dispelling fears about latency issues, there is resistance to the unfamiliar: Having the knowledge, the right concept, the right support seems to be insufficient when you face the ‘great inertia.'”

Publishers,especially those pure players that rely more on indirect revenues, are starting to understand the benefits of header bidding.

Google Double Click: A Game Changer?

Ivan Adaime
Ivan Adaime

Ivan Adaime, VP of Digital at Impremedia, echoes the general sentiment that header bidding is not seeing widespread use in Latin America and the U.S. Hispanic market. But he claims that publishers – and especially those “pure players” that “rely more on indirect revenues” – are starting to understand its benefits. He signaled that most are using Google’s Double Click and Ad Exchange, and that the upcoming launch of Double Click’s First Look will be “nothing more than their answer to header bidding.”

How Important is Transparency?

How transparent is the relationship between publishers and buyers? It depends on whom you speak to. Batanga’s Borges says that one of the most appealing aspects of header bidding is that it would increase transparency. “Header bidding allows publishers to have more flexibility and a more streamlined, direct relationships with buyers,” she claims.

But Adaime cautions the industry not to overestimate header bidding’s influence on the adoption of programmatic, as he believes that header bidding essentially “gives publishers using Google’s DFP and Ad Exchange a bit more transparency on the bids that they receive for their inventory​, especially for the lower tiers of CPM,” but that if we are talking about private exchanges or private deals when we say programmatic, header bidding won’t have as much of an impact, since those activities are “already pretty transparent, and at the top of the typical waterfall setups of the ad servers.”

Only time will tell how the region (and the world) adapts to the many alternatives available to the industry. Programmatic advertising is still new, and probably too complex. In the meantime, no one can blame publishers for resisting something complicated enough to make anyone’s head spin.

What: Microsoft will be increasing its use of AppNexus’ publisher suite for programmed ads, expanding from 39 to 58 global markets, many in LatAm. Microsoft Advertising, which used to have a relatively big panregional sales presence out of Fort Lauderdale, FL, will be outsourcing direct sales to Medula Networks, except in Brasil, where they are handled by AOL, and Mexico (Prodigy-MSN).
Why it matters: The announcement means Microsoft is exiting the Latin American market from an ad-sales perspective.

EfWdfyI3_400x400 zAoSLQcc_400x400Through the expansion of the programmatic deal between Microsoft and AppNexus, the latter will become Microsoft’s exclusive technology and programmatic sales partner in Bolivia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Paraguay, Uruguay, and Venezuela. AppNexus will exclusively represent and be the ad tech platform (programmatic) for Microsoft display and Microsoft app-based ad inventory on MSN, Outlook, Skype, and Xbox, as well as third-party Windows, Windows phone, and Xbox apps inventory within these markets. Direct Sales, panregionally and in all local markets but in Brazil and Mexico (Prodigy/MSN), will be taken over by Medula Networks. Microsoft Advertising’s panregional sales team will be dismantled. AppNexus will work with Medula Networks local sales units to direct Microsoft ad inventory in Argentina, Chile, Colombia, Ecuador, Peru and panregionally out of Miami.

AppNexus bought Real Media Latin America as a part of its Latin American expansion effort in June of this year.

Microsoft Advertisings panregional direct sales team out of Fort Lauderdale will be dismantled.

Expansion of Programmatic Deal to the rest of LatAm

In July, Microsoft Advertising announced that it will outsource its direct advertising sales to Verizon/AOL in most major global markets, including Brazil, and use direct sales and AppNexus in Spanish-speaking Latin America. The latest announcement expands the amount of Latin American countries where AppNexus will be selling programmatically and puts an end to Microsoft Advertising’s direct sales efforts in Latin America. Microsoft Advertising’s pan regional direct sales team out of Fort Lauderdale, FL, will be dismantled.

What: Microsoft Advertising will continue to sell its properties via direct sales efforts and its partnership with AppNexus in Spanish-speaking Latin America, a spokeswoman at Microsoft Advertising tells Portada. For the Brazilian market, as well as another 9 major markets, AOL, which was recently bought by Verizon, will take over sales efforts from Microsoft Advertising’s Sales Team.
Why it matters: Spanish-speaking Latin America will be treated differently than many major markets, including Brazil, where Verizon-owned AOL will start managing and selling Microsoft’s display advertising inventory across several platforms including MSN, Outlook.com and Skype following a 10-year search-and-advertising partnership. The deal includes all major markets, including the US (U.S. Hispanic), the UK, Canada, France, Germany, Spain, Japan, Italy and Brazil, which stand for more than 60% of Microsoft’s ad revenue.

EfWdfyI3_400x400 R2CkTs2S_400x400Thanks to a 10-year search-and-advertising partnership, AOL  recently acquired by Verizon, will start managing and selling Microsoft’s display advertising inventory across several platforms including MSN, Outlook.com and Skype.

Around 1,200 Microsoft employees will get offer letters from AOL, most of them in ad sales, under the deal. In addition, AOL will end its search distribution relationship with Google in order to accept Bing, Microsoft’s web search engine unveiled in 2009, on all its mobile and desktop properties – giving Microsoft an additional 1-2% of search market share carved directly from Google’s lunch. That part of the partnership kicks off in January 2016.

Following this deal, AOL will be responsible for all of Microsoft’s entire media portfolio including display, mobile and video advertising on MSN, Windows, Outlook.com, Skype and Xbox and in nine markets including the US, the UK, Canada, France, Germany, Spain, Japan, Italy and Brazil, which stands for more than 60% of Microsoft’s ad revenue.For the next ten largest markets, many of them in Western Europe, Microsoft says it will go “all in” on programmatic through its key ad tech partner, AppNexus. Nearly all media supply Microsoft controls in those countries will become traded programmatically, not merely the remnant portions.

