Rakuten LinkShare to Acquire mediaFORGE
Rakuten LinkShare today announced it has entered into a definitive agreement to acquire mediaFORGE, a Utah-based dynamic display media company. Founded in 2009, mediaFORGE’s Consumer Engagement display platform provides online advertisers with a unique way to prospect, retarget, nurture, and engage customers to help drive higher conversion. Terms of the deal were not disclosed.
Rakuten LinkShare is acquiring mediaFORGE to add to its portfolio of affiliate marketing, search marketing and lead generation services and solutions. The company is expanding its offerings through the mediaFORGE acquisition to help online retailers drive multi-channel, integrated campaigns.
mediaFORGE is the only display advertising and retargeting company that bases its business model on Consumer Engagement, aligning its goals with advertisers’ goals by using a metric that measurably increases site conversions. As a result, clients get highly detailed analytics capabilities that offer online retailers and other companies a powerful tool for discovering actionable insights to achieve online marketing objectives.
Rakuten LinkShare’s global network will enable mediaFORGE to accelerate its expansion and reach throughout the US, Canada, the UK, and Japan. Long term the two companies will work together along with advertisers and publishers to identify multi-channel synergies and technical integration opportunities that will create value within today’s dynamic online advertising landscape.
Strong demand for display related services have recently been reported as advertising industry revenues continue to climb. In April 2012, the IAB reported that 2011 display related advertising revenues totaled $11.1 billion, representing an increase of 15 percent over 2010.
“We welcome mediaFORGE to the Rakuten LinkShare family of services and solutions. Their unique Consumer Engagement advertising model presents a compelling value proposition to our network of global advertisers,” said Yaz Iida, chief executive officer, Rakuten LinkShare. “As we build a powerful, strategic portfolio of online marketing services that go beyond affiliate marketing, mediaFORGE complements our approach with a proven display and retargeting solution to help advertisers maximize their online investments while providing a personalized shopping experience for consumers.”
Advertisers searching for additional ways to drive sales using the cost-per-action (CPA) model will find the two companies aligned when it comes to pricing. The mediaFORGE pricing model is based on conversions attributed to Consumer Engagement while Rakuten LinkShare affiliate marketing has long been an industry leader in performance marketing.
“We founded mediaFORGE to address the growing need of online advertisers to optimize campaigns for performance, foster Consumer Engagement, and drive higher conversion while delivering a reliable return on ad spend,” said Tony Zito, chief executive officer of mediaFORGE. “This strategy will remain the same as mediaFORGE joins the Rakuten LinkShare portfolio of services. What changes is that our potential to reach more advertisers with our Consumer Engagement display model has grown exponentially as we make plans to expand our business around the world.”
mediaFORGE currently employs approximately 50 people, all of whom will remain with the company. The name of the company will remain mediaFORGE and the company headquarters, development, and business operations will remain in Salt Lake City. The deal is expected to close later in 2012.
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We recently met with LinkShare and briefly discussed this acquisition. Overall our thoughts are positive. The more solutions that an affiliate network can offer, the better. So long as they are solid offerings. One platform, sales team, interface, etc. eases the administration aspect of our management services. With at least CJ and LinkShare we’ve seen a growing trend in acquiring third-party platform providers. But with that, they’re consistent focus on the core of affiliate marketing is appreciated.
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