ADOTAS — Earlier this week, Facebook acquired the Tel Aviv-based mobile software and analytics company Onavo for $120 million, according to published reports. The deal bolsters the social giant’s mobile efforts and also expands its corporate presence into Israel.
“The big draw for Facebook is Onavo’s pioneering data compression technology, which helps smartphones cut data consumption as much as 80 percent,” wrote Vindu Goel in The New York Times. “Such compression is vital to the goals of Internet.org, an organization started by Facebook’s chief executive, Mark Zuckerberg, in August that is trying to offer mobile Internet access free or at very low cost to the about four billion people globally who do not have it.
Today, Joe McCormack (pictured), CEO of Adquant, one of the first Preferred Marketing Developers (PMD) for Facebook, weighed in on the deal and what it means to the tech scene is Israel. Adquant also has an office in Tel Aviv.
“The Facebook purchase of Onavo makes a lot of sense, as does the opening of an R&D center in Israel,” said McCormack. “The mobile media measurement that Onavo provides will help Facebook make their case to advertisers that they are the best platform for mobile advertising. As a Facebook PMD, we see millions of dollars in mobile media ad spend on Facebook and the quality is amazing compared to mobile search or display. Facebook is positioning for a mobile-centric future, which makes a lot of sense as they had almost a half-billion mobile users last quarter.
“From an R&D standpoint, Israel is the brain center behind some of the hottest apps on our mobile devices like Waze, Moovit, and Billguard. Being close to this mass of mobile R&D brain power is a great strategic move by Facebook.”