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
cmo-xs-promo

Latest Videos

More Videos

Nice blog!Blog is really informative , valuable.keep updating us with such amazing blogs.influencer agency in Melbourne

Rajat Kumar

Why flipping Status Quo Bias is the key to B2B marketing success

Read more

good this information are very helpful for millions of peoples customer loyalty Consultant is an important part of every business.

Tom Devid

Report: 4 ways to generate customer loyalty

Read more

Great post, thanks for sharing such a informative content.

CodeWare Limited

APAC software company brings on first VP of growth

Read more

This article highlights Gartner’s latest digital experience platforms report and how they are influencing content operations ecosystems. ...

vikram Roy

Gartner 2022 Digital Experience Platforms reveals leading vendor players

Read more

What about this one FormDesigner.pro? I think it's a great platform providing a lot of options, you can collect different data and work w...

Salvador Lopez

Gartner highlights four content marketing platform players as leaders

Read more

Blog Posts

​Why we need to look at the whole brand puzzle, not just play with the pieces

Creating meaningful brands should be a holistic and considered process. However, all too frequently it’s one that is disparate and reactive, where one objective is prioritized at the expense of all others. So, what are the key pieces to the ‘good’ brand puzzle?

Marketing overseas? 4 ways to make your message stick

Companies encounter a variety of challenges when it comes to marketing overseas. Marketing departments often don’t know much about the business and cultural context of the international audiences they are trying to reach. Sometimes they are also unsure about what kind of marketing they should be doing.

Cynthia Dearin

Author, business strategist, advisor

From unconscious to reflective: What level of data user are you?

Using data is a hot topic right now. Leaders are realising data can no longer just be the responsibility of dedicated analysts or staff with ‘data’ in their title or role description.

Dr Selena Fisk

Data expert, author

Sign in