How Claritas aims to bring Google and Meta AI marketing capabilities to other forms of media

Claritas has acquired ArtsAI, the fastest-growing ad tech company on the Inc. 5000 list, in a deal that unites two of the top independent players in podcast and audio measurement and will bring artificial intelligence to bear on customized creative and media plans. The deal could help democratize the ad business by bringing AI-driven customization capabilities—now dominated by industry heavyweights Google and Meta—to placements with other media players, according to executives of Claritas and ArtsAI. Ad Age Media Summit Hear from industry leaders during October event in NYC Register here Claritas has a proprietary identity graph based on household addresses and a widely used Prizm consumer segmentation system. Through a series of what is now four acquisitions in five years, it has built a targeting, attribution and campaign optimization business. Private equity firm The Carlyle Group owns the company and is backing the deal, the terms of which were not disclosed. ArtsAI is focused on using AI and machine learning to measure website and mobile app conversions and provide insights, analytics and optimization to boost return on ad spending. Collectively, the companies have more than 1,300 clients, including Horizon Media, WPP’s Mediacom, Omnicom Media Group’s Hearts & Science and audio publishers iHeartMedia and SXM Media. Claritas has been building itself from purely a consumer segmentation business into a “full-service closed-loop marketing platform” with tools to help identify, target, enable delivery of media and optimize media to key consumers, said CEO Mike Nazzaro. Acquiring ArtsAI “will give us a significant advantage in the field of AI-based marketing measurement and optimization.” Democratizing ad business The acquisition will help Claritas use AI to optimize campaign creative for target consumer segments plus expand capabilities broadly, he said. ArtsAI Chief Revenue Officer Erik Lundberg brought up the possibility of using AI to identify a cohort of soccer moms who like to travel, then delivering a Peloton ad showing a woman on a bike with European scenery playing on the exercise bike’s screen. Ultimately, ArtsAI and Claritas tech combined will “democratize the advertising business,” he said. “Facebook and Google account for approximately 50% of all ad dollars,” Lundberg said. “You know why? Because they’ve got great data, measurement and delivery, and they have these personalization and optimization technologies. No one else does. But with these two companies coming together with the advanced data and AI personalization, we can bring those advanced technologies to the rest of the market.” Also read: How Meta, Google and Snap are embracing generative AI Claritas’ acquisition of ArtsAI “creates something very unique,” Jim Brennan, senior partner of Boston Consulting Group, said in a statement. “The proprietary capabilities Claritas will now bring to the market provides the advantages of AI across the entire marketing lifecycle, from customer identification and message delivery to campaign measurement and ROI optimization.” Brennan said the acquisition “will deliver product advancements that do not exist today.” Combines audio measurement players Among other things, the two companies have been building their podcast measurement business in the wake of media-side player Spotify in 2021, acquiring two of the top measurement companies in the fast-growing segment, as some clients sought out third-party measurement alternatives. Lundberg noted that the companies also have become major players more broadly across streaming audio and are preparing to expand audience measurement to satellite and terrestrial radio where Nielsen historically has been the dominant player. “Combining the proprietary capabilities of Claritas and ArtsAI offers significant value for the marketplace,” says David Shiffman, executive VP of research and measurement at iHeartMedia, in a statement. “This acquisition showcases Claritas’ commitment to evolving audio measurement and helps ensure that publishers and marketers have access to strong, independent, third-party measurement of audio advertising.” “We are big believers in an open ecosystem and transparent third-party measurement,” said Keri Degroote, senior VP of sales research & analytics at SXM Media. “So we’re thrilled to see two of our key collaborators in Claritas and ArtsAI join forces to create an even stronger, more seamless option that will deliver for both our business and our clients.” Media measurement blog Tracking TV, social and digital updates Click here

How Claritas aims to bring Google and Meta AI marketing capabilities to other forms of media

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