Spanish-speaking Latin America

MSFT_ADVSources at Microsoft’s headquarters for Latin America and the Caribbean in Ft. Lauderdale, tell Portada that for the Spanish-speaking Latin America targeted Sales Team “there will not be changes.” “We will continue to offer our inventory through our sales team, with the same level of commitment and quality. We will also continue with our partnership with AppNexus for programmatic sales via Microsoft Advertising Exchange. AppNexus will continue to be our partner for programmatic sales on a worldwide basis.

We will continue to offer our inventory through our sales team.

Microsoft’s deal-making process estimated AOL could receive between 20% and 30% of ad revenues generated by sales of Microsoft inventory.For AOL, which was recently purchased by Verizon in a US$4.4 billion deal ,the deal represents an opportunity to increase its digital advertising clout at a time when considerable power is accruing to Google and Facebook.

AppNexus Partnership

AppNexus, a major DSP, demand side platform, and Microsoft’s key ad tech partner until now and a company in which it holds significant equity via a 2010 investment, will remain the technology platform in the top nine markets where AOL has taken the rein, as well as in Latin America including Brazil, which means its position is secured for the time being.
Even though AOL offers a sell-side platform of its own, it’s unclear whether it has the technology chops to process the high volume of bid activity that Microsoft’s inventory brings in. AppNexus and Microsoft issued a press release to announce a “multi-year” extension of their technology agreement, to avoid any misunderstanding. AppNexus traffics Microsoft inventory in 39 markets.

Microsoft also confirmed that it will no longer collect its own map data but will continue to offer Bing Maps.Microsoft will similarly sell some of its technology to the ride-sharing company and 100 workers will transition to Uber. No finances regarding the deal were disclosed.

Check out the Sept. 2014 Portada Interview with Frank Holland, Corporate VP Microsoft Advertising & Online (Spanish).

What: Verizon-owned AOL will start managing and selling Microsoft‘s display advertising inventory across several platforms including MSN, Outlook.com and Skype following a 10-year search-and-advertising partnership. The deal includes all major markets, including the US (U.S. Hispanic), the UK, Canada, France, Germany, Spain, Japan, Italy and Brazil, which stands for more than 60% of Microsoft’s ad revenue.For the next ten largest markets, many of them in Western Europe, Microsoft says it will go “all in” on programmatic through its key ad tech partner, AppNexus.. In addition, AOL will end its search distribution relationship with Google in order to accept Bing,
Why it matters: While Microsoft wants to stay in the content business including the MSN properties, it wants to outsource the monetization of that content to third parties.

EfWdfyI3_400x400 R2CkTs2S_400x400Thanks to 10-year search-and-advertising partnership, Verizon-owned AOL will start managing and selling Microsoft‘s display advertising inventory across several platforms including MSN, Outlook.com and Skype.

Around 1,200 Microsoft employees will get offer letters from AOL, most of them in ad sales, under the deal.In addition, AOL will end its search distribution relationship with Google in order to accept Bing, Microsoft’s web search engine unveiled in 2009, on all its mobile and desktop properties – giving Microsoft an additional 1-2% of search market share carved directly from Google’s lunch. That part of the partnership kicks off in January 2016.

Following this deal, AOL will be responsible for all of Microsoft’s entire media portfolio including display, mobile and video advertising on MSN, Windows, Outlook.com, Skype and Xbox and in nine markets including the US, the UK, Canada, France, Germany, Spain, Japan, Italy and Brazil, which stands for more than 60% of Microsoft’s ad revenue.For the next ten largest markets, many of them in Western Europe, Microsoft says it will go “all in” on programmatic through its key ad tech partner, AppNexus. Nearly all media supply Microsoft controls in those countries will become traded programmatically, not merely the remnant portions.

For the next ten largest markets, many of them in Western Europe, Microsoft says it will go “all in” on programmatic through its key ad tech partner, AppNexus.

Microsoft’s deal-making process estimated AOL could receive between 20% and 30% of ad revenues generated by sales of Microsoft inventory.For AOL, which was recently purchased by Verizon in a US$4.4 billion deal ,the deal represents an opportunity to increase its digital advertising clout at a time when considerable power is accruing to Google and Facebook.

“We believe this is a scale play to become another alternative to our competitors,” said AOL president Bob Lord. “A lot of this deal is frankly getting to the younger demo, and not just programmatic platform offerings but also programmatic content offerings. That’s what they’re asking for: not just a campaign platform but a content platform.”
Microsoft has also confirmed that it will no longer collect its own map data but will continue to offer Bing Maps.Microsoft will similarly sell some of its technology to the ride-sharing company and 100 workers will transition to Uber. No finances regarding the deal were disclosed.

Microsoft’s key ad tech partner:AppNexus

AppNexus, Microsoft’s key ad tech partner until now and a company in which it holds significant equity via a 2010 investment, will remain the technology platform in the top nine markets where AOL has taken the rein,which means its position is secured for the time being.
Even though AOL offers a sell-side platform of its own, it’s unclear whether it has the technology chops to process the high volume of bid activity that Microsoft’s inventory brings in.AppNexus and Microsoft issued a press release to announce a “multi-year” extension of their technology agreement, to avoid any misunderstanding. AppNexus traffics Microsoft inventory in 39 markets.

“From our side we don’t think we have an unprofitable sales force. We’ve run our business pretty efficiently,” said Rik van der Kooi, corporate VP at Microsoft and the most senior executive in charge of Microsoft’s ad platforms business.”Irrespective of any deal, the move towards programmatic allows us to reexamine [how we structure our media sales]. It’s a focus on the opportunity we have.”

