ExchangeWire European Weekly Round-Up
by News
on 28th Mar 2014 in
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ExchangeWire rounds up some of the biggest stories in the European digital advertising space.
1. Will The Toppling Of King.com’s Share Prices Rebound On Mobile Ad Prices?
King.com started trading on the New York Stock Exchange earlier this week with an initial share price of $22.50, only for its stock to drop 9% valuing the company at $2.28bn within a short period of time, with potentially detrimental effects on the mobile advertising market.
King is widely touted to be one of the big spenders on mobile advertising, mainly through app install advertising, and mostly through Facebook, and can justifiably be labelled as one of, if not the ad sector.
We need only look at the social network’s most recent financial filings – where it posted that mobile accounted for over half of its advertising revenues – to see how important the patronage of King.com is to the market.
However, with the markets now scrutinising the company’s openly available financial information being scrutinised on at least a quarterly basis from now on, ExchangeWire wonders how this will affect the games manufacturer’s willingness to spend on the medium?
2. Facebook’s Oculus Purchase
On the topic of Facebook and games, it would be negligent not to raise the reputed $2bn purchase of virtual reality headset company Oculus by Facebook earlier in the week.
A release confirming the deal claims there has currently been over 75,000 order of the Oculus Rift headset, mainly from developers.
While the applications for virtual reality technology beyond gaming are in their nascent stages, several industries are already experimenting with the technology, and Facebook intends to leverage Oculus’ existing footprint in gaming to new verticals, including communications, media and entertainment, education and other areas.
“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” said Facebook founder and CEO, Mark Zuckerberg.
Just what this means for potential ad models on the social network – or indeed for improving its potential as a brand safe environment – remains to be seen, but it could arguably involve Facebook pivoting to introduce paid-for content into its portfolio.
3. TubeMogul, Ebuzzing, TEADS All Line Up For An Exit
A host of companies in ad tech revealed their plans to list this week with TubeMogul filing an S-1 document with an offering up to $75m according to report, and the French pairing of Ebuzzing and TEADS announcing their plans to merge with a view to listing on the NASDAQ next year.
Earlier in the week, video ad buying platform TubeMogul announced it was to float with its S-1 filing revealing total revenues for 2013 were $57.2m, up 67% from the prior before, although in true start-up mode it is still operating at a loss.
Meanwhile, like-minded video advertising firms Ebuzzing firms announced plans to merge this week, with the new entity forming Ebuzzing and TEADS Group, with both companies claiming their combined revenues will hit $100m this year.
The group plans to list on the NASDAQ in 2015 with Ebuzzing (a video ad network, and TEADS a video SSP) claiming that combining their two business models will provide a good valuation for investors. Sources close to the plans claim they have opted to list in the USA as opposed to elsewhere in Europe due to the chances of better fund-raising opportunities, adding that London’s Stock Exchange is more the domain of ecommerce companies rather than ad tech.
4. Mobile Ad Network Adfonic Rebrands as Byyd
Adfonic, one of the few European-based advertising businesses, has announced its rebrand as Byyd along with a host of customer wins.
The company claims the rebrand is a reflection of its evolution from traditional mobile ad network to demand-side platform, adding to its news earlier in the year that it was partnering with Weve (the joint venture between EE, O2 and Vodafone) to launch its mobile display ad offering, with its bidding platform Madison.
Victor Malachard, Byyd CEO, says: “Our mobile DSP, Madison, and ad campaign services constitute a unique, differentiated offering, leveraging cookieless technology, unlocking value from big data, and focusing exclusively on the buy side.”
The company also announced took the occasion to announce a host of new customers including digital agencies MediaCom, Starcom MediaVest, Havas and Essence; plus Aegis trading desk Amnet and Interpublic's Group's Cadreon.
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