Peer39 exits for $15.5, As DG Adds Semantic Targeting To Its Offering

In what appears to be a fire sale, and an ominous sign for the feature-led product companies in the ad tech space, Peer39, a semantic targeting company, announced it was being acquired by DG for just $15.5 million. Peer39 had raised around $27.4 million to-date.

DG has acquired one of the leading semantic ad solution providers at a snip and will add an impressive targeting layer to its stack. Given the current confusion around the e-privacy legislation, DG will be able to offer European clients advertising solutions behind "contentious" behavioural targeting. You can read more about the deal here.

madvertise Expands Into Turkey

More proof that Turkey’s start-up scene is heating up comes with the news that German mobile advertising platform madvertise is to make its first acquisition in the country.

Mobilike, one of Turkey’s leading advertising companies, has been bought by the Berlin-based company.

Carsten Frien, CEO and co-founder of madvertise, comments: “The Turkish market is the second fastest-growing on the planet, after China, and is extremely attractive. Fifty per cent of our audience is younger than 26. We see a tremendous growth potential in the Turkish market. We want to use our presence in Turkey to enter the entire Middle East and North Africa region.

According to Mobilike co-founder Şekip Can Gökalpm, smartphone and tablet advertising comprised 25% of the market in 2011. It is expected to reach half the market by the end of 2012.

The company was founded in 2009 and, says Mr. Gökalpm, was profitable from the first month. “We sold our first campaign even before we had a company. We never needed external financing.” The Istanbul-based company has 13 employees and, according to Mr. Gökalpm, would employ around 25 people by the end of the year.

“We estimate the total size of the mobile display advertising market to be currently around 7m-8m Turkish lira (€3m – €3.4m). We have a market share of 60% of that market.”

After securing its Series B in October of last year, this acquisition signifies madvertise’s aggressive plans to take a leading position on the European mobile advertising market. Mr. Frien said they had purchased a majority of the company.

While Mobilike will continue as a separate brand in Turkey, madvertise is to launch its own branded service in the country. “We are going to keep the brand,” Mr. Frien said. “We will also introduce our brand into the Turkish market. Mobilike is serving the premium end of the market, working with premium publishers such as the large media groups in Turkey. madvertise, with its focus on technology and targeting, is well positioned to capture a different segment of the market.”

madvertise doesn’t publish figures and Mr. Frien wouldn’t reveal turnover. He would only say that the company had doubled headcount every year since 2009. “Our revenue has scaled much quicker than our cost base. We are going to do north of €10m in revenue in 2012.” madvertise’s funders include international venture-capital groups Earlybird, Blumberg Capital, Point Nine Capital and Felicis Ventures.

madvertise’s move follows that of Russia’s Yandex, whose move into Turkey was its first expansion outside of the former Soviet states.

Bellwether Report reveals third successive quarter of upward revision to total marketing budgets

The IPA’s Bellwether Report has found the third upward revision to total marketing budgets in as many quarters, in response to new product launches, expectations of better economic conditions and higher rates of return on investment.

It was found that almost 22% of companies reported an upward revision to budgets compared to 21% that recorded a downward revision.

Nicola Mendelsohn, IPA president and executive chairman and partner at Karmarama, said: “It’s encouraging to see that marketing budgets are up again for the third quarter running, leading to the first rise in annual spend in four years. Business confidence is returning which is also welcome news.

“Companies have also set their budgets higher for 2012, albeit with a much greater degree of caution than in recent years due to the continuing uncertain economic climate. Yet there is no doubt that key events such as the London 2012 Games and the Queen’s Diamond Jubilee will do much to ensure that marketing spend continues to rise.”

The report also found that executives’ views for financial prospects in the industry in which they operate are up from -44.9% in Q4 to a six-quarter high of 1% in Q1, the largest quarterly jump in the history of the report.

Chris Williamson, chief economist at Markit and author of the Bellwether, comments: "Companies' views on their financial prospects have risen to the highest for two years, but the brighter outlook has yet to be fully reflected in plans for marketing spend.

"Although current marketing budgets were revised higher for the third consecutive quarter, the increase was only marginal. Furthermore, although companies have set their marketing budgets higher for 2012-13 on average, they have started 2012 with the most cautious approach to spending for three years.

"This perhaps reflects a more pragmatic approach to budget setting, given that initial increases in budgets were steadily revised away in the past two years, as weaker than expected sales caused firms to cut marketing costs. However, with the coming year seeing events such as the Olympics, Diamond Jubilee and Euro 2012, it is likely that the year will again see an increase in marketing spend."

It was discovered that internet advertising budgets were revised up to the greatest extent of all categories, up 7.8%, and the main contributor to the overall upgrade. Within internet advertising, online search/SEO spend was also revised up by 4.7%. Sales promotion was unchanged, while main media was revised down 2.7%, and direct marketing was revised down by 3.2%.

Pietro Leone, CEO of G2 EMEA, adds: “It is positive to see that internet advertising, online search and SEO are being given increasing budgets to build consumer engagement with brands in the digital space. Brand owners need to use data insights to create targeted communications that increase consumer engagement and confidence in the online shopping experience.

“In addition, even though consumer confidence is growing – boosted by events such as the Olympics and the Jubilee in the UK – marketers still need to think long term and create targeted and relevant communications that build relations with consumers along the entire purchase decision journey in an enduring and meaningful way.”