Israeli digital advertising company Matomy Media Group has acquired a controlling stake in Avenlo, a Toronto-based email optimization platform provider. No financial terms were disclosed. Matomy’s shareholders include Viola Private Equity.
TEL AVIV and TORONTO (15 April 2015) — Matomy Media Group (LSE:MTMY), one of the world’s leading digital performance-based advertising companies, today announces a strategic investment in leading performance email marketing and ad targeting company Maven Marketing Group Inc., which operates under the name Avenlo. Matomy has acquired a controlling 70% interest in a newly formed company that has purchased the principal business activity and operations of Avenlo, with the option to acquire the remaining 30% of the company that is currently held by Avenlo over the next three years.
Through this investment, Matomy will enhance its existing email acquisition marketing capabilities, whilst also providing its advertising clients with innovative cross-device ad targeting and data management solutions. Avenlo will continue to be led by its co-founders — Rafael Alter, Chris DeDiego and Joseph Freiman — who will work in synergy with Matomy’s global management team.
Commenting on the investment, Matomy CEO Ofer Druker said: “One of our strategic priorities is to invest in companies that will further build the growth and value of our business. Avenlo has developed proven innovative technologies and solutions to email acquisition marketing, ad targeting and data management that will help fuel further growth in these important areas of our business. Data is a crucial element in performance-based advertising, and the data capabilities that Avenlo provides will assist Matomy across all of our media channels. We look forward to working with the Avenlo management team to help it expand into new international markets and together build the global leader in email acquisition marketing”.
Freiman, Avenlo co-founder, added: “We’re excited to join forces with Matomy, given its track record of success in performance-based advertising. Avenlo is poised for significant growth, and by leveraging Matomy’s international reach and infrastructure, as well as its customer network, we will continue to accelerate our growth and expand into new international markets through the deployment of innovative technology and capabilities”.
Matomy’s strategic investment in Avenlo follows two other recent international partnerships. Last October, Matomy entered into a strategic affiliation with leading global advertising company Publicis Groupe, and last November, the company acquired mobile programmatic advertising platform MobFox, which now forms the core of Matomy’s mobile performance advertising solution.
Matomy’s investment in Avenlo is in line with the Group’s long-term growth strategy, in which Matomy seeks investment or partnership opportunities that will help strengthen its capabilities in one or more of its strategic growth activities (mobile, social and video advertising) to further build the growth and value of its business.
Avenlo brings significant real-time, data-driven ad targeting and media buying capabilities to Matomy, and will materially strengthen the Group’s existing email acquisition marketing solution. Forrester Research estimates that US advertiser spend on email marketing services will top $3.2 billion by 2019. Revenues in Matomy’s existing email marketing business increased 26% in 2014.
The investment also enhances Matomy’s performance-based advertising capabilities in the key Americas market (including North and South America). Revenues for Matomy in the Americas increased by 29% to $149.2 million for the year ended 31 December 2014 (FY2013: $115.8 million).
Founded in 2012, Avenlo’s state-of-the-art email placement optimisation platform provides advertisers, agencies and media buyers with sophisticated multi-screen ad targeting capabilities that deliver awareness, engagement and consumer action across all devices. The Avenlo Connect Platform enables brand-safe email acquisition marketing campaigns on a cost-per-thousand impressions (CPM), cost-per-click (CPC) or cost-per-action (CPA) basis.
The Avenlo email optimisation platform utilises large sets of customer data and performance-driven algorithms to improve advertisers’ reach and return on investment for performance-driven email marketing campaigns. Avenlo’s innovative consumer profile creation process combines live user actions with behavioural and demographic information and sophisticated statistical modelling algorithms to predict the likelihood for a specified consumer action.
Avenlo works with many of the world’s leading marketing agencies and top brands across various industries, including telecommunications, travel, finance, insurance, online services and retail.
About Matomy Media Group
Matomy Media Group Ltd. (LSE:MTMY) is one of the world’s leading digital performance-based advertising companies. Working across Web, mobile and social media platforms, Matomy offers advertisers, media partners and publishers a range of opportunities to generate risk-free performance-based results, delivering quality, scale and speed by providing a single gateway to all digital media channels. Matomy’s marketing solutions include: a display ad network; mobile, social and video advertising; email marketing; search marketing and search engine optimisation; an incentivised advertising platform; and domain monetisation.