Millennial Media Acquires Jumptap: How Will It Affect You?

On August 13th, veteran mobile advertising network Millennial Media acquired privately-held, Boston-based Jumptap in what’s been described as a ‘predominantly stock transaction.’ Both companies share a prominent role in the mobile advertising industry, so now that Jumptap have been snatched up by Millennial Media, what does this actually mean for you?

Millennial Media has been serving mobile ads for advertisers from as early as 2006 and has become a leading network in the mobile advertising industry ever since. In 2010, they opened their first international office in London and now have offices across the US as well as Asia. Prior to the acquisition, Millennial Media also had around 18% of the mobile advertising market, putting them not too far behind Google.

Jumptap on the other hand, has had a presence in mobile almost as long as Millennial Media but began focusing more on mobile-search products. In 2010 George Bell joined Jumptap as COO and shifted the focus more on to targeted mobile advertising. Before the acquisition, Jumptap had a reach of over 218 million mobile users in the US alone, with almost 500 million worldwide.

So what does this mean In terms of stock? Well, a fair amount. Jumptap shareholders will be pleased to know that they now own shares in Millennial Media. In total, shareholders will receive approximately 24.6 million shares of Millennial Media which is roughly 23 percent of Millennial Media. Because of the added shares, however; the total value of Millennial Media did drop by a few dollars which left some investors worried – but there’s no need to be.

If shares and stocks don’t really pique your interest, but rather you’re an advertiser wanting to know what this means for you, read on.

The combined company of both Millennial Media and Jumptap will provide advertisers with an even stronger platform to advertise on. Now that Millennial Media has use of Jumptap’s cross-screen, programmatic bidding/buying and measurement solutions, as well as their 55 patents and 50 patents pending and partnerships with more than 20 third-party data providers, the company is stronger than ever at serving relevant adverts to consumers.

Last year Millennial Media had 18% of the mobile advertising network market share and Jumptap had 10.7%. Combined, that gives Millennial Media an ad network market share of 28.7%. This probably means nothing to you, but what it means in terms of market share is that Millennial Media is almost on par with Google’s mobile ad share, lessening the gap between the two competitors.

“Millennial Media already runs one of the largest third-party digital media businesses, despite mobile being in its early stages. Jumptap’s expertise in performance, cross-screen, real-time bidding and third-party data fit well with, and provide incremental scale to Millennial Media’s existing platform,” said Paul Palmieri, President and CEO, Millennial Media. “We are thrilled to add Jumptap’s capabilities, their solution set and strong team as part of our mobile advertising business, and look forward to partnering with the team.”


So if you’re looking to dive into mobile advertising, now is probably a really good time to take a look at Millennial Media. With such a broad reach across millions of mobile devices worldwide your money will certainly be well spent.

Mobile advertising is quickly becoming one of the top methods of advertising thanks to the huge variety and reach that mobile devices offer. Adverts that can be served to mobile users are not only full of rich media that people want to see, they can also be more personal than your standard online banner advert. They can communicate with the user more affectively based on different criteria such as location, the hardware they’re using, the amount of apps they have installed, as well as the apps the adverts can be served on themselves.

According to its press release, “Millennial Media will enable deeper insights from a greater number of ad campaigns that run across a variety of screens. With an intense focus on customer service and execution, Millennial Media will take the complexity out of delivering digital audiences across mobile and web at a time when consumers hop between screens with increasing ease.”

It’s been said that mobile advertising will surpass desktop ads in around four years. This increase includes the use of social networking adverts as well as adverts found within apps and games, but mostly search based ads which target users based on their search terms. The next few years is going to be an interesting time for mobile.

[author]Aaron Richardson is a 24-year-old techno nerd, musician, and aspiring tech writer. He is the editor of and author of Mobile Ad Comparison. [/author]

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