Tremor International Ltd Stock

Tremor International Ltd. operates as a global company. The company offers an end-to-end software platform that enables advertisers to reach relevant audiences and publishers to maximize yield on their digital advertising inventory. The company uses its proprietary technology to deliver impactful brand stories to target audiences through digital ad technology and advanced audience data. The company’s omni-channel capabilities deliver global advertising campaigns across all formats and channels, with an expertise in Video and CTV.

The company is a collection of brands uniting creativity, data and technology across the open internet. The company’s end-to-end, video-first platform facilitates and optimizes engaging advertising campaigns for brands, media groups and content creators worldwide—enabling powerful partnerships and delivering meaningful results.

The company addresses the broad and evolving digital advertising market through its three core offerings, including proprietary DSP solutions that advertisers leverage to manage digital advertising campaigns, a proprietary SSP solution that publishers leverage to optimally monetize digital inventory and a proprietary data management platform (DMP) solution, which is integrated with both its DSP and SSP solutions. The company’s versatile DMP solution benefits from vast amounts of data and provides optimal campaign recommendations for audience sets by employing advanced machine learning algorithms. The contextualization of the data synthesized by the company’s DMP solution provides advertisers with a comprehensive, personalized view of audiences, enabling more effective targeting across formats and devices and optimizes the monetization of publisher inventory. By combining these three proprietary solutions, as well as integrations with industry-leading partners, the company provides an end-to-end platform that is dynamic and flexible to its customers’ needs, which enables it to address more digital ad spend.

The company’s customers consist of both ad buyers, including brands and agencies, and digital publishers. The company’s platform included a diversified customer base of approximately 1,250 active customers and approximately 1,530 active publishers as of December 31, 2022, with approximately 20 billion unique users for the month ended December 31, 2022 and served advertisements in 246 countries. The company generates revenue through platform fees that are tailored to fit the customer’s specific utilization of its solutions and include a percentage of spend, flat fees and fixed costs per mile (CPM).

Growth Strategy

The key elements of the company’s strategy are to focus on core areas of growth in video and CTV; introduce new products and invest in its Technology Stack; strengthen its relationship with existing customers; expand its international footprint and united states market share; continue to bolster its data capabilities; and leverage its industry expertise and target select acquisitions.

Solution and End-to-End Technology Platform

Solution

The company’s end-to-end platform is a comprehensive software suite that supports a wide range of media types (e.g., Video, display, etc.) and devices (e.g., mobile, CTVs, streaming devices, desktop, etc.), creating an efficient marketplace where advertisers can purchase high quality advertising inventory from publishers at scale. The company’s solutions offer many advantages, including an advanced real-time bidding auction optimization engine, a quality and global marketplace, and flexibility to enact concurrent campaign strategies that drive strong returns for investments in digital ad real estate.

The company’s platform handles approximately 135 billion daily ad requests, approximately 1,500 terabytes of daily data, and approximately 320 million daily ad impressions. Each transaction is processed in a fraction of a second (55ms on average) and powered by its real-time bidding engine, which leverages private servers and infrastructure in three strategically located data centers located in the United States, Europe and the Asia Pacific.

Key Components of the company’s platform include:

Demand Side Platform – The company offers self-service DSP solutions for advertisers and their agencies to efficiently and intuitively manage omni-channel campaigns. The company also offers full-service options to agencies in addition to its self-service DSP solutions. The company’s DSP solutions provide access to wide-reaching and high-quality inventory, audience targeting, and advanced reporting to optimize advertising campaigns, improve ROI, and gain deep insights and analytics into brand engagement.

Data Management Platform – The company offers a fully integrated DMP solution that sits at the center of its platform that unlocks the power of data flowing through its DSP and SSP solutions. The company’s DMP enables advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. The company’s DMP provides insights and recommendations pertaining to geographic, behavioral, and demographic data, among others in a unified solution. The company is an integrated DMP is a key component to the marketplace because it enables advertisers and publishers to use and activate data to target audiences with more accuracy across several different channels.

