Consolidation in adtech continues as Otello’s ad network AdColony has been acquired by mobile app preloading company Digital Turbine for a total of $400 million. Both companies are publicly held.
Mobile app preloading is a delivery service that allows mobile operators to manage applications uploaded to a phone upon first boot. While a user’s phone is engaging in its initialization process, the mobile applications that are specific to that user’s demographic are downloaded onto the device. It’s typically offered by service providers at a cost-per-install payment plan that allows advertisers to take advantage of the delivery system. It can be a highly cost effective option for user acquisition and app delivery in the digital age.
Digital Turbine’s technology is used by more than 40 mobile operators and OEMs worldwide for mobile app preloading on Android devices. The platform helps them drive ad revenue by creating app content discovery experiences at device activation (device setup screen, curated app list, etc.) and on an ongoing basis (via home screen, toolbar, notifications, etc.). Digital Turbine is also used on the other side, by advertisers, who can promote their apps and content through these formats and moments. To date, Digital Turbine says it has delivered over three billion app preloads for operators, OEMs, publishers, and advertisers.
According to the two companies, the deal for Otello’s AdColony centers on the company’s mobile video advertising capabilities, specifically its Instant-Play technology. AdColony says Instant-Play is designed to ensure video ads always play smoothly, reducing load time on video ad playback in apps, regardless of connection strength or device type.
“AdColony saw the secular tailwinds toward mobile, video and high-speed networks like 5G before most and has been able to capitalize on its vision,” said Bill Stone, CEO of Digital Turbine, in the deal’s press release. “We look forward to welcoming the AdColony team to the Digital Turbine family and believe that this strategic transaction accelerates our growth and is a positive for our partners, advertisers, employees and shareholders.”
“Digital Turbine offers many complementary and additive solutions to AdColony’s performance business, while we bring an industry-leading SDK footprint and a mature and thriving brand and agency team to the partnership,” said Jude O’Connor, AdColony’s CRO. “When you combine the reach and capabilities of both companies, you have a powerful platform that will drive growth and outcomes for any buyer that participates in the mobile app economy.”
“AdColony is excited to join the successful team at Digital Turbine. The underlying strategic rationale for the combination is very promising,” said AdColony CEO, Lars Boilesen. “We believe that Digital Turbine, with its massive user base, extensive global relationships and distribution, will be uniquely positioned to benefit via the seamless integration of AdColony’s mobile video advertising expertise and global brand advertiser awareness. The combination will yield a highly-differentiated and more vertically-integrated solution for the mobile advertising industry. We look forward to joining Digital Turbine to help navigate this innovation.”
AdColony has been in the adtech space for a decade, starting as Jirbo, a mobile game developer, then transitioning to an ad network. It was acquired by Otello in 2014. Otello is a collection of digital companies — AdColony, Bemobi and Skyfire.
