Publicis sees bright future in mobile performance, picks-up 24% stake in Matomy
Publicis’ investment represents further evidence of the growing mainstream acceptance of mobile performance advertising, with Matomy saying the agreement is “significant endorsement” of its business model. In a statement, the two companies said they aim to build a strategic alliance to become the leader in the performance space, accelerating Matomy’s continuing global expansion.
This also means big opportunities for the Tel Aviv-based Matomy, which says Publicis’ big brand clients will soon increasingly turn to performance-based, and indeed mobile-based, advertising solutions, if they haven’t already.
“We are seeing an impressive transformation in the digital advertising industry, and the ‘pure’ performance-based advertising space is an area of high growth potential fuelled by innovation and technology across all channels. Our vision is to build the best performance-based media company in the world, and with Publicis Groupe becoming our largest shareholder, we will be able to create a more mature and sustainable ecosystem, providing marketers with an unprecedented ability to accurately engage, acquire and retain customers.”
Publicis’ investment is also another sign of consolidation in the mobile ad sector that’s likely to gather pace into 2015. In the space of a few weeks we’ve seen Facebook launch a two-pronged assault with Audience Network and Atlas, Google rolling out more brand-friendly formats, and Millennial prepare for increasing brand-interest in RTB with the acquisition of Nexage. All eyes will now be on the other ad giants WPP, Omnicom and Interpublic and how they further react to the long-awaited big brand push into mobile.
Under the terms of the deal Publicis Groupe will acquire 20% of Matomy’s shares at a price of 227 pence per share. In addition, Publicis has been granted an irrevocable option to acquire a further 4.9% of Matomy’s shares. Matomy, which floated on the London Stock Exchange back in July reported revenues of $129 million for the first half of 2014. For more information head over to the Matomy website.