Supply Side Platform – The company offers a self-service SSP solution for digital publishers to sell their online ad placements via a real-time bidding auction across all screens, including mobile, CTVs, streaming devices and desktops. The company’s SSP provides access to significant amounts of data, unique demand and a comprehensive product suite to drive more effective inventory management and revenue optimization.

Analytics/Artificial Intelligence – The company collects, synthesizes and analyzes the data sets across its platform through extensive artificial intelligence technologies and advanced machine learning capabilities. These recommendations ultimately provide key insights into valuable ad impressions and forecasts for auction behavior. The company’s technologies drive optimal results for its advertisers and publishers.

Advanced TV (ATV) Platform – The company offers broadcasters and demand side partners an advanced planning product for their premium linear TV and digital video investments that allows broadcasters to improve yields on their inventory while helping to maximize return-on-ad-spends for advertisers. The company recently launched a cross platform offering which allows broadcasters to package both linear and digital supplies together for their upfront deals. The company is also working to expand this offering for demand side agency partners who it would benefit from such a solution to reduce waste and offer maximum flexibility to their clients when budgets are shifted across linear and digital premium video during the broadcast year. The integration of ATV into Tremor’s technology stack creates a significant growth opportunity for the company in the premium activity of the market where it can create precise cross platform planning and activate the digital portion of the cross-planning via Tremor International’s digital activation ecosystem.

Brand intelligence – An audience insight and activation platform unifying insights from cross channel data sources with the additional ability to leverage first party data. This platform helps its customers gain a comprehensive view of their audiences to better plan, optimize and activate their advertising campaigns.

DSP

Key features of the company’s DSPs include:

Comprehensive, insightful and modern self-service interface that intuitively supports the needs of advertisers and enables them to operate and implement strategies effectively and independently.

Superior artificial intelligence-based real-time bidding models, to drive efficient buying and meet its customers’ key performance indicators.

Enables seamless access to and integration of an advertisers’ own first-party data, its proprietary data and a wide list of premium third-party data segments.

Meaningful forecasting and reporting tools, as its DSPs can accurately measure how many households and unique users an advertising campaign is able to reach through any targeting initiatives to ensure campaign strategies are achievable.

Robust omni-channel reporting and insights tools which enables advertisers to analyze across device and channel campaign effectiveness against various key performance indicators with the ability to compare their statistics through various comprehensive benchmarks.

Access to its creative studio (Tr.ly) with deep expertise to support a variety of creative needs and generate ideas to enrich messaging and consumer engagements.

Data and brand surveys that provide meaningful information for advertisers to evaluate brand lift and behavioral and emotional engagement.

The company’s proprietary brand safety technology uses a combination of machine-learning and propriety algorithms, as well as data ingestion from industry-leading verification providers to develop and maintain dynamic block lists and a scoring mechanism to grade its traffic before, during and after ad requests are made.

SSP

Key features of the company’s SSP include:

Comprehensive and highly intuitive self-service platform which enables publishers to easily integrate into its ecosystem, manage their digital inventory, access reporting and insights, and transact with their programmatic buyers through private marketplace deals. Once integrated with its SSP solution, publishers also benefit from its unique and differentiated demand available through the company’s proprietary DSP solution and additionally through demand facilitation initiatives driven by its global salesforce.

Connection to the world’s largest DSPs and compatibility with most AdAge top 100 brands. The company’s SSP solution delivers over 6 billion advertisements to viewers every month and optimizes content for different formats, builds effective custom audiences and delivers impressive return on investment (ROI) at scale.

Omni-channel marketplace with access to approximately 1,530 active publishers across the globe and exclusive access to VIDAA digital advertising inventory.

Industry-leading forecasting analytics and data-driven yield optimization tools to maximize inventory monetization and delivers impressive ROI at scale.

Enables publishers to customize their experience through the ability to opt out of certain ad verticals or specific advertisers in order to customize demand for their media and manage channel conflicts.

