Amazon Acquires Sizmek Ad Server to Bolster Advertising Business
Amazon expands its growing advertising division by purchasing Sizmek's ad serving and dynamic content optimization assets. The acquisition positions Amazon as a stronger competitor against Google and Facebook in the digital ad market.
Amazon acquires Sizmek's ad serving and dynamic content optimization businesses to strengthen its rapidly growing advertising division. The two companies share many mutual customers, and Amazon promises to maintain the high service standards that Sizmek users expect. For now, Amazon operates the Sizmek products separately from its core Amazon Advertising platform.
This strategic move comes as Amazon's advertising revenue expands quickly, reaching $2.7 billion in the most recent quarter with a 34 percent growth rate. Although advertising remains a small fraction of Amazon's overall e-commerce revenue, the tech giant increasingly positions itself as a major challenger to the dual dominance of Google and Facebook in the online advertising space.
Sizmek enters this acquisition after declaring bankruptcy earlier in the year, making Amazon's purchase a rescue of its key technological assets. The financial terms of the deal remain undisclosed, but the integration of Sizmek's tools provides Amazon with advanced capabilities to attract more advertising partners and expand its market share.