One Of The Biggest Mobile Ad Giants Just Got Bigger

InMobi is set to announce today it will acquire European analytics company Appsumer, continuing a frenzy of consolidation among mobile adtech companies.

Terms of the planned deal, expected to close Thursday, weren't released.

InMobi, which has 2,300 employees globally and has raised $320 million since it was founded in 2007 according to Crunchbase, automates ad buying for advertisers like Hershey's, Coca-Cola, and Unilever, as well as ad selling for app publishers.

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Appsumer, which has 20 employees, consolidates ad insights from platforms like TikTok and Snap to help marketers like Picsart and Rakuten's Viber better understand how their spend is performing. Normally, marketers must use multiple sources to understand these insights across platforms, InMobi cofounder Abhay Singhal said.

"If you're a classical performance marketer, you would be working with 10 to 15 different partners," he said.

Appsumer, with mostly European clients, is small compared to InMobi's global presence. But Singhal believes Appsumer has a significantly larger addressable market than InMobi.

"The number of customers that could potentially use Appsumer is larger than those who could potentially use InMobi as a media source," he said.

Over the past three years, mobile adtech firms like InMobi, AppLovin, MGI, Azerion, and Zynga have been on acquisition sprees. That pace accelerated this year in response to Apple restricting tracking on its newest iPhones.

Most of InMobi's peers are creating fiefdoms that encompass content, data, and advertising, to ensure they can still help advertisers find consumers. This strategy is about surviving the changes hitting mobile advertising as it becomes more difficult for adtech companies to pass user data across different companies.

"You need ad tech to personalize the experience for users and move them around your properties," said mobile ad consultant Eric Seufert. "It's all about wrapping your arms around more first-party data within your own portfolio products."

But InMobi's recent acquisitions haven't been about owning content. Instead, it's focused on developing a mobile adtech solution that lets advertisers find audiences in the app ecosystem and target them with ads, and that helps publishers drive revenue from their content. Appsumer supplies a big analytics component to that vision.

"We believe in being an end-to-end programmatic platform to help our advertisers and partners," said Singhal.

And, InMobi is making tweaks to accommodate specific industries. For instance, after buying Sprint's adtech unit in 2018 and following a report it was negotiating to buy AT&T's adtech unit Xandr this year, InMobi launched a solution for telcos.

However, given the restrictions on data sharing in mobile advertising, InMobi's strategy could be seen as risky in that it relies on data sharing across different companies. Appsumer, for instance, requires data from multiple platforms to work.

But Appsumer CEO Shumel Lais doesn't think that will be a problem, as the company considers multiple data sources to make conclusions about marketing effectiveness. He said the company also plans to build predictive models so Appsumer can fill in the blanks left by disappearing mobile identifiers.

Until that happens however, industry experts warn that adtech firms that require mobile data they doen't own have an uphill battle.

"The idea that people would coordinate with other players and serve one specific function, and the data can just move from company to company?" said Seufert, about the mobile ecosystem in general. "That doesn't fit anymore."

Source : https://www.msn.com/en-us/finance/other/one-of-the-biggest-mobile-ad-giants-just-got-bigger/ar-AAPrxR2

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