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Martech Firms Making Deals to Strengthen Offerings

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This summer brought two significant deals in the martech space, both aimed at improving offerings and service for brands that use programmatic.

Rubicon Project acquired nToggle for $38.5 million in a move to bolster its header bidding tech and differentiate itself as consolidation in its sector looms.


NToggle uses machine learning to automatically filter out available impressions that weren't relevant to marketers making ad buys through header bidding tech -- culling as much as 80% of the flood. While header bidding is known to increase revenue for publishers by letting them take bids from multiple pools of buyers at once, less-known is the strain it puts on platforms for buyers. The tech can increase the amount of impressions seen on demand-side platforms by as much as 100% or more, many of them duplicates. Accommodating the strain requires a significant investment by DSP operators, which can spend anywhere from hundreds of thousands to tens of millions of dollars simply to do business in the header bidding era.

The very next day, Sizmek announced it had agreed to buy Rocket Fuel in a $145 million deal. Sizmek bought Rocket Fuel to bolster its media sales capabilities.

Randy Wootton, CEO of Rocket Fuel, previously told Ad Age in a April 2016 interview that consolidation in the industry was imminent, going as far as calling it an "ad tech armageddon."

"There are 4,000 ad tech companies in the Lumascape," Wootton previously told Ad Age. "Four thousand ad-tech companies all trying to get their little piece. A lot of them are public, but there isn't a lot of money out there for these ad tech companies to come out and build their next new thing."

"They're going to consolidate, get rolled up and disappear," Wootton said. "And you're going to see this shake out because the ecosystem and the value chain cannot split up the dollar 4,000 ways."

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