The mobile advertising consolidation continues: Baltimore-based Millennial Media, which is one of the largest U.S. based mobile ad networks, is acquiring TapMetrics, a San Francisco-based mobile analytics firm. Terms of the deal were not disclosed.
In recent months, Millennial’s closest competitors have either been acquired or have merged with other rivals. Companies left in the space are feeling the pressure to either gain scale or additional skills. Millennial said that TapMetrics provides developers analytics in order to better manage application sales and revenue. Michael Avon, Millennial’s EVP and CFO, said the acquisition will be funded with the $16-million round the company raised in November, and will continue to “to actively evaluate other potential acquisitions to further expand our business.”
Millennial said TapMetrics will continue to be based out of its San Francisco headquarters.
Millennial already releases quite a few key metric figures. In an annual review, it said it’s average deal size increased 353 percent, and non-U.S. impressions increased 175 percent year-over-year.
The company, which is known for having large U.S. operations, is having to go up against even bigger competitors as of late. Google purchased AdMob for $750 million, which is still under review, and Apple bought Quattro Wireless. Lesser known mobile ad networks, Amobee Media Systems bought RingRing Media in the UK, and Flurry and Pinch Media, two companies that provide analytics to the space, also merged.
For now, the mergers are mostly speculative as the mobile advertising industry has yet to really be a substantial market, compared to other mediums, such as online or TV or print. However, because of the personal nature of cellphones, the always-on aspects, and the potential for location-based services, everyone is banking on it being a large opportunity. But for now, the mergers are outpacing the growth: For example, following’s Google’s purchase of AdMob and Apple’s purchase of Quattro Wireless, the mobile advertising industry passed the $1 billion in value—which is quite the accomplishment given that the total U.S. mobile advertising market was only worth $416 million in 2009.
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