Native formats are especially important as consumers spend more time on mobile devices. Singolda expects native and video formats to dominate in mobile environments. Taboola is focusing on the native opportunity for now. More than half its revenue is mobile today, Singolda said.
It also provides buyer an alternative native option to walled garden search of social environments. "Through open partnerships like AppNexus and Taboola, programmatic buyers have more choice in purchasing native inventory beyond just search and social," noted Andrew Eifler, AppNexus VP of product.
For publishers, the deal offers a new source of revenue. They will have full control over what types of ads appear in their widgets, the same way they do today. To start, Taboola will also manually evaluate deals as they come through to ensure quality.
There may be more deals like this on the horizon. “Our hope is to find scale with a few strategic partners, AppNexus being one of them,” Singolda said.