Jul 15, 2021 06:00:00

Mediaocean, a major TV advertising company, acquired Flashtalking, an ad tech company, for about 55 billion yen, what is the purpose?

Mediaocean , which provides advertising services centered on TV advertising, has announced that it will acquire Flashtalking, an ad tech company, for $ 500 million (about 55 billion yen). With this acquisition, Mediaocean will step further intothe digital advertising industry supply chain .

Mediaocean to acquire Flashtalking, adding complementary solutions to power $200 billion in annualized media spend | Mediaocean
https://www.mediaocean.com/flashtalking-acquisition

Mediaocean to Buy Adtech Company Flashtalking for $500 Million - WSJ
https://www.wsj.com/articles/mediaocean-to-buy-adtech-company-flashtalking-for-500-million-11626170400

Mediaocean provides advertising billing and advertising planning and purchasing services to marketing and advertising companies, and has already conducted $ 200 billion (approximately 22 trillion yen) of advertising transactions in 2021. . Of these advertisements, 70 billion dollars (about 7.7 trillion yen) are related to television, 100 billion dollars (about 11 trillion yen) are digital advertisements, and the rest are outdoor advertisements such as billboards.

Since Mediaocean was acquired by investment company Vista Equity Partners in September 2015, it has made a total of 11 acquisitions, and this time the acquisition amount will be the largest ever. The acquisition is believed to be primarily focused on the ad tech sector, as online spending has increased in recent years and demand for digital advertising has skyrocketed.

Mediaocean's strength was originally in TV advertising. It was said that what TV advertising needed was Mediaocean and Nielsen accounts, which are the entire supply chain. It's better,' and is proceeding with acquisitions related to digital advertising. “For us, the agreement with Flashtalking is the cornerstone of what lies ahead,” said Bill Wise, CEO of Mediaocean.

On the other hand, Flashtalking is a company that provides digital ad servers, technology to manage digital ads, and technology to verify the quality of ads . It has Adobe and P&G as clients, and has technology to implement targeted advertising without using cookies, which have been subject to regulation in recent years.

The acquisition will make Flashtalking's technology available for ad buying on smart TVs and the open web, Wise said. Mediaocean acquired 4C Insights, which operates a targeting advertising platform, in 2020, and Flashtalking's technology is expected to complement 4C Insights' technology.