RTL Group And Amobee Form New European Tech Alliance
RTL Group and Amobee, a globally leading provider of advertising technologies, are establishing a European tech alliance. To this end, they are launching a joint marketing and service company combining the ad tech solutions of Amobee and the RTL Deutschland subsidiary Smartclip. It will be the first pan-European offering for automated access to addressable TV advertising.
RTL Group has announced a comprehensive cooperation with Amobee to strengthen their ad-tech businesses in continental Europe. As part of this cooperation, RTL Group and Amobee will establish a jointly owned sales and services company called TechAlliance, which will combine the ad-tech services of Amobee and Smartclip in Europe. The agreement is subject to regulatory approvals and expected to close in in the first quarter of 2022.
RTL Group and Amobee will align their product roadmaps to build an integrated ad-tech offering that unites the complementary strengths of their businesses. Amobee is a global leader in advertising technology for brands, agencies and major broadcasters including Univision, Fox and ITV. Through its demand-side platform (DSP), Amobee will gain exclusive programmatic access to the addressable TV inventory of broadcasting partners from RTL Group and Smartclip. Smartclip – part of RTL Deutschland – is a leading European provider for ad-tech solutions. Smartclip will provide specialist supply-side solutions, such as its supply-side platform (SSP), TV data management engine and addressable TV suite. Yospace – acquired by RTL Group in 2019 – has developed one of the most advanced technologies for server-side dynamic ad insertion (SSDAI), enabling traditional commercials to be replaced by targeted, personalized advertising. Yospace’s technology solutions will be leveraged by the TechAlliance offering.
Thomas Rabe, CEO of RTL Group, says: “Addressable TV advertising offers huge growth potential for European broadcasters. The newly formed TechAlliance is a landmark partnership towards seizing this opportunity. It gives European broadcasters and streaming services access to a technology solution which allows them to combine the high reach and brand safety of linear TV with the targeting solutions of digital advertising. TechAlliance will set market standards in the European TV industry, giving advertisers and media agencies seamless access to our premium video inventory.”
Because addressable TV will grow available inventory, attract new advertisers and deliver higher CPMs, market studies predict that addressable TV could account for 30 per cent to 50 percent of all TV advertising spend in Europe in the long term. In Germany alone, addressable TV advertising is expected to grow to more than €500 million by 2025.
Thomas Rabe continues: “RTL Group’s strategy is based on three priorities – core, growth, and alliances and partnerships. With RTL AdConnect, Bedrock and our new TechAlliance, we offer partnership opportunities to other European broadcasters in the areas of advertising sales, streaming technology and advertising technology – all based on the philosophy of bundling resources to establish open and neutral platforms. We are in advanced talks with several European broadcasters to scale up our international platforms, which complement our goal to lead in-market consolidation throughout Europe.”
Nick Brien, CEO of Amobee, says: “Amobee’s collaboration with RTL Group to form TechAlliance is a pioneering example of our companies’ complementary business strategies: to bring buyers and sellers closer together through mutually-beneficial solutions and technologies that allow for a thriving independent ecosystem. TechAlliance is a major milestone for the advertising industry in Europe, giving advertisers programmatic access to the most expansive pool of addressable pan-European premium content, underpinned by privacy-compliant and future-proofed audience solutions. It gives broadcasters the ability to combine sales and technology to scale their operations – extracting the most value from their data and inventory assets. TechAlliance is truly the next wave of ad tech innovation: powering the convergence of TV and digital.”