Mobile advertising platform InMobi has acquired US-based mobile video ad startup AerServ for $90 million in cash and stock deal. With this acquisition, InMobi’s video and programmatic (automated digital advertising purchase technology) business will account for 35 percent of the overall company revenue and will help the company to strengthen its position in the mobile video advertising industry in the US.
Founded in 2013, AerServ is an inventory and audience monetization technology for mobile publishers. Its team will join InMobi’s team in US. Abhay Singhal, co-founder of InMobi said in a statement that the combined entities will double the company’s headcount in the region, and added that both the entities are profitable. Singhal also said that this acquisition fits in perfectly with the company’s global strategy to bring technology for premium publishers and driving mobile programmatic video revenues to them.
The company explained in its statement that brand advertisers are in need of transparent programmatic platforms of ad inventory that can be independently verified. It is expected that two-thirds of the world’s digital display advertising will be traded programmatically by 2019 and advertising sold programmatically will increase from US $57.5 billion to US $84.9 billion over the next two years, growing at an average rate of 21 percent a year.
InMobi’s global expansion
The Bangalore-based mobile ad-tech platform has been using multi-forked strategies to expand its footprint globally. Last year, InMobi entered into a strategic partnership with Chinese mobile manufacturer Xiaomi for advertising on the latter’s devices, to provide video ads on the phones. This was InMobi’s second international partnership after it partnered with US based Tapjoy to monetize the latter’s mobile gaming apps like 8 Ball Pool, Criminal Case, Subway Surfer etc., in India.
In 2015, InMobi had also partnered with Sky Media, the ad sales arm of British media conglomerate Sky, to expand its offerings to advertisers and publishers in the UK. It had also partnered with payment companies Stripe, Alipay and Paytm to enable payments over its advertising discovery platform Miip.