Admovate, a mobile ad firm, has been acquired by Yahoo in the latest of many major purchases from the web giant. The price which was paid to acquire this innovative new mobile advertising company has not yet been released, and there is surprisingly little speculation at this point. The purchase fits with Yahoo’s announced strategy of moving more and more toward the mobile market. As Yahoo CEO Marissa Mayer said recently, “Yahoo’s future is mobile, and we’re delivering our products mobile first.”
Scott Burke, Yahoo’s SVP of display advertising and ad technology wrote a blog post about the acquisition saying, “Today, we’re excited to announce the acquisition of Admovate, an advanced mobile ad technology startup. Admovate has created sophisticated technology that helps marketers reach their desired audience at the right time and place. This is especially important for mobile ad experiences that engage consumers on smaller screens.”
It is clear that Yahoo is looking to purchase the new technologies they want rather than using in-house teams to develop them. This will allow Yahoo to move more quickly by growing based on the work of other companies which they then purchase. While this might seem like a less honorable way of doing business, the fact is it is extremely effective. It also allows many innovative start-up companies to gain access to the capital they require to continue their innovations.
Along with the technologies of Admovate, Yahoo is getting the people who contributed to making this new advertising platform, which may be even more valuable over the next few years. They are continuing to work on developing and improving their mobile ad platform which offers advanced experiences for marketers and advertisers who want to target very specific groups using mobile ads.
While there are no known negotiations for additional purchases in the future for Yahoo, it is almost certain that there will be. Yahoo has been making many major changes, announcements and acquisitions over the past year and with a few exceptions they have been very successful. If they continue with this strategy they might be able to regain some of their lost importance in the internet and technology industry.
