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Millennial Media acquires Nexage to drive data-enriched mobile ad impressions

Mobile ad network Millennial Media continues its buying spree with Boston?s ad tech firm Nexage in an attempt to provide an end-to-end assortment of advertising offerings to publishers.

As a multitude of top publishers experiment more heavily with mobile, syncing editorial content with the best execution of mobile-friendly ads help these publications translate more seamlessly to its readers. Meanwhile, brands who are advertising with those publishers can more easily integrate their content into the advertising platforms.

?This announcement and deal with Nexage will allow us to more quickly navigate and win in the evolving mobile world with a true end-to-end mobile ad stack,? Marc Theermann, executive vice president of business strategy at Millennial Media, Boston. ?Nexage has the right technology and capabilities for us to fulfill our vision in creating an open, full stack solution that lets us determine our own fate, control the flow of impressions, and operate an independent exchange. 

?With Millennial Media?s existing data management platform as its backbone, the two companies will be in a distinct position to enrich impressions through first- and third-party data.?

Moving on up
The marketplace will cough up approximately $107.5 million in cash and stock in its purchase of the ad tech firm.

Millennial Media?s move is followed by a recent, similar acquisition of Boston-based tech firm JumpTap.

The acquiring of Nexage will help Millennial Media allow for Demand Side Platforms and trading desks to buy ad impressions via programmatic direct, private exchange and open auctions.

Publishers will be able to expose impressions to classic networks, including the Facebook Audience Network, Google?s Admob and iAD through a Supply Side Platform. While Nexage is connected to more than 225 programmatic buyers and networks, it provides a complete mobile monetization solution.

Lastly, Millennial Media will gain an ad server that publishers and developers can utilize to launch directly sold campaigns.

"There's a land grab going on in mobile right now as Facebook and Twitter are clearly becoming mobile companies first and foremost,? said Jon Elvekrog, CEO and co-founder of 140 Proof. ?A programmatic solution gives Millennial an important tool in maintaining and growing its value in an increasingly competitive battlefield.?

Mr. Elvekrog is not affiliated with Millennial Media or Nexage but agreed to comment as an industry expert.

Gaining attention
Nexage, a privately owned establishment, is a provider of Real Time Bidding technology that aims to automate the buying and selling of mobile advertising.

It has recently reported a 227 percent growth in programmatic spend annually, most likely due to an increase of mobile consumption and an acceleration of brand spend in the premium segment as advertisers energize to reach and compel the mobile consumer via programmatic buying.

Nexage has served a realm of publishers, such as MLB, Rovio, Univision, The Weather Company, Wenner Media, InterActiveCorp, Fox News, Gannett, Mail Online, CBS Local, and Shazam. 

Due to Nexage?s capabilities, these publishers grew ad requests by 192 percent annually and increased the proportion of high-value ad formats. Video inventory has grown by 516 percent, while commanding 7-12 times the CPM premium. Comparatively, rich media has grown 346 percent annually while commanding a 5-10 times CPM premium.

?Brand and agency buyers are looking to reach targeted mobile audiences at scale,? Mr. Theermann said. ?Acquiring Nexage enables us to meet that need with a larger pool of data enriched supply. 

?In addition, we see brand dollars moving to programmatic, in particular private exchanges and programmatic direct deals. Controlling our own auction environment allows our buy side teams to accept deals from DSPs, trading desks, and other RTB advertisers.

?We believe that our deep relationships with buyers, paired with Nexage technology makes for a pungent combination for future brand buyers.?

Final Take
Caitlyn Bohannon is an editorial assistant on Mobile Marketer, New York