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What: Ad-tech company AppNexus has acquired its fifth company within a year: RealMedia Latin America (RMLA).
Why it matters: Major players in the Ad-Tech World are taking positions in the expanding Latin American market, where programmatic is growing rapidly, albeit from a low base. Other companies that recently have expanded into the region include Gravity4 and MediaMath.

1895fa51b3059e8c6d6bd86b2ecabb75_reasonably_smallAd tech company AppNexus has acquired its fifth company within a year: RealMedia Latin America (RMLA).The acquisition gives AppNexus a strong foothold in the continent to continue expanding. The transaction,which is subject to customary closing conditions, is expected to close in the third quarter.
Founded in 2002,São Paulo, Brazil, -based RMLA offers marketing and technology solutions to online advertisers and publishers. Currently, the company has operations in Mexico, Argentina and Chile and brings a strong roster of Spanish-language and Portuguese-language publishers.

How MediaMath, MEC and Clarin See Programmatic Advancing in Latin America

In March, AppNexus acquired rival firm Yieldex for US$100m and cross-device technology firm MediaGlu last December. Three months before that, the Company received US$25m in funding from WPP, and acquired the Open AdStream (OAS) ad serving platform from Xaxis audience profiling and targeting division.

The acquisition of RMLA extends our physical footprint to key locations in the region and positions us to create an independent powerhouse in a fast-growing part of the programmatic market.

cP8HNPvp_400x400‘AppNexus already has a strong commercial presence in Latin America. The acquisition of RMLA extends our physical footprint to key locations in the region and positions us to create an independent powerhouse in a fast-growing part of the programmatic market. Latin American buyers and sellers of online advertising need a state-of-the art technology platform if they’re to build strong, independent businesses that can compete locally and globally. AppNexus is thrilled to join forces with RMLA and its outstanding team to bring our offerings to companies across Latin America,’said Michael Rubenstein, President of AppNexus (photo).

AppNexus Programmable Bidder

To be in tune with product development, also announced the launch of AppNexus Programmable Bidder (APB), which enables advertisers and agencies to upload their proprietary algorithms directly to the AppNexus open platform and test and refine their own algorithmic strategies to optimize campaign outcomes, using a new language called Bonsai which the company says is similar to the established language Python. Company CEO and co-founder Brian O’Kelley (pictured below) said of the launch:

OSzNk11p_400x400‘Our underlying thesis is that open beats closed. We don’t just allow – we invite – the most innovative technology companies to build their tech on top of ours. It means that buyers can fashion campaigns that deliver the right message to the right audience, without turning their data over to a black box,’ said company CEO and co-founder Brian O’Kelley of the launch.

AppNexus has also joined comScore’s online ad quality effort Trust Initiative, which was launched in the US in January and Canada in April.Trust Initiative allows media buyers to use the firm’s ad metrics when planning and buying programmatically, and sellers to gain insight into how their properties are represented in programmatic platforms. Headquartered in New York City with 23 global offices, AppNexus employs a staff of more than 900 employees.

What: Ad technology company AppNexus has closed a US $60 million investment round from a Boston equity and asset management firm, valuing the company at about US $1.2 billion, while expecting US $40 million in additional financing from other investors.
Why it matters:  The equity financing will give AppNexus the cash it needs for future M&A, boost engineering talent and further global expansion, in addition to being under less pressure to raise capital through the public markets.

descargaAd technology company AppNexus has closed a US $60 million investment round from a Boston public equity and asset management firm, valuing the company at about US $1.2 billion. The company also expects up to US $40 million in additional financing to follow from “other interested parties” in the coming months reaching a total of US $100 million. AppNexus powers many open and private ad-exchanges including some in Hispanic and Latin American markets (e.g. Orange’s private ad-exchange)

According to current co-founder and CEO Brian O’Kelley, although the company did not necessarily require further investment, having raised US $75 million in January 2013, the public equity financing will give AppNexus the cash it needs for future M&A, boost engineering talent and further global expansion. This additional funding also means AppNexus is under less pressure to raise capital through the public markets.

the public equity financing will give AppNexus the cash it needs for future M&A, boost engineering talent and further global expansion
 

descarga (1)Mr. O’Kelley explained that AppNexus will not rush to follow other advertising companies’ footsteps with an IPO of its own now, boy possibly next year. To him, there is little incentive to go public other than liquidity for investors and employees. He wants AppNexus to go public when investors understand more about what it does and where it fits into the complicated online ad ecosystem.“On one side, Q2 was our first-ever profitable quarter. We truly didn’t need money and we still had about half of the money we raised last year in the bank, but if you think about the difference between having a lot of money and not needing money, there’s definitely a difference in those two scenarios. And because these are public investors, it would be a validation of the value of our equity and we could use that as currency to go be acquisitive. It lets us get the benefits of being public without the overhead of being public,” O’Kelley said.

In the past two years a handful of online advertising companies have held initial public offerings of their own, but have subsequently performed poorly. Programmatic ad network Rocket Fuel has seen its stock price dip 73% since January, for example. YuMe is off 38%; Tremor Video, 46%; and Millennial Media, 66%. Rubicon Project is down 27% from its $15 initial-public-offering price in April. (WSJ owner News Corp has a 13.7% stake in Rubicon).

O’Kelley suggested also, that the market was not a factor into the company’s decision to raise its most recent round of funding “We did this financing after one of the worst quarters in the public markets ever for ad tech, which of course has been really painful and so the fact that an active public investor would value us at US$1.2 billion gives you a good sense of the amount of confidence they have in our business and what we’re doing. It feels important.”

 “We did this financing after one of the worst quarters in the public markets ever for ad tech”
 

Appnexus primary goal with following the investment is to have enough capital to compete with some of these public companies and create a real currency to do M&A with. The company didn’t disclose names of investors.

