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The Trade Desk announces plans to acquire Sincera - adtechsolutions

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The Trade Desk announces plans to acquire Sincera


Trade Desk intends to acquire advertising data firm Sincera, only its second acquisition since it launched in 2009 — a rare move for a company that typically builds, not buys.

Financial terms were not disclosed, but after the deal closes, expected in the first quarter, Sincera co-founder and CEO Mike O’Sullivan will report directly to The Trade Desk CEO Jeff Green.

Why TTD is breaking its ‘build over buy’ habit

The move equips the ad tech vendor with more data to convince publishers that ads running on its platform will outperform the rest of the programmatic market. In fact, Sincera’s data powered The Trade Desk’s recent “Retailers and Publishers,” which looks at where advertising value is migrating across the premium open internet.

“In recent years, the field of digital advertising has expanded rapidly with the emergence of new channels such as streaming television, digital audio and retail media. As the market grows and the supply chain seems increasingly complex, it’s important that advertisers can show publishers what data signals they need and value,” Green said in a statement. “By acquiring Sincera, we will bring this value to life in a way that will improve programmatic performance and significantly improve the quality of the data signals that advertisers receive from publishers.”

This last point highlights a more significant trend: sell-side targeting. Targeting has traditionally been the domain of demand-side platforms like The Trade Desk.

But as other ad tech players, such as supply-side platforms and curation specialists, hone their ability to replicate DSP-level targeting, the dynamic is shifting. The more targeting migrates upstream, the greater the risk to the profit margins of The Trade Desk, which relies heavily on selling audience data to advertisers — something it can’t do if the targeting happens elsewhere.

Sincera could help counter this risk. By enabling Trade Desk to provide advertisers with sharper information about impression value, it empowers publishers to use its platform instead of turning to competitors. This level of analysis created a gap in The Trade Desk’s efforts to find the best ad impressions outside the walled gardens, and Sincera is trying to fill that gap.

“Sincera has become the go-to resource for advertisers and publishers looking for objective data on ad value. We have maintained this objectivity by focusing on being an expert data company rather than a data provider,” said O’Sullivan. “We are excited to bring our perspective and insights to The Trade Desk. We share the belief that trust and growth in the programmatic ecosystem will be supported by a transparent and fair market based on objective data.”

Trade Desk isn’t usually an M&A player — its first and only other acquisition was AdBrain in 2017 — but when it comes to bolstering its data, the ad tech vendor seems willing to make an exception.

The researchers will also note how Sincera – a longtime darling of the sector that has received backing from several key industry brokers such as Aperiam, LiveRamp and NextView Ventures – previously benefited from The Trade Desk.

For example, The Trade Desk’s venture capital group TD7 participated in it, worth $7 million Sincera’s $4.2 million seed round at the end of 2023. This was two years after TD7’s initial investment in Chalice, a correlation that will likely guide such observers if The Trade Desk has more mergers and acquisitions ahead.

https://digiday.com/?p=565625



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