Korean digital advertising company Yello Mobile has acquired a majority share of Indonesia’s AdPlus, for an undisclosed sum, making it the company’s second acquisition in the country following Price Area in 2014. Yello Mobile, which raised $100 million in venture funding in November, has been very aggressive in its drive to expand, acquiring 61 companies throughout 2014.
“We are now actively pushing forward to investing overseas, placing immediate focus on Southeast Asia’s growth potential in mobile & digital marketing. Our goal is to translate the success we have experienced locally in to becoming a leader in digital marketing regionally, and our partnership with Adplus marks a promising beginning,” said lee Sang Hyuk, CEO of Yello Mobile.
According to TechCrunch, “the average valuation for a startup at acquisition by Yello has been $3.6 million. Across the 61 startups it purchased in 2014, the company spent just $111 million total.”
Yello Mobile has a history of skyrocketing the effectiveness and performance of companies it acquires. South Korea’s second largest mobile ad network Cauly for example, had $100,000 in revenue when it was acquired by Yello Mobile in early 2014. In under one year, the company claims its revenue has skyrocketed to $1.2 million. Coocha, which measures performance of e-commerce outlets, went from 850,000 monthly active users in 2013 to nearly 3 million today and its revenue from $160,000 to $810,000.
Since its founding in 2012, AdPlus has become a dominant force in digital advertising in Indonesia with more than a billion ad impressions through desktop and mobile. Its clients include AXA, Chevrolet, Coca Cola, Danone, Minute Maid, Nokia, and Samsung.
AdPlus runs four digital advertising products, SMART, Hi-Impact, AdPlus Social Advertising, and Glitz Media. SMART is a ROI-based remarketing platform that works to ensure ad units and campaigns reach their intended online audience and deliver strong conversion rates.
Hi-Impact is a rich media advertising product which delivers TVC-like advertisements on the web coupled with the Internet’s capabilities for analytics, measurements, direct engagement and interactivity.
AdPlus Social Advertising runs a combined online advertising management platform for major online consumer channels, namely Google, Facebook, and Twitter.
Glitz Media is a female-oriented premium online advertising network which delivers campaigns through multiple channels such as social media influencers, UberMedia properties, and high performing publishing outlets.
According to Yazid Faizin, CEO and co-founder of AdPlus, Yello Mobile approached the company with a very attractive business and collaboration model. “With Yello Mobile’s proven capabilities and technologies, combined with AdPlus’s experience and network, I’m confident that we can be a leading digital marketing company in Southeast Asia.
Digital marketing is a rapidly growing industry in Indonesia. According to eMarketer, Indonesia’s digital advertising market volume increased by 98% in 2014 alone. The research firm expects the country to surpass India’s digital ad spend by 2017 and leapfrog South Korea in 2018. Digital advertising in 2016 is expected to reach 12% of total advertising spend compared to just 5% in 2012.
Yello Mobile has already set out an arrangement for AdPlus to collaborate with its other properties across several verticals including platform through WiseBird and Cauly, digital marketing agencies AdQua and e-motion, and a solutions company RecoBell.
The Korean company, which was also founded in 2012, has been rapidly growing as a mobile media company, acquiring various mobile services in travel, shopping, ads, O2O platform, and media & content platform. The company has now became the first Korean venture to achieve a US$1B valuation, within only two years after launch following the investment by Formation 8 in November.
[header image of AdPlus co-founders Yazid Faizin and Pandu Wirawan courtesy of AdPlus]