Global expansion

According to a press release, the company is planning to use the new cash to “continue the rapid expansion of its global team and to invest in creating innovations that will transform digital advertising.”

In June, AppNexus acquired Parisian ad viewability firm Alenty, which could definitely help the company become a bigger player in the ad tech sector.

“Right now it’s a pretty hot M&A market and there are a lot of companies who are sort of trying to find a way in. We’re going to be pretty price-sensitive on anything we do but we’re interested in the idea of finding good teams and technology. To the extent that there’s folks out there with really, really strong tech and really strong people, we will certainly talk but I think it’s more about that than trying to buy revenue or buy customers, ” said O’Kelley.

Last Year AppNexus partnered with Milennial Media, a mobile ad network and service provider to create mobile Ad-Exchange  Milennial Exchange.

What: Ad technology company AppNexus has closed a US $60 million investment round from a Boston equity and asset management firm, valuing the company at about US $1.2 billion, while expecting US $40 million in additional financing from other investors.
Why it matters:  The equity financing will give AppNexus the cash it needs for future M&A, boost engineering talent and further global expansion, in addition to being under less pressure to raise capital through the public markets.

descargaAd technology company AppNexus has closed a US $60 million investment round from a Boston public equity and asset management firm, valuing the company at about US $1.2 billion. The company also expects up to US $40 million in additional financing to follow from “other interested parties” in the coming months reaching a total of US $100 million. AppNexus powers many open and private ad-exchanges including some in Hispanic and Latin American markets (e.g. Orange’s private ad-exchange)

According to current co-founder and CEO Brian O’Kelley, although the company did not necessarily require further investment, having raised US $75 million in January 2013, the public equity financing will give AppNexus the cash it needs for future M&A, boost engineering talent and further global expansion. This additional funding also means AppNexus is under less pressure to raise capital through the public markets.

the public equity financing will give AppNexus the cash it needs for future M&A, boost engineering talent and further global expansion
 

descarga (1)Mr. O’Kelley explained that AppNexus will not rush to follow other advertising companies’ footsteps with an IPO of its own now, boy possibly next year. To him, there is little incentive to go public other than liquidity for investors and employees. He wants AppNexus to go public when investors understand more about what it does and where it fits into the complicated online ad ecosystem.“On one side, Q2 was our first-ever profitable quarter. We truly didn’t need money and we still had about half of the money we raised last year in the bank, but if you think about the difference between having a lot of money and not needing money, there’s definitely a difference in those two scenarios. And because these are public investors, it would be a validation of the value of our equity and we could use that as currency to go be acquisitive. It lets us get the benefits of being public without the overhead of being public,” O’Kelley said.

In the past two years a handful of online advertising companies have held initial public offerings of their own, but have subsequently performed poorly. Programmatic ad network Rocket Fuel has seen its stock price dip 73% since January, for example. YuMe is off 38%; Tremor Video, 46%; and Millennial Media, 66%. Rubicon Project is down 27% from its $15 initial-public-offering price in April. (WSJ owner News Corp has a 13.7% stake in Rubicon).

O’Kelley suggested also, that the market was not a factor into the company’s decision to raise its most recent round of funding “We did this financing after one of the worst quarters in the public markets ever for ad tech, which of course has been really painful and so the fact that an active public investor would value us at US$1.2 billion gives you a good sense of the amount of confidence they have in our business and what we’re doing. It feels important.”

 “We did this financing after one of the worst quarters in the public markets ever for ad tech”
 

Appnexus primary goal with following the investment is to have enough capital to compete with some of these public companies and create a real currency to do M&A with. The company didn’t disclose names of investors.

Global expansion

According to a press release, the company is planning to use the new cash to “continue the rapid expansion of its global team and to invest in creating innovations that will transform digital advertising.”

In June, AppNexus acquired Parisian ad viewability firm Alenty, which could definitely help the company become a bigger player in the ad tech sector.

“Right now it’s a pretty hot M&A market and there are a lot of companies who are sort of trying to find a way in. We’re going to be pretty price-sensitive on anything we do but we’re interested in the idea of finding good teams and technology. To the extent that there’s folks out there with really, really strong tech and really strong people, we will certainly talk but I think it’s more about that than trying to buy revenue or buy customers, ” said O’Kelley.

Last Year AppNexus partnered with Milennial Media, a mobile ad network and service provider to create mobile Ad-Exchange  Milennial Exchange.

What: Technology company AppNexus has announced a new partnership with mobile leader Shazam and the evolution of its partnership with Millennial Media.
Why it matters: As Its mobile business has grown more than 500 percent in the last year, based on ad spendAppNexus aims to consolidate its programmatic mobile inventory. To make this happen it needs the help from supply partners like Millenial Media and now Shazam, to deliver that inventory.

descargaAppNexus, the technology company that provides trading solutions and powers marketplaces for Internet advertising, is growing stronger in mobile. The company has announced a new partnership with mobile leader Shazam and the new developments in its partnership with Millennial Media during its second European Summit.

“AppNexus is a mobile company,” said AppNexus Chief Executive, Brian O’Kelley.”We have a long history in desktop and are still deeply committed to that medium, but mobile is where the industry is heading and we’ve placed a huge bet on that opportunity. Partnering with Millennial Media and Shazam validates us as the clear frontrunner in programmatic mobile, and the incredible increase in mobile volume and ad spend on our platform are further proof points.”

Today AppNexus is one of the largest source of programmatic mobile inventory.  Its mobile business has grown more than 500 percent in the last year, based on ad spend. 
 

The number of mobile-sized ads and campaigns targeted to mobile supply in the system has grown 10 times over in the last year, with 65,000 campaigns currently running through AppNexus, Magna Global reports. According to this study , 68% of mobile display was traded programmatically and it is estimated to rise to 88% by 2017.

