adtech

drag2share: Flurry CEO Says IPO Is Inevitable As Its Mobile Ad Reach Overtakes Google’s

source: http://feedproxy.google.com/~r/businessinsider/~3/0L8Ch6ODo9k/flurry-ipo-and-ceo-simon-khalaf-2013-9

Simon Khalaf, the CEO of mobile adtech company Flurry, tells Business Insider that an IPO is inevitable in the company’s future because his business has grown so big.

There has been gossip about a possible Flurry IPO for months now. Large adtech companies are often aimed specifically at IPO “exits,” so that their venture capital funders can get a payback on their investments. Millennial Media, Tremor Video, YuMe, Criteo and Marin Software have all gone public recently. Yet when CEOs are asked directly if they want the rich rewards of floating their companies on the public markets, they usually demur or hedge.

When we asked Khalaf about an IPO exit, however, he was refreshingly direct: “I consider an IPO an entrance,” he tells us. “We don’t have a choice, our volume is too high and our scale is too big for anyone to absorb us.”

Flurry has a net revenue run-rate of about $100 million. It has 150 employees and has taken $50.5 million in funding from investors. And although that doesn’t make Flurry the biggest player in mobile adtech — InMobi and Velti still have more employees, and Millennial has greater revenues — it is one of the biggest players in big data analytics and mobile app ad reach.

Here’s a slide on the number of mobile devices — 1.1 billion — Flurry reaches with ad impressions inside apps from Khalaf’s pitch deck:

Flurry

It’s an alarming slide, because everyone knows that Google has the largest share of mobile ad revenue on the planet, which is in the billions of dollars. But the Flurry slide refers to reach on devices via ads in apps. Google’s mobile ad business is largely search. And the bulk of consumer time spent on mobile devices is in apps, not on the web, Khalaf says. Here’s the slide he uses to illustrate that point:

Flurry

Flurry offers the full mobile ad stack, including a “supply side platform” for mobile app publishers who want to offers ad space for sale, a “demand side platform” for buyers who want to place ads, an analytics suite to measure the whole thing, and most recently a “real-time bidding” platform so that buyers can place ads on a live auction basis. That RTB marketplace, launched in April, already has 30 DSPs buying in it, Khalaf says. The Guardian and The BBC both use Flurry as publishers.

There is one more thing Khalaf is unusually direct about. Flurry is not yet profitable, he says. Usually when adtech CEOs are asked whether their businesses make money, they launch into an explanation of how they’re investing for growth or scale (or they say something impenetrably complicated about EBITDA). When asked whether the company is profitable, Khalaf says, “No. In 2014 we’re profitable maybe.”

The reason: Flurry is spending $28 million a year on data centers. “The cost of analytics is huge,” Khalaf says. Flurry wants to create the largest HBase cluster in the business, he says, referring to the gigantic — and gigantically expensive — database serving devices that can handle millions of lines of tabled information.


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Friday, September 20th, 2013 news No Comments

drag2share: Millennial Media Has Just Done A Huge Mobile Ad Deal With AppNexus (MM)

source: http://feedproxy.google.com/~r/businessinsider/~3/roNVYWOoVVE/millennial-medias-new-mobile-ad-exchange-with-appnexus-2013-9

AppNexus, Brian O'Kelley

Millennial Media, one of the larger mobile ad companies, has joined with AppNexus to create a formidable joint venture it is calling the Millennial Media Exchange.

The move is yet another indicator that the mobile adtech space is consolidating fast into a handful of big players. Twitter, for instance, just acquired mobile adtech company MoPub for $350 million in stock.

The deal would create a mobile marketplace that, by one measure, would make it bigger than the one offered via Google. Millennial previously claimed that its acquisition of Jumptap put it level with Google in market size for so-called “third-party display” ads, meaning ads that show up in mobile apps.

AppNexus is one of the largest New York-based digital adtech companies, with 500 employees and $141 million in venture funding. Its strength is in web buying and only recently did CEO Brian O’Kelley turn the company to focus more on mobile. It is widely expected to be considering an IPO in the near future.

Millennial IPO-ed in 2012, and recently acquired Jumptap. It now has roughly $241 million in combined annual revenues and 350 employees. Jumptap gave Millennial a real-time bidding, “programmatic” buying platform to add to the premium publisher inventory it was offering in its ad networks.

In simple terms, the deal with AppNexus gives AppNexus’s ad buying clients access to Millennial’s sales inventory and its Jumptap buying platform. It combines a huge array of buyers with a huge array of sellers, in other words.


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Wednesday, September 18th, 2013 news No Comments

drag2share: Wall Street Is Punishing Adtech Players For Failing To Make Money (MM, VELT, MRIN, AUGT, TRMR)

source: http://feedproxy.google.com/~r/businessinsider/~3/yoh3hV52jkk/wall-street-is-punishing-adtech-players-for-failing-to-make-money-2013-7

If you’re looking for signs of the adtech bubble popping, then Ad Age may have found a couple for you. Three high-profile adtech companies went public in the last year and a half — Mobile ad network Millennial Media, online-ad provider Marin Software and video-ad server Tremor Video — and all have seen their stocks largely rejected by investors, even while the broader market rises.

Here’s a summary of public adtech stocks, based on their IPOs (or historic highs) and their current prices:

  • Marin Software: Debuted at $16.26, now languishes at $12.
  • Millennial Media: Debuted at $23.50, now at $9.67
  • Tremor Video: Debuted at $8.50, now at $8.36
  • Velti: Debuted at $15.58, now at $1.13
  • Augme Technologies: Hit $4.90 in 2003, now at 36 cents.

You could add Groupon into the mix too. It debuted at $26.90, and is now worth only $8.90.

All these companies are chronically unprofitable. The Velti situation is most worrying — its revenues are down too and the company is in turnaround mode.


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Tuesday, July 23rd, 2013 news No Comments

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