Rubicon Project acquired search and website retargeting firm Chango in a $122 million cash and stock (but mostly stock) transaction, the companies said Thursday. (Read the investor release.)
"There’s one area of the market we haven’t addressed in the past, and that’s intent marketing," Rubicon CEO Frank Addante told AdExchanger. "If Google has the platform for search, we can be the platform for the rest of the market."
The acquisition gives Rubicon a foothold in intent marketing: Toronto-based Chango combines search query data with behavioral and contextual data to conduct programmatic campaigns on behalf of its advertiser and agency customers. It buys the search data or uses the advertiser's own data.
Chango has approximately 150 employees.
“Rubicon started as an SSP and now they’re moving to the buy side of the equation,” commented Sameet Sinha, a senior equity analyst at B. Riley & Co, on the acquisition.
Rubicon "can now take their technology and give it massive scale," Addante said.
Rubicon estimates the intent marketing business is worth $35 billion in retargeting and keyword and contextual targeting budgets. Post-acquisition, Rubicon "can now take their technology and give it massive scale," Addante said.
The acquisition will build out Rubicon's Buyer Cloud, but also "will be rolled out across the entire platform, and be made available to DSPs," Addante said. "We want to bring these capabilities to all buyers and sellers in your platform."
Addante underlined in a call to investors that it did not intend to replace DSPs – important customers for Rubicon – with Chango’s technology.
Continue reading »