Contxto – Devoted to all things media, the U.S. video marketing platform for advertisers Innovid recently acquired the Argentine startup Herolens for US$30 million, according to the Wall Street Journal.
Following suit, the merger could bring about a whole new era for adtech based on Innovid’s use of analytics and AI, not to mention Herolen’s diverse service platforms.
To expand its focus on connected TV (CTV), Innovid purchased Herolens due to its expertise with display advertising software. Moving forward, the partnership will provide Innovid’s clients with a new and more efficient way of executing advertising campaigns.
While neither company disclosed agreement terms, sources at the Wall Street Journal reported that Innovid paid US$30 million in equity as well as cash to purchase Herolens.
Streamlining TV, video, display and social media into one platform, Innovid uses AI to create dynamic communications at any scale. After raising US$30 million from Goldman Sachs to expand in January, now Innovid will establish Buenos Aires as its headquarters while maintaining employees in Mexico and Colombia.
From the company’s perspective, the acquisition is a tactic to strengthen its business model ahead of other larger digital advertising platforms. For example, Google and Facebook that some may view as a media-based “duopoly.”
Today, Innovid is one of the only independent omnichannel advertising and analytics platform compatible with televisions. Much of this acquisition will help Innovid to expand its global ad serving, personalization features, as well as metric capabilities.
Thanks to Herolens, it will be able to include more display formats along with its pre-existing solutions. These include TV, video, social media, in addition to out-of-home advertising (OOH).
This Argentine company is one of the most prominent creative management platforms in Latin America. Data-driven and customizable solutions is what kept this company of 40 employees going for the past four years.
Brands have contracted Herolens for its self-service, hybrid or full-service display solutions that improve both asset management and advertisement campaigns. Past clients include Coca-Cola, Renault, as well as Mercado Libre.
According to reports, the company will continue to run in Buenos Aires. Co-founders Alan Karpovsky, Cristian Pereyra and José Galindo are said to also be joining Innovid’s team.
Together, both forces will combine display advertising and CTV. Some reports say that this deal showcases how digital marketing channels are evolving into a more “omnichannel” arrangement.
“We’ve heard first-hand from our clients, the world’s largest TV spenders, the need to leverage data to connect all channels, including TV,” said Zvika Netter, Innvoid’s CEO and co-founder.
“We continue to lead with the most advanced TV and video capabilities in the market, while also providing brands their desired goal of a single stack via adding support for display ads.”
Safe to say that advertising on just one platform is simply not enough in today’s wired economy.