Xaxis' 24/7 Acquires Semantic Engine: Will Target Ads Programmatically Based On Language, Not Cookies
Terms of the deal were not disclosed, but 24/7 acquired Crystal Semantics from Ad Pepper Media International, and will likely integrate its semantics filtering capabilities into WPP trading desk Xaxis, when Xaxis absorbs 24/7 early next year.
"The ad tech ecosystem has become very focused on audiences, almost to the neglect of the value of both content and context," 24/7 Chairman-CEO David Moore, states, asserting that the acquisition will enable 24/7 and Xaxis to return “content to its rightful place and [enhance] the digital landscape for all players: advertisers, publishers and most importantly -- consumers.”
The acquisition is also a potential hedge for Xaxis -- which like other agency trading desks, is racing to develop “cookieless” solutions for targeting consumers programmatically as technology and regulation compromise the ability to use browser-based cookies to target individuals based on their online user behavior.
“As cookie-based targeting has become increasingly vulnerable to actions by both regulators and industry, semantic advertising provides 24/7 Media's clients with a valuable alternative method of delivering highly precise advertising,” 24/7 stated in its announcement, adding that semantic filtering makes it possible to target ads to individuals based on “accurately matching ads to the meaning of a page of Web content,” greatly reducing “risk” that irrelevant ads will be served to the wrong consumers.