Impartial international advert server Flashtalking mentioned on Tuesday that it has acquired Israeli-based advert fraud detection specialist Protected Media because it makes an even bigger push into the OTT area.
Phrases of the deal weren’t disclosed, however the acquisition was made with a mixture of money and inventory.
The deal permits Flashtalking to supply verification, fraud detection and viewability companies globally throughout desktop, cell internet, in-app and CTV/OTT.
Protected Media, which has workplaces in Tel Aviv and New York, obtained Media Score Council accreditation for fraud detection in OTT final 12 months, enabling advertisers that buy OTT stock to implement verification safeguards.
“CTV is such a sizzling area proper now and has a variety of distinctive challenges that Protected Media’s know-how can actually handle,” Flashtalking CEO John Nardone instructed AdExchanger. “We’re actually excited to convey built-in knowledge by means of the verification service into our built-in knowledge merchandise, a simplified workflow and now actually deepening our capabilities in CTV.”
Protected Media’s 17 staff will be a part of Flashtalking, and the corporate can be hiring seven new verification specialists. The combination course of will happen over the subsequent six months.
The acquisition marks Flashtalking’s fourth M&A deal over the previous a number of years, which included dynamic artistic optimization firm Spongecell and attribution analytics supplier Encore Media Metrics.
“Before you purchase the media you’ve bought to have the artistic, and after it’s a must to measure it,” Nardone mentioned.
Till now, although, Flashtalking didn’t assist consider stock high quality, and the advert server’s purchasers discovered it cumbersome to combine numerous verification companions.
Talks with Protected Media started in 2019, however Nardone mentioned the acquisition took on added significance final 12 months with the shift to streaming through the COVID-19 pandemic.
“This reinforces for the business that Flashtalking is enjoying huge within the OTT area and is investing and bringing distinctive capabilities to the desk that folks don’t have, and it’s a part of a long-term technique to win in that area,” he mentioned.
The OTT increase has created extra alternatives for fraudsters, significantly large-scale “spoofing” assaults, wherein scammers use server-side advert insertion to generate faux CTV stock throughout a lot of apps, IPs and units, which might value advertisers and publishers tens of millions in advert spend.
“We’ve seen good publishers get fully thrown off platforms, get blacklisted for issues which don’t have anything to do with them,” mentioned Asaf Greiner, CEO and founding father of Protected. He added that Protected Media is working with publishers to assist clear their names with teams which have accused them of fraudulent actions.
Protected Media may even assist Flashtalking to speed up the set-up and administration of verification processes, because it’s an automatic device and doesn’t depend on error-prone shared spreadsheets.
Flashtalking had already been investing in its OTT and CTV partnerships and platform integrations with different verification companions, together with DoubleVerify and Oracle Moat, and Nardone mentioned Flashtalking will proceed working with them.
“However at the moment, as we exit the door, Protected Media is the one a kind of that has an MRC-accredited OTT resolution,” he mentioned. “Flashtalking can be certain that purchasers won’t ever need to doubt the standard of their impressions, particularly costly, high-value OTT/CTV impressions.”
Final 12 months, Protected Media uncovered an advert fraud scheme dubbed Hydra that stole tens of millions from advertisers by impersonating app site visitors. The corporate labored with Google and the Reliable Accountability Group to close the rip-off down.
But it surely’s an ongoing course of.
“On the finish of the day, the takedowns of many of the assaults should not very helpful, since you take down the assault however you don’t take down the attackers – their group continues to be there,” Greiner mentioned. “In the event you take away one in all their strategies, they’ll return with a brand new one. What’s necessary for us isn’t the precise takedown – it’s offering the business and the advertisers with instruments to cooperate with each other and take care of the assaults as they materialize.”