Indian mobile advertising network InMobi on Wednesday announced the acquisition of Los Angeles-based startup AerServ for $90 million in a cash and stock deal.
AerServ helps mobile publishers grow revenue through its ad mediation platform, and increase yield by delivering brand-based ads.
InMobi, which was backed by top investors including SoftBank, said the acquisition would help it to create world’s largest programmatic video platform for mobile publishers. It would also strengthen the InMobi Exchange, a premium mobile programmatic platform, according to the firm.
“This acquisition fits in perfectly with our global strategy to bring best-in-class technology for premium publishers and drive mobile programmatic video revenues to them,” said Abhay Singhal, co-founder and Chief Revenue Officer at InMobi, in a statement.
The acquisition is expected to help the Bengaluru-based InMobi in its competition with the firms like Google, Facebook and Apple in the market for mobile advertising.
Programmatic ad buying mainly pertains to the usage of technology to procure digital advertising. The traditional method requires human negotiations and documents that solicit proposals.
“We’re excited to join forces with InMobi and grow the mobile advertising and programmatic industry together,” said Josh Speyer, CEO at AerServ, in a statement.
Two-thirds of the world’s digital display advertising (67%) will be traded programmatically by 2019, up from 59% in 2017, according to Zenith’s Programmatic Marketing Forecasts. The value of advertising sold programmatically will rise from $57.5 billion in 2017 to $84.9 billion in 2019, growing at an average rate of 21 % a year.
Mr.Singhal of InMobi also said the combined entities will double InMobi's headcount in the U.S. while establishing a product and tech hub for the firm in Los Angeles, a hotspot of innovation for media and video content. “We are two profitable companies combining forces in North America,” added Mr.Singhal.