Perion Acquires DOOH Platform Hivestack for USD $100 million
Perion Network, which uses technology to connect advertisers and consumers across all major digital channels, announced that it has successfully acquired Hivestack Inc. Hivestack Inc. is globally recognized for its innovative full-stack programmatic digital out-of-home (DOOH) offerings. The deal includes a three-year employee retention and performance-based payment plan worth up to $25 million. Furthermore, it also includes US $100 million in cash paid at closing.
Perion’s Acquisition of DOOH platform Hivestack
Ordinary public spaces are transformed into dynamic experiences with DOOH advertising. It engages audiences with personalized, attention-grabbing content in real-time. Using state-of-the-art technology, it targets, delivers, and measures memorable, immersive advertisements that establish a connection between brands and consumers on the go. With the acquisition of Hivestack, a pioneer in programmatic DOOH technology since 2017, Perion is positioned to take advantage of its expected growth and enter an exciting new market.
A broader reach, a broader technology base
- The cutting-edge platform from Hivestack is in use in 32 nations throughout North America, EMEA, LATAM, and APAC. With this global reach, Perion will be able to take advantage of economic trends that affect advertising budgets around the world. Furthermore, it will also be able to provide a range of solutions in these new markets.
- This deal makes a substantial contribution to Perion’s diversification strategy. It will allow the establishment of a significant presence in the rapidly expanding DOOH channel. It is expected to grow at a 15.3% CAGR from US $21.5 billion in 2023 to US $30.7 billion in 2026, as per a PQ Media research report.
- Hivestack provides media owners with a range of specially designed software, such as the Head Bidder, SSP, and DOOH ad server. These are intended to manage, deliver, and optimize targeted advertising on digital screens to efficiently source demand and increase yield.
- In addition to tools for audience planning and campaign measurement, Hivestack’s DOOH DSP offers media buyers strong capabilities for locating ideal inventory and optimizing the efficacy and return on investment of DOOH advertising campaigns.
- This acquisition aligns well with Perion’s retail network strategy. Moreover, it is anticipated to generate opportunities for synergy with the company’s current advertising offering and business.
Read More: Hivestack Partners with Up Media to Expand Thai DOOH Market Share
Hivestack’s DOOH capabilities
GroupM, Dentsu, Uber, Colgate, Lego, InterContinental Hotel Group, Doordash, The Trade Desk, Xandr, Clear Channel, Lamar, and Stroer are among Hivestack’s agency, brand, ad-tech partner, and media owner clients. Perion serves clients like DraftKings, Kroger, Albertsons, BMW, HBO, and Nike. Through the acquisition, Perion will be able to expand its DOOH capabilities. Perion operates in all of the major digital advertising channels, including search, social, display, video, and connected TV. Perion has a $1.3 billion market capitalization and trades in both New York and Tel Aviv. Unlike many tech companies, Perion has produced positive returns over the previous five years.
Here’s what they said
Tal Jacobson, CEO of Perion said
We are excited about the acquisition of Hivestack, which both complements and advances our long-term growth strategy. Hivestack’s DOOH technology platform stands out by offering brands and advertisers what they crave the most: high-visibility creative, precise targeting, immediate impact, wide reach and measurement. In addition to advancing our diversification strategy, this transaction aligns with our objective to expand our technological capabilities and product offerings, and we will continue to pursue additional inorganic growth opportunities. We welcome Hivestack and its impressive team of professionals to Perion. We look forward to capitalizing on the synergies between Hivestack’s technology and Perion’s existing solutions, to provide clients an even more comprehensive, end-to-end offering.
Andreas Soupliotis, Founder and CEO of Hivestack, stated,
Joining Perion marks a significant milestone in our journey. The strength of our technology, coupled with Perion’s market expertise and compelling advertiser solutions, will result in new synergetic solutions that resonate with customers on a worldwide scale. We are thrilled about the endless possibilities that this unlocks.
Read More: Yahoo Partners with VIOOH for prDOOH and Twilio for First-Party Ad Reach
Hivestack partners with Up Media to Expand Thai DOOH Market Share
The world’s top independent programmatic digital out-of-home (DOOH) ad tech business, Hivestack, has increased its market share in Thailand. In order to achieve this, Up Media, a renowned media owner who specializes in elevator screens, recently developed a DOOH relationship with the company. As a result of this partnership, 2,000 Up Media DOOH screens on elevators will connect to Hivestack’s Supply Side Platform (SSP). These displays can be found in upscale shopping centers, business buildings, hotels, and dwellings. Furthermore, buyers in Southeast Asia will have access to it immediately. Additionally, the Private Marketplace (PMP) and Open Exchange agreements will make it accessible to everyone worldwide.
Thailand Projected Ad Spend
The anticipated DOOH ad spend in Thailand alone is expected to reach USD 213.20M in 2023 with a 6.01% annual CAGR. Furthermore, the projected market is also expected to reach USD 269.30M by 2027.
Hivestack Expands DOOH Marketplace
The Hivestack platform had produced 14.4B monthly impressions over an amazing network of DOOH inventory in Thailand before the arrival of Up Media. They included billboards, metro systems, commercial centers, and train stations found in Phuket, Bangkok, Chiang Rai, and Chiang Mai. With the addition of Up Media’s most recent elevator screens, Hivestack is now able to offer DOOH purchasers in Thailand a degree of audience interaction that is unheard of. Additionally, it opens up a new source of income for Up Media from global outside-in purchases.
Read More: Vistar Media Enhances DOOH Advertising with Retail Inventory Package
Hivestack in Thailand
In March 2022, Hivestack began operations in Thailand. Since then, it has significantly expanded its market share by working with the main media owners in the nation. It has also worked to promote several brands through interesting programmatic DOOH campaigns. The top food and beverage company in the nation, Bar.B.Q. Plaza, turned to Hivestack in September 2022 to promote brand awareness, produce creative campaigns, and boost foot traffic to its outlets. The end product was a fascinating, interactive programmatic DOOH activity that reached over 4 million people at 16 BTS key train station sites.
Here’s what they said
Joey Zhou, Founder & CEO, of Up Media said,
We are excited to collaborate with Hivestack and we are going to scale up our inventory – aiming to triple it in the next 12 months. Exciting times ahead as we are offering advertisers impactful media for high end audiences in the best locations across Thailand.
Jan Harling, CEO, of Virtus Asia Consulting (local consultancy for Up Media) added,
I am confident that many marketers with a focus on premium audiences will view the availability of this inventory, now accessible programmatically, as a game-changer in Thailand. This opportunity aligns perfectly with Thailand’s recovery, marked by bustling shopping malls and offices returning to their full-capacity state. It promises a significant shift in the landscape of impactful media opportunities.
Matt Bushby, Managing Director ANZSEA, Hivestack commented,
It’s been an incredible journey for us in Thailand with the amount of growth we’ve achieved with our partners. We’re so proud to be building the largest DOOH inventory network and are proud of the large number of successful brand campaigns we have under our belt already in the region. Our partnership with Up Media comes at an exciting time for our business as we onboard more screens in different formats across Thailand, located in Bangkok, Chiang Mai, Chiang Rai, and Phuket.
Read More: Moving Walls Teams Up with Place Exchange for Global DOOH Inventory
