Taboola, a large content recommendation platform, has acquired ConvertMedia, an outstream video ad provider with $50 million in annual run rate revenue and roots in display advertising. Taboola’s thumbnail recommendations at the end of text articles are found widely on major online publishers’ sites. The company provides 14-15 billion of these recommendations on a daily basis to over 1 billion unique users per month.
Every ad that runs on a site serves different goals. The advertiser’s goal is to generate sales; the publisher’s goal is to generate revenue. But most often overlooked is the goal of the user.
The assumption, unfortunately, is that most every time you run an ad, you’re going to bother the user. There are rare exceptions to this - occasions in which you’ve delivered the right ad to the right person at the right time, the user engages and ultimately clicks through. But that happens only six out of every 10000 times the ad is served – and that’s a generous estimate.
Supply-side platform ConvertMedia has introduced a portfolio of outstream video ad units. While video is the hottest ad category, the scarcity of premium inventory and expense of creating high-quality video continues to be an issue for publishers eager to attract video ad dollars. Outstream ads - video units that can play against text and other non-video content - have become a popular way of addressing this issue.