Yahoo has announced yet another acquisition. This time, the company in question is AdMovate, a startup that says it helps advertisers “deliver personalized, hyper-local targeted offers through the mobile channel.”
Unsurprisingly, AdMovate is joining Yahoo’s advertising team. There, the company says it will “execute [its] vision faster and address the most important mobile advertising challenges for [its] customers.”
So. Much. Tech.
Some of the biggest names in tech are coming to TNW Conference in Amsterdam this May.
Yahoo made it clear in its announcement that this deal is an investment in its ad tech platforms, which include Apt, Genome, and Right Media. Yahoo also clarified that AdMovate’s future contributions will focus on mobile:
Admovate’s personalization technology accelerates our capabilities in mobile advertising, and we gain an exceptionally talented technical team. Admovate’s engineers will join our Yahoo! display advertising team in Sunnyvale.
Following previous acquisitions which focused on bringing fresh talent into Yahoo — like Summly, Astrid, Milewise, Loki Studios, Go Poll Go, PlayerScale, Rondee, Ghostbird Software and Tumblr — it appears this purchase is intended to directly impact the firm’s bottom line. Judging from Yahoo’s weak Q2 results, this was a smart move on CEO Mayer’s part.
Despite its rising share price, Yahoo reported yesterday that its display revenue in Q2 2013 was down a troubling 12 percent year-over-year. Similarly, search revenue fell 9 percent year-over-year to $418 million. Hopefully for Yahoo, deals such as this AdMovate acquisition will help the company turn around something perhaps more important than its image: its business model.