AppNexus expands Latin American business with RealMedia purchase

Advertising technology company AppNexus, with headquarters in New York and operations on five continents, bought Sao Paulo-based RealMedia Latin America to gain local expertise as it expands in the region.

“The goal of the acquisition was to provide us with deep local expertise as we service our clients and grow our business in that region,"AppNexus Vice President for Market Development in Latin America John Barr told Latin Business Daily by telephone from outside Boulder, Colorado.

RealMedia, with headquarters in Sao Paulo and operations in Argentina, Brazil, Chile and Mexico, added a customer base that included “a premier list of Spanish-language and Portuguese-language publishers,” according to information provided by AppNexus. The transaction price has not been disclosed.

Peter Gervai, managing director of Real Media, has said that the deal enables RealMedia clients to “access AppNexus´ broad range of products, including the most advanced version of Open AdStream for Publishers and sophisticated analytics and forecasting tools like Yieldex,” according to information released by Appnexus.

"AppNexus powers the online marketplaces that connect the buyers and sellers of digital media and allows them to transact programmatically,” Barr said. “Programmatic is an automated way of buying and selling ads."

What differentiates AppNexus from its closest competitors is that Appnexus does not have a media business, Barr said. “We are strictly a technology provider, which is good news for our publisher clients because we don't compete with them for ad revenue."

According to Michael Rubenstein, president of Appnexus, the purchase of RealMedia Latin America positions the company to create an independent powerhouse in a fast-growing part of the programmatic market. “Latin American buyers and sellers of online advertising need a state-of-the-art technology platform if they're to build strong, independent businesses that can compete locally and globally,” he said.

According to a press release issued by AppNexus, market research firm eMarketer estimates the programmatic advertising market in Latin America will grow from $5.29 billion in 2014 to $8.27 billion by 2017, with over 80 percent concentrated in Brazil, Argentina and Mexico. 

“The acquisition, AppNexus' fifth in the past 12 months, extends the company's physical footprint across five continents and positions it to capture fast growth in Latin America's programmatic advertising market,” AppNexus said in a statement.

Founded in 2002, RealMedia Latin America offers marketing and technology solutions to online advertisers and publishers. Among its customers are Globo, Estadao, Walmart, MercadoLibre B2W, El Mercurio, and El Universal Mexico.