To deliver premium high-quality mobile inventory to buyers Appnexus needs to work with supply partners such as Millenial Media and Shazam.

Millennial Media Exchange, a mobile exchange powered by the AppNexus platform, was launched in 2013.Its’ Executive Vice President, Global Sales & Operations, Mollie Spillman said: “We are very optimistic about the growth opportunity of the programmatic mobile market in EMEA. Our market research shows that EMEA provides a massive opportunity for our two companies to unlock demand in the region at an automated scale that no one can provide in the market today.”

Shazam, one of the world’s most-downloaded apps and a mobile-first premium publisher, is now leveraging AppNexus’s yield management and ad quality tools for monetization, brand protection and preventing channel conflict. This App is also purchasing through the AppNexus platform using first and third-party data segments for targeting.

“AppNexus has given Shazam the flexibility to manage our existing preferred partnerships with its industry-leading inventory controls and seamless integration with data providers, as well as work with new buyers who want to take advantage of our premium supply, ” said Shazam Senior Vice President, International Advertising Sales, Miles Lewis.

What: Technology company AppNexus has announced a new partnership with mobile leader Shazam and the evolution of its partnership with Millennial Media.
Why it matters: As Its mobile business has grown more than 500 percent in the last year, based on ad spendAppNexus aims to consolidate its programmatic mobile inventory. To make this happen it needs the help from supply partners like Millenial Media and now Shazam, to deliver that inventory.

descargaAppNexus, the technology company that provides trading solutions and powers marketplaces for Internet advertising, is growing stronger in mobile. The company has announced a new partnership with mobile leader Shazam and the new developments in its partnership with Millennial Media during its second European Summit.

“AppNexus is a mobile company,” said AppNexus Chief Executive, Brian O’Kelley.”We have a long history in desktop and are still deeply committed to that medium, but mobile is where the industry is heading and we’ve placed a huge bet on that opportunity. Partnering with Millennial Media and Shazam validates us as the clear frontrunner in programmatic mobile, and the incredible increase in mobile volume and ad spend on our platform are further proof points.”

Today AppNexus is one of the largest source of programmatic mobile inventory.  Its mobile business has grown more than 500 percent in the last year, based on ad spend. 
 

The number of mobile-sized ads and campaigns targeted to mobile supply in the system has grown 10 times over in the last year, with 65,000 campaigns currently running through AppNexus, Magna Global reports. According to this study , 68% of mobile display was traded programmatically and it is estimated to rise to 88% by 2017.

To deliver premium high-quality mobile inventory to buyers Appnexus needs to work with supply partners such as Millenial Media and Shazam.

Millennial Media Exchange, a mobile exchange powered by the AppNexus platform, was launched in 2013.Its’ Executive Vice President, Global Sales & Operations, Mollie Spillman said: “We are very optimistic about the growth opportunity of the programmatic mobile market in EMEA. Our market research shows that EMEA provides a massive opportunity for our two companies to unlock demand in the region at an automated scale that no one can provide in the market today.”

Shazam, one of the world’s most-downloaded apps and a mobile-first premium publisher, is now leveraging AppNexus’s yield management and ad quality tools for monetization, brand protection and preventing channel conflict. This App is also purchasing through the AppNexus platform using first and third-party data segments for targeting.

“AppNexus has given Shazam the flexibility to manage our existing preferred partnerships with its industry-leading inventory controls and seamless integration with data providers, as well as work with new buyers who want to take advantage of our premium supply, ” said Shazam Senior Vice President, International Advertising Sales, Miles Lewis.

What: AppNexus, is now after direct deal and to support this other side of digital advertising,the company is releasing a new software called Twixt.
Why it matters: Twixt will simplify and automatize much of the manual work , by streaming  prior negotiations to the execution of a digital ad buy.

appnexusAppNexus, the programmatic ad platform, is planning to go after the other side of digital advertising: the direct deal, Ad Age reports. To do so, the company has released a new software called  Twixt, which is aimed to streamline negotiations that occur over email and phone and later  processed with Excel and Word, prior to the execution of a digital ad buy.

Twixt was created to simplify and automatize much of the manual work out. Using this software, a buyer can send out RFPs out to a list of sellers, gather and compare their responses, negotiate line items, and agree terms with publishers. Publishers, on the other hand, can click a link in an email they get when a buyer sends them an RFP through Twixt, access the system, fill out their response and send it back to the buyer. A further benefit for publishers is that the system also stores information such as ad specs and past proposal responses. In few words, the whole process is conducted within a single system.

So far , the new software is free. However, AppNexus could connect it to ad servers and take a percentage of money spent through it, like many ad-tech ecosystems does today to make profits.

The company has appointed a new Chief Financial Officer, to make a decision between seeking another round of funding or going public. To date, the company has raised US $140.5 including its most recent round, US $75 million, coming in January 2013.

According to Ad Age, ¨ Automating direct deals brings AppNexus into competition with Centro, which has negotiation functionality within its system. Centro made a move into AppNexus’ territory in November, when it acquired SiteScout, a DSP.¨

“Right now, you’re looking at a bunch of human beings wasting their time doing operational process that could be automated. If we can take that inefficiency out of the system, we’re unleashing billions of dollars of value,” said Andy Atherton, senior VP at AppNexus.”The broad goal of the initiative is to empower buyers and sellers and take inefficiency out of the process,” added Mr. Atherton.

