Consulting firms, cloud companies, and publishers bought more marketing startups in 2016 than the major ad agencies
Consulting firms, cloud companies, and publishers bought more marketing startups in 2016 than the major ad agencies. Of the 398 marketing startup acquisitions in 2016 only 22% were made by the six major advertising groups, who had to fight it out with consulting companies, IT firms, and publishers.
When writing about startups, it’s hard to get readers excited with terms like “mobile attribution” and “marketing analytics” – it’s not as sexy as “artificial intelligence” and “self-driving cars.” Yet here’s AppsFlyer, a marketing analytics startup that specializes in extracting insights from mobile app installs and usage, bagging US$56 million for its series C round. This brings its total funding to US$84 million.
Denver ad-tech company Choozle Inc., landed $2.4 million from its investors to make 2017 an even bigger growth year for the company. It makes self-service software to help ad agencies and other clients place and manage digital ads in web publications, mobile video pre-roles and in social media. Great Oaks Venture Capital and other existing investors participated in the funding round, adding to the $4.6 million raised earlier, to fund U.S and international expansion after the company proved in 2016 it can profitably grow.
Private equity firms and business interests from the Far East are increasingly taking a stake in the combined adtech and martech space, according to Results International which also finds that martech is growing in popularity with acquirers
Ad tech mergers and acquisitions (M&A) has been a roller coaster in recent years, and 2016 certainly didn’t let up. Certainly in the rear view mirror M&A in ad tech was strong. That said 2017 the investment focus will move on, recognizing that Facebook and Google are dominating the market. The Wild West is tamed and a powerful duopoly rule.
Postr, a Wellington-based ad-tech company which builds telecom-branded white-label apps allowing people to hire out their Android lock screens for advertising, is gearing up to expand into the telecommunications markets in Australia and south-east Asia after attracting interest from investors.