Tremor’s acquisition of Amobee is all about plugging holes and getting scale

Druker offerCEO Tremor International has embarked on a journey to rebuild its business with assets on both the buy and sell side of digital media. With its acquisition of Amobee on Monday, Tremor is making

Tremor International has embarked on a journey to rebuild its business with assets on both the buy and sell side of digital media.

With its acquisition of Amobee on Monday, Tremor is making a breakthrough in linear inventory.

Amobee is a buy-side platform that got its start in mobile before moving into connected TV and creating technology to unify the CTV and linear buying and selling process.

With Amobee in its stack, Tremor aims to cement its position as an end-to-end omnichannel media buying solution, Ofer Druker, CEO of Tremor International, told AdExchanger.

Wall Street is satisfied enough, for now – shares of Tremor rose 2% on Tuesday, following the company’s quarterly earnings report the day after the announcement.

For reference, Tremor sold its DSP to mobile advertising platform Taptica in 2017, which later rebranded itself as Tremor Video. Although Tremor sold its original retail business (which eventually became part of Magnite) around the same time, it purchased another SSP, Unruly, in 2020.

Druker spoke with AdExchanger about the company’s plans for its latest acquisition.

AdExchanger: Tremor already has a DSP. What does Amobee bring new to Tremor’s demand-side business?

OFER DRUKER: Amobee has a lot of capabilities that we don’t have.

On the one hand, Amobee has a very strong self-service platform, which we only started building as a solution just two years ago. Amobee’s self-service offerings are much more mature than ours – not just the platform itself, but all the surrounding support, training, and tools needed for customers to run the system effectively.

Amobee’s DSP is also more robust omnichannel, while Tremor was strictly video only until last year, so this will help us open up new channels for customers who already work with us on video.

Moreover, we are not very efficient. Tremor is more of a branding company, while Amobee is more focused on measurement and attribution. And we’re very aware that DTCs and performance marketers are starting to spend more on video, especially on CTV.

What business opportunity do these new capabilities bring to Tremor?

Tremor will be able to focus on linear spenders.

Amobee extended its mobile measurement strategy into advanced TV when it bought video advertising platform Videology in 2018 – but working with broadcasters is new to us.

However, Linear is still connected to what we do at CTV today, as broadcasters are also increasingly involved in the digital business. Overall, DTC marketers are turning to CTV.

But when Tremor didn’t have linear technology, we acquired the CTV ad server Spearad last year to help linear broadcasters expand their purchases to CTV. Integrating Amobee’s technology into ours will create a more self-service omnichannel DSP that will help bridge the gap between broadcast and digital performance for linear buyers.

Will there be friction between the two DSPs that Tremor now owns?

No, we don’t anticipate any cannibalization between companies as we don’t have a lot of customer overlap with Amobee.

Amobee primarily works with local agencies in the Midwest and Western United States, while Tremor’s business model is more national.

Our businesses are more complementary than competitive. It’s a way to enhance our CTV offerings for our combined customer base.

Does Tremor view this acquisition as another step towards optimizing the supply path?

Yes, because our end goal is an end-to-end solution. We have a DSP and an SSP, so most of our business activities already take place within our own platform.

The addition of Amobee’s demand-side offers expands our buy-side scale, giving advertisers better reach, accuracy and overall profitability.

Have you found that customers are skeptical of companies that represent both ends of the supply chain?

No, we haven’t had any problems with customers because an end-to-end solution makes their lives easier. Centralizing buy-side and sell-side offers simplifies the media planning process and keeps prices low.

A technology stack that has both a DSP and an SSP on the same platform is also less affected by cookie staleness and other forms of signal loss from other third-party data sources.

Also, today’s companies don’t really offer exclusivity. Either way, they are testing and running campaigns with several other partners.

This interview has been edited and condensed.