InMobi, India’s one of the successful billion-dollar startup, and mobile advertising brand acquires AerServe. AerServ is a Los Angeles-based mobile video ad platform and they deliver the mobile video ads programmatically to its customers. AerServ provides its services to some of the big companies like Warner Bros, Gameloft etc. The deal was signed for $90 million.
Naveen Tewari, the co-founder and CEO told that this is one the acquisition that is necessary to make InMobi world’s largest independent mobile ad platform. Google and Facebook are the two who are dominating the world at present in this segment.
Digital Marketing is what will be the cherry on the top of the cake in coming future and video advertising and programmatic advertising will be the essentials. Tewari has stated that the acquisition is important for both the companies as InMobi did not have the programmes and AerServ is far from the scale that InMobi has.
InMobi had raised $200 million from Japan’s SoftBank in 2011, and later raised a debt of $100 million. Tewari said the debt is now down to $45 million. InMobi has been generating handsome revenue over the last two years. Video Advertising generates 35% of its revenue whereas programmatic constitutes 40%. With this acquisition, they are hoping to increase Programmatic ads revenue to80% in next two years and an increase in video ads also.
This acquisition will provide with an interesting concept that will make the online mobile advertising more efficient. Programmatic ad buying facility is the elimination of manual insertion and human negotiations and introduction of technology in this process.
Josh Speyer, CEO of AerServ, believes that this acquisition with InMobi will allow them to enter into its untapped markets if China and the greater Asia Pacific and the partnership could scale them globally.
InMobi with AerServ is the world’s largest independent mobile advertising platform and they are targeting beyond what is covered by Google and Facebook. They only display ads in their own content sides of the search engine and Social Media.
InMobi has made four acquisitions in the past, Sprout in 2011, MMTG Labs and Metaflow Solutions in 2012, and Overlay Media in 2013, but this one is the biggest till date.