The demand-side platform Simpli.fi has acquired The Advantage Software Company, which helps advertising companies and marketers automate their workflows, for more than $ 100 million.
This acquisition allows Simpli.fi, a DSP that focuses on local advertising, to begin offering media buyers customizable systems that help streamline planning, accounting and reconciliation practices.
Frost Prioleau, CEO of Simpli.fi, said media agencies have been asking – especially over the past year – for more solutions to improve the effectiveness and efficiency of their marketing campaigns, which have made the ‘subject to more scrutiny as budgets have tightened given the financial blow from the pandemic.
Due to the pandemic, advertising technology mergers and acquisitions slowed down 46% in 2020 compared to the previous year, according to investment bank Luma Partners. However, with digital ad spending on the mend, the deployment of vaccines and the growth of channels such as smart TV and audio, the company expects strong commercial activity in 2021.
Prioleau said Simpli.fi got off to a very good start in 2021, “way beyond” where it was at the start of 2020.
“This acquisition demonstrates our shared commitment to assist agencies with centralized solutions for the management of all types of media, and in particular underlines our goal of providing innovative tools for the management of broadcast and digital media,” said Ellen Coulter, president of Advantage Software, in a statement. “It also strengthens our efforts to provide a robust, all-in-one solution for total agency management, across all areas of operations, with a focus on the future.”
Coulter will remain President of Advantage Software and run it as a separate business unit. The 40 employees of Advantage Software will join the Simpli.fi workforce, which has approximately 340 employees.
The acquisition also aims to help automate the purchase of digital and traditional media, an important step in the same the long-standing TV advertising model is fundamentally changing given the shift of consumers to streaming.
For example, Simpli.fi has seen a significant increase in CTV advertising on its platform, with spending in this category increasing 145% between January and October 2020. Prioleau said CTV is the fastest growing medium on the platform.
The CEO of Simpli.fi added that many agencies are looking for ways to buy audiences seamlessly on linear TV and smart TV.
“Part of the workflow here is absolutely TV related and makes it easy for TV buyers to allocate budgets, [shifting] from linear to connecting television depending on where their audience is, ”Prioleau said.
Likewise, Mediaocean, a major media platform for planning and reconciliation, bought 4C for around $ 150 million last July to adapt to the evolution of the television landscape.