Home Native Advertising Outbrain Acquires Native DSP Zemanta

Outbrain Acquires Native DSP Zemanta

SHARE:

Outbrain acquired native DSP Zemanta for an undisclosed sum Tuesday. The deal will bring together Outbrain’s scaled native supply with Zemanta’s demand, laying the groundwork for Outbrain to position itself as a leader in the still-nascent programmatic native ecosystem.

Outbrain bought the DSP because it expects native advertising to become larger than display advertising in the next five years, but that native advertising technology lags.

“Most of the media-buying tools used by marketers were made for a display world and are not optimal for ​​native executions,” said Gilad de Vries, SVP for strategy at Outbrain. “With a platform like Zemanta, which has access to the largest native supply pool in the world, marketers will be able to scale their native efforts much more effectively at scale than anywhere else.”

Outbrain already works with Zemanta. The DSP bids on billions of Outbrain native impressions a day. The company became an Outbrain DSP partner last year.

Zemanta has raised just less than $9 million since it was founded in 2007, in contrast to Outbrain’s $194 million over the same period. Zemanta sold some of its publisher-focused technology to Sovrn last September for an undisclosed sum.

Zemanta buyers will continue to bid across more than 30 native supply platforms, including Outbrain. The company can optimize for reach, frequency and user engagement, and it was the latter capability that attracted Outbrain. Post-acquisition, Outbrain will connect its interest graph to Zemanta’s DSP, allowing for more unique targeting opportunities.

Outbrain will also bring Zemanta, which is based in Slovenia, into more countries, mirroring its own 15-country footprint.

Publishers using Outbrain will see unique demand due to the Zemanta acquisition. “More access to unique and premium demand … will help in increasing RPMs,” de Vries said.

Outbrain buying a DSP makes it look a bit more like Google, the display advertising leader that successfully unified a DSP with a SSP. Like Google, Outbrain said it envisions its growing programmatic business and ad network-style business living side by side.

“Just like Google enables buying AdWords through one CPC-based interface alongside programmatic buying on CPM through DBM [DoubleClick Bid Manager], we see programmatic and direct buying coexisting, serving different needs for the marketer,” de Vries said.

Those who value Outbrain’s capabilities around personalization, interest targeting and lookalike targeting can work with the company directly, while those embracing programmatic native can use their own data to buy via Zemanta’s DSP.

Tagged in:

Must Read

Why Media Mergers And Spin-Offs Don’t Always Keep Their Promises

With media megamergers, acquisitions and spin-offs left and right, the media landscape is changing at a pace that is difficult to keep up with.

TransUnion is partnering with Blockgraph so that advertisers can use its identity data to target, reach and measure TV households across channels.

How This Disaster Relief Nonprofit Tapped First-Party Data To Reach Donors Year-Round

Staying top of mind for potential donors is an ongoing challenge for Direct Relief. Nexxen’s audience curation helped it spread and sustain awareness.

Why Major UK Publishers Are Finally Joining Forces To Curate Ad Inventory

Atria’s collective approach is a response to growing monetization challenges and the need to protect the value of human journalism in the AI era.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Toronto Canada pride parade includes a crowd waving pride flags

Ad Performance And Politics Steered Brand Dollars Away From LGBTQ+ Communities – But The Pendulum Will Swing Back

The current administration has discouraged many marketers and organizations from showing support for the LGBTQ+ community, including during Pride month.

How AI Can Enhance Content Without Generating It

As much as consumers complain about AI-generated content, advertising experts say AI still has an important place in video creation and production, including for ads. But using AI in content without turning off consumers is a tricky dance.

How Tovala Banks On Subscriptions And Incrementality – But Not Ads – To Profit From Its Oven

Smart TVs, refrigerators and other home appliances may pester you with marketing, but at least the hardware is cheap. Another startup taking a different approach to the same theory is Tovala, which was founded in 2015 and combines a standalone countertop oven with a weekly meal kit subscription.