App discovery platform ironSource announced the acquisition of video ad tech company SteamRail today. SteamRail’s employees will join ironSource’s Advertiser Solution division as part of the deal.
The company’s technology delivers and monetizes video ads, and claims to do it cleaner and faster than other companies in the mobile space, which has been clogged with slow-loading video -- especially the mobile Web.
Within ironSource, SteamRail’s tech will be used to enhance its video programmatic offering.
“We have a long history of inorganic growth at ironSource, and we plan to continue being active buyers in the marketing technology space as the industry consolidates around a few big players,” stated Omer Kaplan, CMO and co-founder of ironSource. “We believe strongly in video and the growth opportunities it represents.”
Digital video ad spend is expected to reach $28.08 in the U.S. by 2020, according to Cowan and Company. Marketers and advertisers are spending on average more than $10 million annually on digital video, representing an 85% increase from 2 years ago, says the IAB.
ironSource claims to control 40% of the global rewarded video market already. Rewarded video ads have become a staple of free to play mobile games, and an avenue for app discovery. Developers like them because they minimize the interruption of gameplay, and users like them for the rewards.