The big guys are acquiring marketing technology. So are the little ones.
Digital marketing provider DataXu, a Boston-based, 250-employee company, announced this week it acquired JasperLabs, a similar-sized dynamic creative optimization (DCO) software provider from San Francisco.
The two providers had partnered for about a year before the acquisition. Now, they plan to combine DataXu’s programmatic marketing platform and algorithmic optimization and JasperLabs' real-time ad creation capabilities, company representatives said.
"We were attracted to JasperLabs because of its dynamic creative optimization software," Shane Keats, senior director of product marketing for DataXu, told CMSWire this week. "DCO enables digital marketers to change the creative elements of an ad in real time."
About a year ago, DataXu and JasperLabs partnered on campaigns for customers like Essence Digital and BSSP.
What is its vision of "programmatic marketing"? DataXu told us last fall it's the "marketing practice that rewires marketing via the application of anonymized consumer data and marketer specific business rules (via algorithms) to make a marketing campaign smarter & more effective."
Enter JasperLabs to the DataXu picture.
"We have worked with JasperLabs for more than a year, but with this acquisition, the JasperLabs software will be integrated directly into the platform, enabling the seamless application of its capabilities to programmatic buys," Keats told CMSWire. "Stand-alone dynamic creative is a powerful tool, but when it’s integrated into a comprehensive platform like DataXu’s, marketers can go the last mile and deliver brand stories in a more impactful and highly targeted way because they are based on data science."
DataXu would not disclose the price of the acquisition when asked by CMSWire. It received $27 million in funding a little more than a year ago to expand its global presence and company.
Asked about integration with JasperLabs, Keats said DataXu's confident it will be seamless because of the already-established partnership.
"Because we’ve been jointly servicing clients for more than a year," he said, "we do not anticipate any problems with this integration."
So if software is the world's population, digital marketing could be China. There's a lot here. What makes DataXu stand out now, we asked?
"We believe that our offering, especially when applied to our integrated stack, is significantly more advanced than our competitors," Keats said. "Our intel tells us that we will be the only DCO vendor that can apply the tools to video and mobile creative, the only one that can use DCO for prospecting rather than retargeting, and, along with Google, the only who can apply it to guaranteed, direct buys."
DataXu told us its client mix includes more than 700 brands and agencies, including Fortune and Global 50 customers as well as national and regional powerhouses, AORs from the big agency holding companies and independent firms.
It charges a technology fee for use of the software, and services fees if its clients use it to execute their marketing campaigns. It did not disclose an actual price.
DataXu's been around since 2009. JasperLabs will be swept into the DataXu brand.