Lock, stock and single stack: Singtel shows intent with Adconion buy

By Brendan Coyne | 12 June 2014
 
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Google, Microsoft, AOL and now Singtel. The ad tech stack war is on in earnest as telcos tool up to take on the biggest tech companies in trying to own digital advertising lock, stock and single barrel.

SingTel, the Singapore-based network that owns Optus and is bullishly investing an ample cash pile into dozens of technology businesses, yesterday said it had signed agreements to acquire ad platforms Adconion and Kontera for a combined sum of US$385million. The deals were done via its subsidiary Amobee.

The company wouldn't say much other than it expected everything to be wrapped up by the end of the fiscal year. Adconion will be acquired at a valuation of US$235 million and Israeli digital content intelligence and marketing technology firm Kontera for US$150.

"The digital advertising business is about scale," said Amobee CEO Mark Strecker. Kontera CEO Yoav Shaham said data underpinning that scale was the "essential ingredient to successfully reach the right customers with the right message at the right time".

Locally Adconion Australia boss Matt Hunt said he couldn't comment as it was Amobee's deal. But speaking to AdNews in April he pointed out that the cross channel audience platforms would win out. That appears to be what Singtel is building in a major play for digital eyeballs: a single stack wrapping in display, social and video. Plus mobile and very reliable customer data.

The big guns are all trying to turn themselves into media and advertising companies with a single solution (hence AOL's acquisition of Adap.TV and subsequent One launch) and it is the likely future for telcos that don't just want to be carriers for everybody else's business.

The data that they hold and their scale makes them attractive to brands. When approached, then they can also offer display and in turn video (Singtel has also been investing in video ad capability via TubeMogul).

The next wave for all those players, despite what some say about not being content creators, could well be in house studio capability as the video on demand market starts to ramp up proper.

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