Dive Brief:
- Mediaocean has acquired Innovid, with plans to merge the ad-tech firm with its Flashtalking unit to create a new omnichannel platform, according to a press release. The deal, expected to close early next year, has an enterprise value of $500 million.
- Innovid is known for its connected TV (CTV) capabilities while Flashtalking specializes in creative and production areas. Together, they will offer ad delivery, creative personalization, measurement and campaign optimization for channels including digital, social, CTV and linear TV.
- The move contributes to a recent run of ad-tech M&A and growing activity around CTV, specifically. Mediaocean and Innovid positioned their union as an independent, “neutral alternative” to Google that promises interoperability between Big Tech platforms.
Dive Insight:
Mediaocean gains a specialist in CTV advertising and measurement with the deal for Innovid. The $500 million acquisition complements the capabilities of Flashtalking, which uses automation to break down organizational siloes and enable more efficient production, versioning and distribution of ad creative. Mediaocean, a privately held software and services provider that helps marketers manage their ad spend, purchased Flashtalking for a similar price in 2021.
Mediaocean’s goal is to build an omnichannel ad-tech platform that offers a wide range of services and acts as an alternative to the Big Tech heavy hitters.
“Today’s advertising landscape needs independent technology companies who can provide a neutral alternative to Google and interoperate effectively across Big Tech platforms,” said Bill Wise, co-founder and CEO of Mediaocean, in a press statement. “Now Flashtalking plus Innovid will establish a premier independent ad tech business with a keen focus on creative and CTV.”
Zvika Netter, Innovid’s founder and CEO, will lead the combined organization, reporting to Wise. Grant Parker, currently in charge of Flashtalking, will be president of the new unit, acting under Netter. In addition, Netter will join Mediaocean’s board.
Mediaocean is the latest ad-tech independent to make fresh shots across the bow at the industry’s biggest players, which are more vulnerable amid an antitrust crackdown. Independents argue that marketers’ ability to leverage data is constrained and lacking transparency when working within what are commonly referred to as walled garden platforms.
Snapping up Innovid also speaks to the desire to capitalize on the CTV boom. Viant Technology, a programmatic ad-tech company, last week acquired CTV content data platform IRIS.TV to get a leg up on transparency into the channel’s ad inventory.
