Why Millennial Media Bought Jumptap: The Mobile Ad Market Is Going Automated
Company Hopes to Launch Mobile Exchange in Q4
By: Tim Peterson Published: August 15, 2013 Advertising Age
Mobile advertising is hot. But mobile ad networks are struggling. There's no clearer example of that than Millennial Media, which became the first publicly-traded mobile ad network in 2012.
But while mobile seems to be working for some -- ie: Facebook -- Millennial Media's stock is down 47% since it listed in March 2012. Wall Street isn't wild about the fact that its ability to grow is closely tied to headcount as deals as the majority of Millennial's business is still people striking deals with publishers and advertisers.
Millennial Media CEO Paul Palmieri On Tuesday, Millennial completed a deal in hopes of changing that, paying $225 million in stock for a one-time competitor, Jumptap. Once a mobile ad network, Jumptap changed course two years ago to embrace an automated approach, reinventing itself as firm selling direct-response advertisers and agencies tools to buy mobile ads in real-time auctions.
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