 

 

What: Batanga Media is introducing a private ad exchange for the U.S. Hispanic market.  Batanga Media Exchange (BMX) will be based on programmatic trading and give access to key client and agency partners. The exchange will trade desktop display and video as well as mobile ad units.  A similar exchange for Latin America is in the works.
Why it matters: An increasing amount of publishers is restricting access to premium inventory by creating private ad exchanges.  Those that can combine their own substantial  inventory with a select network of third-party publishers, like Batanga Media,  have more chances to succeed.

Batanga Media is introducing a new programmatic private exchange, named Batanga Media Exchange (BMX). The new BMX private exchange was developed to run on a programmatic platform and comprises  Hispanic web and mobile properties, including Batanga.com, iMujer.com, Batanga Radio App and the iMujer Gourmet App, as well as inventory from select premium Hispanic content publishing partners. “Announcements about additional premium publishers will be coming shortly, however we can say that our existing network publishers are part of BMX,” Rafael Urbina, CEO of Batanga Media tells Portada.  Hector Brignone, Vice President Ad Operations will run BMX.

BMX will utilize proprietary data and intelligence to identify and deliver a qualified, automated U.S. Hispanic audience in real-time.
Data collection and refinement are key to BMX, Urbina notes:.”We are generating behavioral and demographic clusters based on our first party-data,” he says.

As BMX is a private exchange, client (agencies and brand marketers) access to BMX will be approved on a case by case basis. Through private exchanges publishers and online ad networks can control buyer access to private inventory. Accepted buyers will be able access BMX  inventory programmatically through the AppNexus platform or by establishing a connection to BMX directly. The exchange is based on programmatic trading. “BMX is a programmatic product, but we offer managed services for buyers that are not 100%prepared to do RTB. Additionally, we will be rolling out programmatic-reserved inventory for premium guaranteed buys”, Urbina notes. Programmatic digital advertising trading is growing in leaps and bounds, particularly in the general market.  Analysts claim that in the Hispanic market there is still some catch-up potential for programmatic trading.  Urbina predicts that at a normalized level Hispanic will be similar to the general market: “I believe that over half of all ads will be bought this way in the not too distant future.”

I believe that over half of all Hispanic ads will be bought via programmatic in the not too distant future.

Mobile and Video

ALEMANIA TECNOLOGÍADisplay mobile units will be available through the BMX exchange. Exchanges do have more difficulty to capture mobile advertising data. As Urbina says, “within mobile the real challenge is to obtain third-party data. However, we do have plenty of first-party data to draw from.” BMX will also have desktop video advertising inventory available. Online video is growing at a very high rate in the Hispanic market and general market. According to Urbina, ” Growth for overall video is higher than display, but lower than mobile. CPMs are significantly higher for video.”

An increasing amount of media properties are creating private exchanges (e.g. see NewCorp) as a way to organize their  ad sales and only give key clients access to their premium inventory. Because of the high demand for public ad exchanges Supply side platform Pubmatic recently announced that it will hire 100 additional staffers to meet its clients growing demand for private ad exchanges. Last year Orange Advertising Network introduced a private exchange for the U.S. Hispanic market.

 

Foto Alberto PardoPortada interviewed Alberto Pardo, CEO of AdsMovil, about the company’s status after its agreement with Millennial Media and the creation of Millennial Media Exchange (MMX), following Millenial Media’s partnership with AppNexus. Pardo also talked to us about the state of mobile advertising in Latin America, particularly in Mexico.

Translated by Candice Carmel

Portada: What is your business arrangement with Millennial Media?

Alberto Pardo: Adsmovil has a strategic alliance with Millennial Media to market their inventory, coupled with their technology support, in all countries of Latin America.

Portada: What does each side bring to the table?

Alberto Pardo: Millennial brings six years of experience in the most developed mobile industry in the world, along with its inventory, agreements with its own publishers, and technology. We bring our local knowledge and sales in each country [in the region].

Portada: Which brands are you bringing these advertising solutions to in Latin America?

Alberto Pardo: Mainly large advertisers such as Coca Cola, Ford, Nestlé, and Unilever, to name a few.

Portada: And in Mexico?

Alberto Pardo: Interjet, Nestlé, Banamex, General Motors, and Nokia, to name a few.

Portada: What is the state of mobile advertising development in Latin America, and in Mexico in particular?

Alberto Pardo: It is currently in full growth. 2013 has been a defining year for the industry, as several brands are starting to see mobile as an essential communications tool. Mexico is the most developed market in Latin America, ahead of Brazil and Argentina. In Mexico, there is wide acceptance of our products and we will continue to invest very strongly there, because Mexico is, without a doubt, the largest market in the region.

Mexico is the most developed market in LatAm for mobile advertising. More than Brazil and Argentina.

Portada: How does the U.S. Hispanic market compare? Or are they completely different markets?

Alberto Pardo: They are very different markets, as [overall] smartphone penetration in the United States is 60% – and 49% among Hispanics – whereas in Mexico, the figure is 30-32%. Data consumption and smartphone use varies greatly between the U.S. and Latin America, because in the United States, mobiles are also used to make purchases, while in Latin America everything related to m-commerce is very recent and still in its infancy.

The U.S. Hispanic and LatAm mobile markets are very different

Portada: What strategies do you recommended for creating pan-regional mobile advertising campaigns?

Alberto Pardo: Although one has to think regionally when creating pan-regional campaigns, communications should be adapted to each market, taking into account each country’s peculiarities.

Portada: What are Adsmovil’s plans for 2014?

Alberto Pardo: In 2014, we want to consolidate [our foothold] in Mexico, Brazil, and the United States.

On the agreement between Millennial Media and AppNexus, and the creation of the Millennial Media Exchange (MMX):

Portada: How will AdsMovil’s inventory in Latin America be represented in the new ad network?

Alberto Pardo: Our inventory will be represented in the form of audiences, using our coverage in the region.

Portada:  In what USH ad-exchanges is Adsmovil’ inventory represented?

