India’s second largest e-commerce
firm Snapdeal.com has acquired Reduce Data, a US-based advertising platform,
for an undisclosed amount as online retailers bet on advertising to become a
popular key business. Snapdeal has signed an acquihire deal, a deal done
primarily for expertise of the acquired firm staff.
Reduce Data helps brands to deliver
advertising strategies for consumers across platforms and devices. The company
claims that its platform leverages artificial intelligence, real-time data and other
tools, delivering high return on investment for advertising campaigns. The company
currently has customers across US, UK and India.
Most large e-commerce firms,
including Flipkart and Snapdeal, are trying to build large advertisement sales
teams and improving their technology to show ads based on data collected on the
shopping habits of millions of Indians. Ad revenues are expected to provide a
much needed boost to margins for e-retailers and create an additional large
revenue stream for them.
Flipkart acquired AdIQuity
Technologies, a mobile advertising technology firm in March in a move to
improve its ad platform. Globally too e-commerce firms get significant chunk of
revenues from ads. Acquisition of Reduce Data by Snapdeal is the company latest
push into strengthening its advertising business. The company introduced ads on
platform in May 2014.
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