Native advertising business Outbrain has acquired advertising optimisation system Adgin in a merger that will – according to both parties – increase the effectiveness of native advertising.
The merger follows a six-month pilot program, during which Outbrain worked to optimise the functionality between the two platforms, and ensure that potential improvements as a result of the merger would be realised. While the results haven’t been published, the announcement says that Outbrain now has the confidence to move forward with what has the potential to be a defining acquisition.
Why does this particular merger matter? After all, Outbrain has been on the acquisition war-path for the last few years, and the acquisition of an optimisation provider was just the logical next step. Adgin however, is a unique beast; it doesn’t just work to improve the type of ads being presented to different groups of consumers, instead it focuses on the individual with intricate algorithms providing insights into what would best suit a particular audience member at any given time. This type of insight was exciting to Outbrain at many levels, especially given the frustrations many clients have experienced using native advertising software over the last 12 months. With the added complications of privacy concerns around the world, Outbrain was given a challenge and an opportunity. The problem was one of industry credibility – the business has been tarnished with the same brush as other adtech firms, and needed a way to distance itself from privacy issues and potential legal wrangles.
The opportunity however was – and is – enormous. Outbrain as a market leader now has an unusual advantage over its smaller competition. With other native advertisers struggling to gain, or maintain a foothold, Outbrain can now use its increased credibility, technology and size to position itself as a genuine, and potentially unbeatable leader in native advertising and marketing technology in general.
That is, as long as the merger yields the results that both Outvrain and Adgin are hoping for.