M&A is in the air, baby.
Magnite, one of the largest SSPs, has just announced it acquired streamr.ai, an AI adtech startup that builds video creative tools for CTV with a focus on SMBs.
Why This Matters:
Over the past year and a half, a number of players in the CTV space—from Roku to Comcast—have launched tools aimed at democratizing and simplifying CTV media buying for SMBs, while emphasizing performance (a top concern for small businesses). streamr.ai tapped into that trend, offering creative tools to help SMBs build campaigns more easily as the opportunity to buy CTV media has increased.
With this deal, Magnite will likely look to expand its reach among SMB and mid-market customers while integrating streamr.ai’s tech across its broader adtech ecosystem. In short, as CTV increasingly targets SMBs, Magnite sees an opportunity.
Michael Barrett, CEO of Magnite, touched on the SMB opportunity during the company’s latest earnings call:
“We see the SMB segment exploding over the next three to five years through newer specialized DSPs like TV Scientific, VIBE, Streamer and more. And they’ll all need access to premium CTV supply through an integrated ad server and SSP. That’s exactly where Magnite is positioned to lead with its SpringServe product.”
Experts React:
Here’s what Barrett said about the deal in the company’s press release:
“The CTV advertising opportunity for small businesses is enormous, but it’s been bottlenecked by complexity and high costs. streamr.ai’s technology uses AI to accelerate this transition for SMBs, making tasks like CTV creative generation and campaign setup much easier.”
And here’s what Jonathan Moffie, streamr.ai’s co-founder and CEO, had to say:
“Magnite shares our vision for helping small businesses grow revenue through CTV advertising, and their relationships and resources will enable us to accelerate that process.”
Terms of the deal weren’t disclosed.
Our Take:
SSPs feel like they’re out-innovating other parts of the adtech ecosystem right now, no? Curation, tools to democratize CTV, performance solutions for CTV, and now possibly some AI M&A. A deal like this gives Magnite immediate AI bona fides (FWIW, creative AI tools often seem sexier than backend AI targeting or quality control tools).
Also, a few days ago, we reported on a funding crunch in the market and noted that M&A was likely as larger adtech companies look to scoop up smaller players. Is that starting to play out?
