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Amazon Close to Acquiring Sizmek’s Ad-Serving Technology

Amazon Close to Acquiring Sizmek’s Ad-Serving Technology


The deal to acquire Sizmek’s ad-serving tech could be done as soon as this week, bolstering Amazon’s existing advertising offering whilst also competing with the likes of Google and Facebook.

In an interesting turn of events, online e-commerce giant Amazon is believed to be acquiring Sizmek’s ad-serving technology in a deal that could bolster their advertising platform and compete against Google’s existing ad tech offerings.

As reported by Bloomberg, the deal could be completed as soon as this week but discussions are ongoing. As this moment of time, neither representatives of Amazon and Sizmek have made a comment on the forthcoming acquisition.

Sizmek has been selling off parts of its business as part of bankruptcy proceedings, following its filing for voluntary Chapter 11 bankruptcy on March 2019. At the time, the ad tech company estimated its assets were worth $100 million to $500 million.

Amazon’s move to acquire the company’s ad-serving technology follows last month’s sale, which saw Zeta Global purchase Sizmek’s demand-side platform for an estimated $36 million.

Boost for Amazon’s Ad Business

Sizmek’s existing ad-serving tech, which helps advertisers place spots around the internet and measure their effectiveness, competes directly with Google’s Marketing Platform, formerly known as DoubleClick. By securing this technology, Amazon would be able to better serve and measure ad campaigns internally while also boosting credibility with marketers who might associate the company more with e-commerce than with advertising.

Ultimately, this will also allow Amazon to compete with the likes of Google and Facebook who already have a number of ad tech offerings on their platform. Earlier this week, Google unveiled its new shopping experience tool that lets users complete purchases in its platform offerings, such as Google Search, Google Images, YouTube and more. In addition to launching its new Discovery Ads, it’s no doubt turning into competitive warfare as Google steps up it's offering to help marketers drive more e-commerce sales.

Last year, Amazon rebranded its advertising products, including Amazon DSP, Amazon Advertising Platform, Amazon Media Group and Amazon Marketing Services under one umbrella as Amazon Advertising, making it easier for advertisers and agencies to understand and access the tools available to them. With the addition of Sizmek’s ad-serving technology, it looks very likely that Amazon will crank up the gears as it continues to play a major part in the global advertising market.

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Mustafa Mirreh

Mustafa Mirreh

Mustafa is a senior journalist at PerformanceIN. Reporting on the latest day-to-day news and updates from the world of performance marketing, while also doing social media promotion, live reporting of events, article features and interviewing key industry players.


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