Alberto Pardo: None. The Adsmovil inventory in the U.S. Hispanic market is premium, and premium companies usually put their unsold inventory “blind” on exchanges. Adsmovil is 100% transparent and sells only premium inventory in the U.S. Hispanic market.

Portada: How important are ad exchanges for AdsMovil sales?

Alberto Pardo: Very important, since much of our inventory in Latin America is received through exchanges.

Portada: There are still many barriers in the development of mobile advertising ad exchanges (standardization, etc.). How do you see this changing in time?

Alberto Pardo: There are many barriers. The main one is publishers’ lack of knowledge in this area, and the other is the short supply of exchanges in the region. Surely this will change as the business develops and continues to grow. Personally, I feel that publishers continue to think in terms of online, rather than mobile. The same holds true for many brands, which still view mobile as an emerging medium. This trend will be reversed in the coming years, since brands are starting to venture into mobile, albeit still slowly.

Personally, I feel that publishers continue to think in terms of online, rather than mobile

Portada: Did anything change or will anything change with the arrival of Victor Kong at Adsmovil?

Alberto Pardo: Victor is a great support to Adsmovil today. He leads Cisneros Interactive, the corporate business unit that groups all digital initiatives of the Cisneros Group focusing on Digital Advertising and Electronic Commerce. Adsmovil is part of Cisneros Interactive, and is an independent company that counts the Cisneros Group among its shareholders. As President of Cisneros Interactive, Victor is channeling all of his efforts and knowledge into growing the digital business-related companies owned by the group.

Alberto Pardo has 15 years of experience in the Internet, Internet marketing, e-commerce and online advertising fields. He is the founder and Chief Executive Officer (CEO) of AdsMovil, a Latin America and the U.S. Hispanic market mobile advertising network owned by Cisneros Interactive. Pardo is also founder and current President of the Colombia Chamber of Electronic Commerce.

Foto Alberto PardoPortada interviewed Alberto Pardo, CEO of AdsMovil, about the company’s status after its agreement with Millennial Media and the creation of Millennial Media Exchange (MMX), following Millenial Media’s partnership with AppNexus.

Translated by Candice Carmel

Portada: What is your business arrangement with Millennial Media?

Alberto Pardo: Adsmovil has a strategic alliance with Millennial Media to market their inventory, coupled with their technology support, in all countries of Latin America.

Portada: What does each side bring to the table?

Alberto Pardo: Millennial brings six years of experience in the most developed mobile industry in the world, along with its inventory, agreements with its own publishers, and technology. We bring our local knowledge and sales in each country [in the region].

On the agreement between Millennial Media and AppNexus, and the creation of the Millennial Media Exchange (MMX):

Portada: How will AdsMovil’s inventory in Latin America be represented in the new ad network?

Alberto Pardo: Our inventory will be represented in the form of audiences, using our coverage in the region.

Portada:  In what USH ad-exchanges is Adsmovil’ inventory represented?

Alberto Pardo: None. The Adsmovil inventory in the U.S. Hispanic market is premium, and premium companies usually put their unsold inventory “blind” on exchanges. Adsmovil is 100% transparent and sells only premium inventory in the U.S. Hispanic market.

Portada: There are still many barriers in the development of mobile advertising ad exchanges (standardization, etc.). How do you see this changing in time?

Alberto Pardo: There are many barriers. The main one is publishers’ lack of knowledge in this area, and the other is the short supply of exchanges in the region. Surely this will change as the business develops and continues to grow. Personally, I feel that publishers continue to think in terms of online, rather than mobile. The same holds true for many brands, which still view mobile as an emerging medium. This trend will be reversed in the coming years, since brands are starting to venture into mobile, albeit still slowly.

Personally, I feel that publishers continue to think in terms of online, rather than mobile

Latin America

Portada: Which brands are you bringing these advertising solutions to in Latin America?

Alberto Pardo: Mainly large advertisers such as Coca Cola, Ford, Nestlé, and Unilever, to name a few.

Portada: And in Mexico?

Alberto Pardo: Interjet, Nestlé, Banamex, General Motors, and Nokia, to name a few.

Portada: What is the state of mobile advertising development in Latin America, and in Mexico in particular?

Alberto Pardo: It is currently in full growth. 2013 has been a defining year for the industry, as several brands are starting to see mobile as an essential communications tool. Mexico is the most developed market in Latin America, ahead of Brazil and Argentina. In Mexico, there is wide acceptance of our products and we will continue to invest very strongly there, because Mexico is, without a doubt, the largest market in the region.

Mexico is the most developed market in LatAm for mobile advertising. More than Brazil and Argentina.

Portada: How does the U.S. Hispanic market compare? Or are they completely different markets?

Alberto Pardo: They are very different markets, as [overall] smart phone penetration in the United States is 60% – and 49% among Hispanics – whereas in Mexico, the figure is 30-32%. Data consumption and smart phone use varies greatly between the U.S. and Latin America, because in the United States, mobiles are also used to make purchases, while in Latin America everything related to m-commerce is very recent and still in its infancy.

The U.S. Hispanic and LatAm mobile markets are very different

Portada: What strategies do you recommended for creating pan-regional mobile advertising campaigns?

Alberto Pardo: Although one has to think regionally when creating pan-regional campaigns, communications should be adapted to each market, taking into account each country’s peculiarities.

Portada: What are Adsmovil’s plans for 2014?

Alberto Pardo: In 2014, we want to consolidate [our foothold] in Mexico, Brazil, and the United States.

Portada: How important are ad exchanges for AdsMovil sales?

Alberto Pardo: Very important, since much of our inventory in Latin America is received through exchanges.

Portada: Did anything change or will anything change with the arrival of Victor Kong at Adsmovil?

