MediaMath (the “Company”), a pioneer in programmatic advertising, announced today an integrated set of initiatives designed to advance the next generation architecture for digital marketing.
The company is unveiling a range of investments in technology, people and relationships, as well as $225 million in new financing, to accelerate its mission to connect marketers with consumers in a manner that is more effective, efficient and trusted.
The financing, led by Searchlight Capital Partners, LP (“Searchlight”), provides strategic growth capital to accelerate the expansion of MediaMath’s industry-leading Demand Side Platform (“DSP”) and Data Management Platform (“DMP”). The funding will be delivered in two tranches to pursue both organic and inorganic growth initiatives. This financing brings MediaMath’s total capital invested to over $500 million and provides the necessary resources to help drive this next phase of growth.
“The marketing industry has reached a tipping point, with more than half of consumer time now spent on digitally connected devices, yet the challenges associated with connecting marketers with consumers to everyone’s benefit are still as palpable as ever,” said MediaMath’s CEO Joe Zawadzki. “We’re excited to have the people, products and partners to successfully deliver on the promise of making ‘marketing everyone truly loves’ – from consumers to advertisers to all participants in between.”
MediaMath is strongly positioned to serve as a leading catalyst for product innovation and consolidation as the category evolves. Key initiatives upon which MediaMath is currently executing include expanding its open identity stack, reengineering the infrastructure that connects consumer touchpoints (including scaling activity in high growth channels such as connected television and digital out-of-home), and accelerating the broad adoption of artificial intelligence, which is a prerequisite to driving real business outcomes with consumer respect at scale.
“Together, MediaMath and IBM are infusing AI into real-time marketing decisions, arming marketers with the insights needed to more effectively delight their customers,” says Inhi Cho Suh, General Manager, Watson Customer Engagement. “MediaMath’s focus on machine learning in the paid digital advertising sphere complements IBM’s leading-edge AI and cloud technology to enable brands to make the connection with consumers personal and meaningful.”
The company was also recently selected by Dentsu Aegis Network to power its digital and programmatic business under Amnet’sAmnet Audience Center (“AAC”). Following a year-long deployment, a still-growing advertiser base of more than 600 advertisers in 30 global markets utilize AAC’s audience segmentation, analytics, and insights to deliver better business outcomes for its advertisers and partners.
“The industry has evolved together, with a class of consistent change-agents-for-the-better constantly redefining the status quo in pursuit of an idealized state of ‘better’ for people, for brands, for the ecosystem that connects them,” said Amnet’s Global President, Ashwini Karandikar. “We see ourselves as that, and we see great partners in the team at MediaMath.”
Adds Bill Wheaton, Executive Vice President & Chief Strategy Officer, Akamai and MediaMath Board Member, “solutions that drive better user experiences and better business outcomes for our publisher clients are critical, and our partnership with MediaMath is an important part of that effort.”
Searchlight provides strategic support for its partner companies, many of which employ technology to deliver enhanced customer value propositions. The firm has considerable experience investing across the technology, media and communications landscape, with relevant current or former investments that include Rackspace, PatientPoint, Ocean Outdoor, Octave Group, General Communication, Hemisphere Media, Liberty Cablevision Puerto Rico and Global Eagle.
“MediaMath is uniquely positioned to architect and deliver the idealized version of the marketing stack of the future for both brands and agencies,” said Darren Glatt, Partner at Searchlight Capital Partners. Searchlight is investing in MediaMath through its Searchlight Opportunities Fund, including a participation by Searchlight’s LightTree Capital Solutions.
“MediaMath is executing on a successful and accelerated growth plan that has been facilitated by both organic investment and M&A,” adds Franklin Rios, Global Head of Corporate Development at MediaMath. “Searchlight’s investment will ensure that we continue on our path of consistent and profitable growth, with the support of a long-term, strategically oriented partner.”
RBC acted as exclusive financial advisor to MediaMath on the transaction. As a part of this transaction, MediaMath has reaffirmed its financing relationship with Goldman Sachs and Santander Bank, and looks forward to expanding its relationship with each.