21st Century Fox announced on Wednesday a deal to acquire the digital ad technology firm TrueX, signaling a push by traditional television groups to innovate in the TV ad market before digital competitors steal away a significant portion of the $65 billion business.
The deal is valued at about $200 million, according to a person briefed on the matter.
Founded in 2007, TrueX makes technology that replaces a slate of standard ads or video commercials — on the web, mobile and digital TV — with one interactive ad. The technology also allows advertisers to personalize ads to consumers based on their interests, so that a mother might see ads for diapers and a recently engaged couple an ad for vacations.
A viewer watching an episode of “So You Think You Can Dance” on Fox.com, for instance, could choose between watching a normal commercial break or interacting with an ad for 30 seconds and then returning to the show. Those so-called engagements include playing a game, flipping through a photo album or exploring a car.
Tribune Company and Pandora are among the companies that display TrueX ads, and advertisers include Coca-Cola, Apple, Visa and other major corporations.
The deal comes as the once impenetrable television ad business is starting to show signs of crumbling in the face of ratings declines, competition from digital and the fast adoption of commercial-free streaming services, such as Netflix. After decades of steady growth, television ad revenue in the United States is expected to tumble 1.4 percent in 2015 to 65.7 billion, according to Interpublic’s Magna Global. The market share of digital advertising is expected to catch up with the market share of TV advertising in the United States in 2016.
James Murdoch, co-chief operating officer of 21st Century Fox, said at a conference last week that the TV industry largely had been slow to innovate but that his company was eager to introduce new tech-driven advertising solutions that would allow for more interactivity and better targeting.
“The connections between brands and consumers have continued to evolve within digital video environments, and TrueX is at the center of this vital area of innovation,” Mr. Murdoch said in a statement. “We’re thrilled at the opportunity to have TrueX’s talented team work with us as we set out together to create new experiences in what we believe is a very exciting time in digital video.”
TrueX will remain an independent company, but work closely with Fox Networks Group, the companies said.
Joe Marchese, the founder and chief executive of TrueX, regularly cites the ineffectiveness of traditional TV and web advertising, claiming that TrueX ads are more engaging and also glean more useful user information for media groups and advertisers.
“This puts the TrueX team in an even better position to fulfill our vision and shape the digital video ad industry,” said Mr. Marchese. “As a creator and distributor of content, 21st Century Fox’s interests are very much aligned with our mission and vision to build technology to support a thriving digital video marketplace.