Updated: Amazon buys Sizmek Ad Server, DCO

Ecommerce giant strengthens its digital advertising might against Google by picking up Sizmek's assets out of bankruptcy

Amazon has confirmed it is acquiring the ad server and creative optimisation divisions of Sizmek’s ailing business, strengthening its own offering against the might of Google.

After a couple of weeks of speculation, Amazon issued a statement on 31 May confirming an agreement to purchase the Ad Server and Dynamic Creative Optimisation (DCO) components of Sizmek’s business. The Ad Server will help Amazon place advertising across the Web, while DCO helps personalise display advertising based on data sets.

The news comes two months after Sizmek filed for Chapter 11 bankruptcy protection. It also comes a month after the business announced Zeta Group was buying its DMP and demand-side platform (DSP) capabilities in a deal worth US$36 million.

Amazon noted Sizmek and Amazon Advertising had many mutual customers, which indicated how valuable the solutions were to its customer base. The move comes as Amazon ramps up its own advertising offering, launching services officially in Australia in April. Reports suggest the deal gives Amazon the second-largest ad server footprint in the market behind Google.

“Sizmek has been searching for a buyer for Sizmek Ad Server and Sizmek DCO, and we are both committed to continuing serving their customers at the high standards they’ve come to expect, Amazon said in a statement. “Once the deal closes, Sizmek Ad Server and Sizmek DCO will operate separately from Amazon Advertising for the time being. We look forward to working with the team, and we’ll share more updates as we invent and create new opportunities to better serve our advertisers over time.”

Financial terms have not been disclosed. In its own statement, Sizmek thanked customers for their patience as it sought to find a home for its solutions.

“Becoming a part of Amazon allows Sizmek Ad Server and Sizmek DCO to continue serving you at high standards,” the company stated on its website. “Sizmek and Amazon have many mutual customers, so Amazon already knows how valued these solutions are and is invested in the long-term success of Sizmek Ad Server and Sizmek DCO.”

Commenting on the deal, Gartner analyst, Andrew Frank, said Amazon is reinforcing its strategy of streamlining performance advertising and cutting out the middle man by scooping up intermediaries providing ad servers, DSPs, SSPs, and exchange and so on in one package.


"The key is aggregating direct publisher relationships and layering its rich data into the customer acquisition formula," Frank told CMO. "Although Google and Facebook do this too, Amazon is unique in directing ads back to its own platform where it can take a transaction fee if the ad results in a sale. It's a retail and a media business in one."

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Craig Davis

​Leadership resilience, startups scaling up, marketing best practices, customer insights - these are just a few of the topics we manage to explore in the latest episode of Conversations over a Cuppa with CMO featuring Craig Davis.

More Videos

JP 54, D2, and D6 EN590,JET A1 AVAILABLE ON FOB DIP AND TEST IN SELLER TANKWe Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel ...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

This article gave me a better understanding about content creation. I learned a lot like this website https://a2designlab.com/ also offer...

Ryota Miyagi

How Remedy is using digital marketing and commerce to drive conversion

Read more

JP 54, D2, and D6 EN590,JET A1 AVAILABLE ON FOB DIP AND TEST IN SELLER TANKWe Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel ...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandateWe currently have Available FOB Rotterdam/Houston for JP54,D2, D6, JetA1 with good and w...

Collins Johnson

3-pronged marketing approach for property disruptor Brickx

Read more

With a response rate of 80-90%, a well optimized chatbot is a must-have for every business. Check out this link to explore how you can en...

Drishti Khurana

How NRMA’s Arlo the Koala chatbot won over customers

Read more

Blog Posts

Life beyond the cookie: 5 steps to mapping the future of marketing measurement

​There’s no denying there’s been a whirlwind of response to the imminent demise of the third-party cookie from all parts of the industry. But as we’ve collectively come to better understand the implications, it’s clear this change is giving the digital advertising industry the opportunity to re-think digital marketing to support core industry use cases, while balancing consumer privacy.

Natalie Stanbury

Director of research, IAB Australia

Ensuring post-crisis success

The COVID-19 pandemic has exposed brands’ CX shortcomings and a lack of customer understanding. Given ongoing disruption, customer needs, wants and expectations are continually changing, also causing customers to behave in different ways. Just look at hoarding toilet paper, staple and canned food, medicinal and cleaning products.

Riccardo Pasto

senior analyst, Forrester

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Sign in