Advertising and technology ("ad tech") company Tremor International is acquiring fellow ad tech company Amobee to access its state-of-the-art tech systems.
Amobee's business over the past few years has fallen due to COVID-19. Former owners Singtel placed Amobee under strategic review in May 2021 after their revenue fell 18% in the first quarter alone. In the 2022 fiscal year, Amobee lost $50.4 million in earnings, which the company attributes to a cut in ad spending and lower TV revenue. Additionally, Tremor's acquisition of Amobee for $239 million is $82 million less than Singtel paid in 2012. However, Tremor sees potential in Amobee that Singtel didn't.
Tremor Chief Executive Officer Ofer Druker says that Amobee's main growth levers are data and technology. Amobee excels in linear TV and performance video, and the acquisition will include Amobee's advanced TV platform and demand-side platform.
"This is a critically important capability which allows advertisers to understand and analyze true de-duplicated reach when executing campaigns simultaneously across linear and digital," Druker said. "And it will enhance Tremor's data footprint."
He adds that Amobee fills a gap in Tremor's lackluster performance marketing. Tremor's primary focus is on delivering brand-building campaigns to clients, but one priority isn't enough in this current ad tech market. Druker says that clients now demand direct-to-consumer advertising, including performance capabilities in their video campaigns, which is where Amobee excels.
Druker hopes this merger will expand both companies from predominantly catering to United States customers to a more global consumer base. Tremor is looking to expand to Australia, Europe, and the United Kingdom. Amobee's client base includes 500 clients, a few outside the U.S., which will aid this transition. Tremor expects a 12 to 18-month transition integrating Amobee into its business.