Today, Rubicon Project (NYSE: RUBI) announced the acquisition of iSocket, Inc., a leader in programmatic direct advertising solutions. The combination will enable Rubicon Project to accelerate the growth of the automated guaranteed market, which eMarketer forecasts will exceed $8 billion by 2016.
LUMA Partners represented iSocket in the transaction.
While the RTB market subset of programmatic media buying has flourished in the past few years, the advent of software automation applied to non-auction, direct traded media is just now upon us. Automated guaranteed workflow solutions will substantially improve efficiency and yield for premium inventory across display, mobile and video. For premium publishers, this segment represents the lion’s share of advertising revenue and having the right tools to be able to optimize and increase the efficiency of transactions is paramount.
LUMA has consistently called for the inevitable application of software solutions for the premium end of the inventory spectrum. Consolidation of advanced capabilities into the hands of scaled media automation leaders, such as Rubicon Project, is a natural step in that market development. We anticipate further consolidation activity as this promising sector develops.
We believe this deal marks a very strategic point in the evolution of software-enabled media buying. Congratulations to iSocket and Rubicon Project!