Mobile Ad Tech Is Consolidating, Big Time...
Ironsource will buy mobile ad and app monetization firm Tapjoy for $400M (source: VentureBeat)
Summary:?Here we go again. More evidence that the mobile marketing industry is in consolidation mode right now. Ironsource, the Israeli app monetization and distribution platform has made its latest acquisition for San Francisco-based Tapjoy, an app monetization platform that?enables users to view ads and fill out surveys in exchange for in-app goods. TapJoy will generate ~$81M in net revenue in 2021. IronSource says the Tapjoy deal will strengthen its platform for its gaming and non-gaming app developers by giving them a new monetization technology to utilize. It will also give developers access to more advertiser demand through Tapjoy's marketplace. “Our platform-based approach to serving app developers means we’re able to plug in multiple strategic additions to our software platform to add more value for customers,” IronSource CRO Omer Kaplan said in a statement. “This acquisition follows that strategy, ultimately allowing us to serve our customers in the most beneficial way possible, by growing our SDK footprint, improving our monetization capabilities, and positioning our platform as a deep and integral part of the in-app and in-game economy.” It's been a busy year for IronSource, which also acquired?video and playable ad platform Luna Labs?and?ad measurement firm Soomia. In June,?it began trading on the New York Stock Exchange?through a special purpose acquisition company (SPAC) at a valuation of $11.1B. The Tapjoy deal follows major mobile ad M&A activity over the last couple of years, and particularly last week when AppLovin – the industry’s biggest consolidator –?paid $1.05B to acquire MoPub, the industry's largest mobile supply-side platform, from Twitter.?
Opinion:?There's an arms race happening right now in mobile ad tech. The major consolidators are AppLovin, Digital Turbine, IronSource, InMobi, UnityAds, and Blackstone / Vungle. Each of these players is attempting to marry app monetization tools with unique data + ad tech in order to build a moat around their mobile marketing platform. In AppLovin's case, they are also incorporating their own app development?(through their?Lion Studios division?and their?acquisition of Machine Zone).
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Why is there an arms race? These companies are flush with cash, and?see each other stocking up on strategic assets, creating?mobile FOMO. Perhaps more importantly, they feel the?walled gardens closing in on them,?especially given data privacy shifts?(wait 'till you see what Apple has been up to in the final story of this week's newsletter).
Is there room for 6 independent mobile ad tech behemoths in the industry? Probably?not!?The walled gardens will continue to be a massive presence in mobile ad tech, and perhaps there will be room for few independent winners.?All of these companies have interesting, unique mousetraps, and have the products to succeed (with AppLovin currently in pole position). They also have plenty of money. Which means strong product and cash are practically table stakes in?this race. Success will come down to vision, integration, and execution. In the meantime, app publishers and marketers should be salivating at the thought of an extremely well-resourced set of mobile platforms competing against each other to win their business!
Google (Programmatic, Apps) | Angel Investor (Bombas, Jolie, Visible Hands, Sway, Local Infusion) | Advisor (Serac Ventures)
3 年I think Michael Brooks is touching upon the most important part - which of these players is best positioned to maintain strong monetization in the face of user level data being redacted. I don’t know the answer but ultimately I think the company that wins or at least product markets themselves best will continue to gain momentum with all 3 sides of this marketplace - app developers, publishers, and brands. Also, I can see EA (which Shiv listed), Blizzard, Nintendo, or other large gaming companies jumping into this sector through acquisitions.
Senior Manager, Sales @ Liftoff | AdTech GTM Leader
3 年Shiv Gupta love that you’re diving further and further into the mobile app vortex ?? ?? No question that “vision, integration, and execution” will be essential for all the newly consolidated companies.
SVP of Global Sales @ Digital Turbine | Global Sales Leader
3 年I think you’ve both said it well. The frothy/competitive nature of our space is good for advertisers and publishers alike and the growth in mobile games and rewards to advance in those games is also growing especially if you look at high growth markets that are IAA driven. It will be interesting to see if mobile games/publishers become more selective in working with partners that don’t own their own studios. As we’ve seen in our space for a long time, having a strong foothold in the mobile gaming space generally reaps dividends but now there are some really strong options to choose from for both growth and monetization.
Global Head of Business Development and Partnerships at LG Ad Solutions
3 年The TapJoy acquisition makes sense financially, but where AppLovin will shut down MoPub, ironSource will probably run with TapJoy. The question is, does the future of privacy and attribution make incentivized installs and/or rewarded video a stronger or weaker tool? ironSource gains marketshare in rewarded video, a medium known to convert well and drive mega CPMs; I'd guess these become larger channels in a new world of growth post iOS 14.
SVP of Global Sales @ Digital Turbine | Global Sales Leader
3 年I prefer the video's with Brooksy Michael Brooks ??