Magnetic Acquires Retargeting Startup Cognitive Match

Magnetic has acquired Cognitive Match for an undisclosed sum. Using rules-based logic and automated optimization technologies, the two companies have created multiple ways to personalize ads based on products, interests, and geography.

Magnetic data gathered from product reviews and vertical search sites creates intent-based signals that help Cognitive's platform to identify creative pieces for ads that will produce the best results in real-time. Dynamic creative pieces using the right intent data to fuel marketing programs are a key contributor to campaign success.

Magnetic CEO James Green said the company acquired Cognitive Match because the company went up for sale. The two companies would have continued their two-year partnerships if Cognitive had not been for sale, he said. Aside from the technology and intellectual property, the company brings new clients like Havas Digital, along with other media agencies.

The acquisition should bring Magnetic additional annual revenue. "Cognitive Match sells at about 25 cent CPM and the CPMs we charge when there's media attached are more than 10 times higher," Green said. "Converting one Dynamic Creative client to a media client creates a pretty big revenue switch, so there are some pretty big revenue opportunities attached. These are just estimates."

Cognitive Match brings Dynamic Creative Optimization (DCO) technology, enabling brands to transform generic advertising into relevant messages by changing the creative elements of the ad in real time. Brands use DCO to show personalized ad content based on audience attributes related to their interests, environment and purchasing patterns that can increase engagement and response. The combined companies give marketers the ability to add search data to dynamic creative.

Cognitive Match Founder and CEO Alex Kelleher joins the Magnetic team based in New York, San Francisco and London. The acquisition comes after Magnetic's recent international expansion to London and Toronto earlier this year.

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