MediaMath seals $225m financing for AI ad tech and tactical mergers
MediaMath, a long-time pioneer in programmatic advertising, has announced $225m (£170m) in new financing, courtesy of Searchlight Capital Partners.
The windfall brings the ad tech company’s total funding to over $607m (£458m), according to Crunchbase.
Delivered in two tranches, this will provide the “strategic growth capital” needed to accelerate the expansion of its DSP (demand side platform) - which allows brands to buy ads using automated systems - and DMP (data management platform), which brands can use to store and analyse data.
In a statement, MediaMath said that the financing put it in a strong position for “product innovation and consolidation”.
The former of those include reengineering the infrastructure that connects consumer touchpoints - including activity within connected TV and digital out-of-home advertising (OOH) - and accelerating the adoption of AI (artificial intelligence) in a partnership with IBM, calling the technology in marketing a “prerequisite to driving real business outcomes with consumer respect at scale”.
On the consolidation front, acquisitions are also set to play a big part in those advances. Franklin Rios, global head of corporate development and M&A, said; "MediaMath is executing on a successful and accelerated growth plan that has been facilitated by both organic investment and M&A.
"Searchlight's investment will ensure that we continue on our path of consistent and profitable growth, with the support of a long-term, strategically oriented partner."
According to The Drum, the group’s seed venture fund MathCapital is understood to 10 investments this year, including that of one of its investors - tech investor Safeguard Scientifics - joining a wider narrative of ad tech consolidation headlined by the recent billion-dollar acquisition of AppNexus by AT&T.
Founded in 2007, MediaMath claims to serve over 9,500 marketers per day across 42 countries to launch, analyse and optimise digital ad campaigns across mobile, video, audio, social, native, digital OOH and advanced TV formats.
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