Alberto Pardo: Victor is a great support to Adsmovil today. He leads Cisneros Interactive, the corporate business unit that groups all digital initiatives of the Cisneros Group focusing on Digital Advertising and Electronic Commerce. Adsmovil is part of Cisneros Interactive, and is an independent company that counts the Cisneros Group among its shareholders. As President of Cisneros Interactive, Victor is channeling all of his efforts and knowledge into growing the digital business-related companies owned by the group.

Alberto Pardo has 15 years of experience in the Internet, Internet marketing, e-commerce and online advertising fields. He is the founder and Chief Executive Officer (CEO) of AdsMovil, a Latin America and the U.S. Hispanic market mobile advertising network owned by Cisneros Interactive. Pardo is also founder and current President of the Colombia Chamber of Electronic Commerce.

What: Millennial Media and AppNexus signed a strategic partnership to create a new premium mobile exchange called Millennial Media Exchange, or MMX.
Why is it important: This move represents the relevance of mobile marketplace for customers worldwide. Mobile strategies need to become more focused, smart and fast.

By means of a press release issued Tuesday, September 17, mobile ad network Millennial Media announced it had partnered with renowned New-York based ad-tech company AppNexus, and created Millennial Media Exchange (MMX), which is presented, as sources such as WSJ reported, as the world’s largest premium mobile advertising exchange.

The deal, as AdExchanger says, will lend AppNexus some much needed scale in the mobile arena, because until recently, its core business was traditional display advertising, although under the lead of CEO Brian O’Kelley it had already embraced a more aggressive approach regarding its mobile strategy.

Moreover, as Business Insider‘s Jim Edwards says, this move is a solid indicator that “the mobile ad-tech space is consolidating fast into a handful of big players” (Twitter, for instance, recently acquired mobile ad exchange MoPub). Thus, MMX will bring about a mobile marketplace that will surpass the one offered via Google. (As a matter of fact, Millenial recently partnered with Cisneros Adsmovil so as to extend its platform to Latin American markets).

AppNexus’ clients will have access to Millennial Media’s sales inventory and to the Jumptap’s real-time bidding, “programmatic” buying platform it recently acquired. Mollie Spilman, Millenial’s EVP and CMO, said that this strategic partnership will be a “catalyst” for bringing “programmatic to mobile in a premium and scalable way.”

In the end, the goal is to let clients move faster with mobile, and AppNexus, as Spilman says, will “enable all the buying and selling of mobile inventory that the market has been waiting for.” In other words, as Business Insider puts it, a huge array of buyers will be combined with a huge array of sellers.

Forbes reports that Millennial Media went public last year as a mobile ad network involved in direct sales of ad inventory on smartphones and tablets, and now the MMX partnership represents the company’s ongoing shift to bet on “programmatic” (automated) advertisement buying and selling on mobile. Although neither company expects to earn major revenue from the exchange until next year, they both hope that their partnership will encourage more spending on the quickly bought and sold programmatic ads we mainly see these days in the form of ads for gaming, dating and other types of mobile applications.

“When a large, premium advertising company and a leading technology provider come together, it accelerates the market into rapid expansion. Our partnership with Millennial Media will unlock their scale, high quality supply and unique data to ignite the mobile marketplace”, said Brian O’Kelley.

What: Millennial Media and AppNexus signed a strategic partnership to create a new premium mobile exchange called Millennial Media Exchange, or MMX.
Why is it important: This move represents the relevance of mobile marketplace for customers worldwide. Mobile strategies need to become more focused, smart and fast.

By means of a press release issued Tuesday, September 17, mobile ad network Millennial Media announced it had partnered with renowned New-York based ad-tech company AppNexus, and created Millennial Media Exchange (MMX), which is presented, as sources such as WSJ reported, as the world’s largest premium mobile advertising exchange.

The deal, as AdExchanger says, will lend AppNexus some much needed scale in the mobile arena, because until recently, its core business was traditional display advertising, although under the lead of CEO Brian O’Kelley it had already embraced a more aggressive approach regarding its mobile strategy.

Moreover, as Business Insider‘s Jim Edwards says, this move is a solid indicator that “the mobile ad-tech space is consolidating fast into a handful of big players” (Twitter, for instance, recently acquired mobile ad exchange MoPub). Thus, MMX will bring about a mobile marketplace that will surpass the one offered via Google. (As a matter of fact, Millenial recently partnered with Cisneros Adsmovil so as to extend its platform to Latin American markets).

AppNexus’ clients will have access to Millennial Media’s sales inventory and to the Jumptap’s real-time bidding, “programmatic” buying platform it recently acquired. Mollie Spilman, Millenial’s EVP and CMO, said that this strategic partnership will be a “catalyst” for bringing “programmatic to mobile in a premium and scalable way.”

In the end, the goal is to let clients move faster with mobile, and AppNexus, as Spilman says, will “enable all the buying and selling of mobile inventory that the market has been waiting for.” In other words, as Business Insider puts it, a huge array of buyers will be combined with a huge array of sellers.

Forbes reports that Millennial Media went public last year as a mobile ad network involved in direct sales of ad inventory on smartphones and tablets, and now the MMX partnership represents the company’s ongoing shift to bet on “programmatic” (automated) advertisement buying and selling on mobile. Although neither company expects to earn major revenue from the exchange until next year, they both hope that their partnership will encourage more spending on the quickly bought and sold programmatic ads we mainly see these days in the form of ads for gaming, dating and other types of mobile applications.

“When a large, premium advertising company and a leading technology provider come together, it accelerates the market into rapid expansion. Our partnership with Millennial Media will unlock their scale, high quality supply and unique data to ignite the mobile marketplace”, said Brian O’Kelley.

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