Dive Brief:
- AppNexus, an automated online advertising technology group, is set to announce its acquisition of rival Yieldex for an estimated $100 million—sparking rumors of a looming IPO.
- With Yieldex, AppNexus will be able to expand its automated technology into the process of direct sales from sales people to advertisers.
- Yieldex has built a system that helps to determine the value of each ad spot—which could help the merged ad tech firms offer more premium slots through what eMarketer calls "programmatic direct."
Dive Insight:
Despite the apparent success of so many ad tech firms, IPO success has been a bit more elusive. Two powerhouses like AppNexus and Yieldex could turn that around for the industry. Although the firms were former rivals, it seems as though the companies have complementary technology and services that could help them grow in the market.
