Mixpo’s ShopIgniter Acquisition To Blend Video, Mobile, Social Marketing
As location becomes the center of other ad strategies, the video ad platform attempts a seamless solution.
The days of specializing in a single ad strategy are over. Increasingly, marketers are cutting back on the panoply of tech vendors they use in the name of efficiency and cost-savings. Appealing to that thinking is partly what inspired video ad platform Mixpo’s acquisition of social/mobile ad provider ShopIgniter for an undisclosed sum last week.
Mixpo’s own ad market study released this summer highlighted its interest in incorporating social media into its capabilities. According to the Seattle-based company’s report, Tuned-In: Tune-In Advertising Report, 75 percent of local broadcasters believe social ads are critical or very important to driving ratings.
“Acquiring SI’s social platform will enable Mixpo to further expand our ability to engage customers across all of the devices and channels that are most important to them,” says Mixpo CEO Jeff Lanctot. “Additionally all the trends point to full-steam-ahead growth in video, mobile and social. Mobile and online video are the two fastest growing ad formats in terms of revenue.”
Lanctot cites additional numbers that support the acquisition. According to BI Intelligence, mobile advertising is expected to see 110.2 percent growth from 2013 to 2016, and online video ads are expected to rise by 19.5 percent. Additionally, the mobile phone and tablet share of digital video ads is expected to grow to 67% by Q4 of 2016, up from 17% in Q4 of last year.
“Mobile and social have become intimately integrated,” Lanctot adds. “Mobile ads make up 59 percent of Facebook ad sales, and 81 percent of Twitter’s ad revenue comes from mobile advertising.”
Mixing In Location
The demand to factor location into advertising also makes this intersection of social, mobile, and video more crucial for companies like Mixpo. In much the same way audiences cannot be divided into TV viewers versus online video consumers, there’s little point in approaching location, social, and mobile advertising as if individuals only fit into one of those categories.
“ShopIgniter runs lots of locally targeted campaigns for a few mid-market clients,” Lanctot says. “In addition, they run local campaigns for national brands and retailers across such outlets like Comcast’s Xfinity and Bloomberg.com. In general, social media is an excellent way to do location-based advertising because of the targeting capabilities due to rich data.”
Of course, when the industry talks about social media as a marketing tool, it’s specifically thinking of Facebook’s rise as an advertising powerhouse. As our Nicole Spector has reported, Facebook is actively stepping up its pursuit of small-to-medium sized businesses (SMBs) as a major part of its revenue base. ShopIgniter’s role as an official Facebook Preferred Marketing Developer instantly expands Mixpo’s offerings to clients on that platform as a result of this deal.
Lanctot is quick to highlight Portland, Ore.-based ShopIgniter’s “excellent relationship” with Twitter, which is closely following Facebook’s path to turn its micro-blog into a similarly powerful advertising vehicle for businesses of all sizes.
Working Side By Side
For the moment, at least, Mixpo has no plans to interrupt ShopIgniter’s presence in the marketplace by removing its name and turning it into just another tool in the company’s arsenal.
“Mixpo and ShopIgniter are very complementary companies,” says Matt Compton, ShopIgniter’s CEO. “The fit between the products, customers and teams became obvious very quickly in our initial discussions.”
ShopIgniter will also bring “dozens” of new clients to Mixpo, including Universal Pictures, which uses its social media ad program to fill movie theater seats for films like Oblivion, Lanctot notes. “We also continue to share some clients, such as Comcast,” he adds.