Today we’re happy to announce our acquisition of Open AdStream® (OAS) has officially closed along with the completion of our $110M investment round. We are embarking on an exciting path to transform the ad server and are also marking an important step in the evolution of programmatic direct.
Over the past seven years, AppNexus has defined innovation in the ad technology industry. We were the first to serve an RTB impression in 2008; offered the first real-time data integration platform in 2009; and launched the first app marketplace in 2011. We continue to push the boundaries of what is possible in programmatic with new products like Twixt and the acquisition of industry viewability leader Alenty.
Most of the innovation over the past decade has been around building and growing indirect sales channels. As amazing a transformation as this has been, half of display advertising is still sold directly. Direct sales account for a majority of the revenue for premium content, but the technology underneath it is substantially the same as it was a decade ago.
We believe there’s enormous potential to be unlocked for publishers if we can apply the same level of innovation to the direct channel that we have for indirect.
We have spent the past decade working with the world’s largest publishers and portals to help them implement exchange technologies, and we have seen first-hand the daily limitations they live with due to the lack of investment and innovation in underlying systems. At AppNexus, we have big ideas about how a next-generation publisher ad server can help publishers maximize revenue across emerging formats, channels, and devices while protecting their proprietary data and respecting their audiences.
OAS will be an extremely valuable asset to us in this journey. While we could have built a new ad server from scratch, there were many reasons that made the decision to buy easy:
- OAS was founded in 1995 and has been in the publisher business for 19 years
- 174 personnel in 10 countries that have joined AppNexus
- OAS is the #2 sell-side ad server by market share
- It serves 2 trillion premium ads annually
- Approximately 400 global clients use OAS today
- Those clients include Bankrate, Comcast, Dominion, Eurosport, Sears, Monster.com, ToysRUs and Weatherbug, to name just a few.
We are well aware that the publisher ad serving space is a competitive one. At the same time, it is imperative that content producers have an ad serving partner that puts their data, audience, and revenue potential as the first and only priority. Publishers need an open platform that enables seamless integration with best-of-breed tools and monetization options.
In combination with the power and reliability of OAS, our open platform and vibrant ecosystem will create a better alternative to the products on the market today. This will put more dollars in the pockets of publishers to help them create amazing content and services for years to come.