Beeswax has snatched up ad-tech startup MediaGamma, continuing a round of industry consolidation that comes amid a period of contraction in the ad-tech world. Financial details of the transaction were not publicly disclosed.
Beeswax made the purchase to bolster its engineering capabilities, as well as broaden its international footprint. MediaGamma was a UK-based operation.
Beeswax, itself a startup, is a demand-side platform that effectively lets media buyers improve the targeting capabilities of their preexisting trading algorithms, and has sought to service those advertisers that want to in-house automated ad buying.
As part of the deal, MediaGamma’s head of data science, Shuai Yuan, Ph.D., will join Beeswax as director of data science and will spearhead the company’s expanding investment in machine learning.
Ari Paparo, Beeswax CEO, told Adweek the newly acquired artificial intelligence and machine-learning capabilities—purchased with the proceeds of last year’s Series B funding round—will broaden the range of services it offers.
“Shuai [Yuan] is a well-recognized expert and has numerous publications under his belt about RTB [real-time bidding] optimization and bid shading … MediaGamma was known for custom builds and consulting, now they’re going to be core to building Beeswax products,” he said.
Although the purchase counts as a relatively small transaction compared to recent mergers and acquisitions, it serves as a contrast to the widespread contraction in the space, as many ad-tech players reduce headcount amid the economic uncertainty stemming from the coronavirus crisis.
Separate reports recently highlighted how advertisers want to reduce their number of ad-tech partners with supply chain optimization and assurances over data privacy cited as deciding factors on whom they will retain on their media plans.