Internet stalwart and notable portal Yahoo has announced its acquisition of Admovate, a mobile advertising system that features the kind of personalization capabilities Yahoo might find helpful to better target its campaigns.
Admovate to Complement Yahoo Genome + Right Media
Yahoo has moved in on Admovate to help bolster its already in place ad systems like Genome and Right Media. Yahoo uses Genome to sell consumer data to advertisers so they can find the right buying audience mix. Right Media is what Yahoo offers for putting together campaigns, serving ads, analytics and as a hub to help agencies find even more clients.
Yahoo launched Genome in 2012, even before Marissa Mayer took over as CEO, so much of the company's advertising strategy seems to have already been in place. Genome uses Yahoo's in house data, and allows marketers to have access to ad inventory from AOL, Microsoft and comScore as well.
Mobile Ads an Untapped Resource
Think Yahoois late to the game with this purchase? That's certainly been the case in some of is acquisitions in the past, but not this time. Apple has only been in the mobile ad game for about the last three years, and even Facebook, the company that prides itself on its mobile prowess only launched its in house mobile ads network in 2012.
Analysts at Gartner have predicted worldwide mobile ad revenue would pass US$ 11 billion by the end of 2013, and would balloon up to US$ 24 billion by 2016. Specifically, the growth in mobile ads is driven by mobile search, Gartner found, but it also predicted mobile display ads to eventually overtake search as the largest money maker.
In less than a year, Facebook became the leader in mobile display ads, but its lead over Google is slim, and so there's still hope for a growing Yahoo ad network. Will it be enough to keep the company going in up and down times? Maybe, but recent numbers from Yahoo were fairly middling, so perhaps the Admovate buy will give the company a tiny shot toward upward growth.