Mobile ad platform Millennial Media is buying up mobile exchange Nexage and the message to agencies seems fairly clear: We want to be your everything.
Announced Tuesday, the $107.5 million deal, a mixture of cash and stock, is expected to close in Q4. The tech integration will start in earnest in the new year.
With the acquisition, Millennial Media hopes to become a self-styled independent alternative to larger players with mobile tech stacks, like Google’s Admob, Twitter’s MoPub, the Facebook Audience Network and Apple’s iAd.
Millennial’s CEO, Michael Barrett, was particularly emphatic on that point in a call with investors Tuesday morning.
“We’re an independent company, [while] the other folks that kind of look like us in this space are also publishers and own their own inventory,” Barrett said. “We’ve consistently heard feedback from the advertising side about the large appeal of working with someone like Millennial, just given our position as an independent in the marketplace.”
When Nexage’s platform is officially integrated into Millennial’s tech stack, the latter will be able to add SSP capabilities to its existing DSP and DMP, allowing advertisers and agency trading desks to buy how they want to buy. Goodbye insertion orders, hello programmatic direct.
That’s what Barrett is banking on, at least.