Millennial Media has entered into a partnership with Latin American mobile ad network Adsmovil to help expand its presence in the region. Under their agreement, Adsmovil -- part of the Cisneros Group -- will offer Millennial mobile ad inventory and ad solutions across South America, Central America, and Mexico.
Adsmovil will essentially act as a regional sales force for Millennial through the deal, boasting clients including Coca-Cola, Disney, Ford, Toyota and McDonald’s in Latin America. Millennial last year generated about 85% of its $177.6 million in revenue in the U.S., with the balance coming from overseas.
“Mobile is a global medium, and expanding into Latin America was a natural next step for our platform,” said Millennial CEO Paul Palmieri, in announcing the non-exclusive alliance. The region has more than 400 million mobile users, with smartphone penetration expected to reach 40% by 2016, according to an eMarketer forecast.
But the mobile ad market still has a lot of room for growth.
While Latin America had the highest growth in mobile search and display advertising globally last year, according to the Interactive Advertising Bureau, that’s mainly because it’s starting from a much smaller ad base ($50 million) compared to more mature markets, like the U.S. and Europe.
For its part, Adsmovil will tap into Millennial’s first-party data to target the growing population of mobile users in Latin America across more than 45,000 mobile sites and applications. It will also expand its product suite by integrating Millennial’s video, rich media and other ad formats into its mobile ad offerings.
“This is a perfect combination, whereby we leverage Millennial Media’s inventory and technology with our strong relationships with the agencies and advertisers in the region,” said Adsmovil CEO Alberto Pardo. The company says its mobile network serves 4 billion ad impressions a month across the U.S. and Latin America.
Terms of the deal, including any revenue-sharing agreement between the companies, were not disclosed. Millennial is scheduled to announce third-quarter earnings next Tuesday. Analysts, on average, expect the company to report a loss of one cent per share on revenue of $59.2 million.