RTL Group, a Luxembourg-based digital media group, has signed an agreement to acquire Yospace for US$33 million in an attempt to accelerate its global ad-tech business. The transaction is expected to close on February 1.
Yospace has developed the Server-Side Dynamic Ad Insertion (SSDAI) technology, which allows the replacement of existing commercials from a broadcast stream with “more targeted, personalised” advertising.
The technology has been adopted by broadcasters such as BT Sport, TV4, ITV and Seven West Media, as well as other media owners throughout Europe, the US and Asia.
In a statement, RTL Group labelled SSDAI as the de facto standard to serve advertising spots in premium streaming environments, and affirmed that the Yospace technology is capable of “delivering the right advertising, at the right time, according to the rules established by the media owners”.
Yospace focuses on the streaming segment, which is a significant market for RTL Group’s global ad-tech company, SpotX. This market segment includes video-on-demand (VoD) and live video that is streamed to any Internet-connected device.
The acquisition of Yospace will complement RTL Group’s ad-tech stack by ensuring its key technology is able to retain and scale media clients, including RTL Group’s broadcasters and streaming services.
Bert Habets, CEO of RTL Group, described the acquisition of Yospace as “an important step” for the group in building its Total Video portfolio as it will help drive two strategic goals.
He elaborated: “First, we gain a competitive, fully integrated and profitable solution which is key to further grow our ad-tech business. Our goal is to continue expanding SpotX into a leading monetisation platform for broadcasters, VoD services and publishers.
“Secondly, this acquisition will also help build local streaming champions in the markets where we have strong families of channels.
“The Yospace technology makes advertising on streaming services more personal, which means a better consumer experience for monetisation of our premium advertising inventory.”