Ad-buying platforms can’t just be ad-buying platforms anymore.
Simpli.fi, a DSP that focuses on local advertisers, has acquired The Advantage Software Company, a SaaS ERP (Enterprise Resource Planning) platform. The deal is for more than $100 million, according to Adweek. The combined company will feature nearly 400 employees and serve over 1,000 ad agencies and media buying firms.
Simpli.fi is an agency-focused platform that helps deliver local campaigns programmatically across most channels — mobile, video, display, native, and OTT/CTV. OTT and CTV is a growing area of focus for the company. Per their website, the way Simpli.fi’s technology works is by harnessing GPS data “to serve ads to individual households based on first-party address lists, custom curated addressable audiences, or behavioral data.”
In a report released in October, Simpli.fi noted that by September, OTT and CTV ad spend through its platform had grown 145% since the start of 2020, and 166% year-over-year. In 2021, those numbers could grow further as local advertisers become more comfortable OTT/CTV buyers.
With the acquisition of The Advantage Software Company, Simpli.fi is evolving beyond its DSP roots and will now offer software to streamline and optimize agency workflows in planning and buying, tracking, accounting, and reconciliation. Advantage works across all media types, including OTT/CTV.
Ultimately, the point here is for Simpli.fi to become a more differentiated and sticky vendor for its agency clientele. There are no shortage of DSPs in the market today. For Simpli.fi to standout to their audience, they are looking to create an even stronger agency mousetrap, layering ERP on top of their ad-buying tools.
“We are very excited to welcome the Advantage team to Simpli.fi,” says Frost Prioleau, CEO of Simpli.fi. “Together we will continue to focus on making our customers more successful by delivering integrated omni-channel workflow across both traditional and digital media, as well as continuing the development of Advantage’s suite of agency management software. We welcome the entire Advantage team to Simpli.fi and look forward to working together with this talented group.”
Ellen Coulter, President of The Advantage Software Company, says: “This acquisition demonstrates our joint commitment to helping agencies with centralized solutions for managing all media types, and especially highlights our focus on providing innovative tools for managing broadcast and digital media. It also furthers our efforts to provide a robust, all-in-one solution for total agency management, in all areas of operations, with a focus on the future.”
In 2021, we could see more DSPs make moves like this, especially given inventory overlap across platforms. Being truly unique on media alone is a challenge. Enhancing your value proposition beyond inventory, buying and bundling additional, complementary technologies is a smart strategy.