Support for all major integration types, including open real-time bidding, header-bidding solutions, as well as its proprietary client-side solutions, including its video player, giving publishers the flexibility of choosing the methods through which they want to offer their ad inventory to advertisers.

Recent acquisition of SpearAd, a platform purpose-built for broadcasters and TV content companies to deliver seamless TV-like experiences in CTV, linear addressable TV and over the top (OTT) environments. The platform includes a robust user interface with advanced data driven tools for TV ad pod management and monetization on both pre-recorded and live TV content, as well as a unified auction tool, enabling broadcasters and publishers to seamlessly mediate their demand partnerships.

Data and Data Management Platform (DMP)

Key features of the company’s DMP include:

Audience segments that are generated directly within its platform, leveraging a collection of first- and third-party data sets, including strategic data partnerships. The company’s platform also enables advertisers and publishers to connect and leverage their own first party data for activation across its ecosystem. Based on its platform’s statistical models, the company is able to uncover deep insights from behavioral data, feeding into a machine learning platform that allows it to achieve its advertisers’ and publishers’ performance metrics.

Ability for advertisers and publishers to layer custom data segments against their campaigns and private marketplace deals.

Includes unique data driven insights available through its self-service user interfaces or custom built and curated by its team, along with the ability for advertisers and publishers to forecast scale, reach and media cost against the audiences they are looking to target.

Provides for audience driven creative optimization, combining the power of the DMP with its proprietary creative platform (Tr.ly).

Specific focus and expertise around the collection and packaging of TV viewership data for activation and insights, providing advertisers strong content retargeting, insight and attribution capabilities on digital formats.

The company’s EQ product, fully integrated into its data management platform (DMP), is a proprietary emotional analytics tool that provides advertisers with the data they need to maximize the emotional, social and business impact of their advertising.

The company’s EQ product compiles surveys along with facial recognition of users to see how those individuals respond to questions or advertising, which further engages targeting for its advertisers’ campaigns.

Key features of ATV include:

Linear TV Planning: Data driven linear TV has been growing in significance. The company’s Linear TV Planning feature allows sellers at national broadcasters to generate linear TV plans during and after upfronts. Budgets ranging from hundreds of thousands to hundreds of millions of dollars can be allocated at the program airing with a high level of granularity around key data points, such as schedules, days of weeks and time of the day. While data driven linear TV is expected to grow slowly due to digital content taking precedence, it is expected to remain a significant portion of the ad spend for many years to come.

Cross-Platform Planning: The company’s Cross-platform planner allows sellers and buyers to use a deduplicated audience universe across linear and digital channels to produce a precise plan for upfront investment and post upfront adjustments. The company launched this product with its strategic national broadcaster clients. The Cross-Platform Planning platform was built using advanced data science and AI/ML methodologies.

Brand Intelligence

Key features of Brand Intelligence include:

A platform that unifies disparate data across digital, linear and social environments to uncover insights and turn them into robust and seamless targeting capabilities.

Superior artificial intelligence and natural language processing capabilities, to drive accurate and unique insights and changes in behaviors and trends.

Provides clients with a comprehensive set of capabilities to discover, understand, and keep pace with their customers across channels, so they can leverage real time insights to inform and enrich tactical activation based on consumer behaviors, sentiment, trends and interests.

Leveraging a multitude of rich, cross-channel data sources, including linear TV, CTV, digital and social, combined with a proprietary panel, for clients to extend their reach with greater relevance across targeting strategies and tactics.

Customers

The company’s customers consist of leading global brands and advertising agencies on the demand side, and high-quality publishers on the supply side, across several industries, including retail, entertainment, consumer, financial services, healthcare and more. The company had approximately 1,250 active customers for the year ended December 31, 2022, including prominent members of the U7 Council, such as American Express Company, GSK plc, Proctor & Gamble Co, Unilever plc and others. This figure includes combined customer reach between both Tremor International and Amobee for the year ended December 31, 2022.

On its demand side, the company has brands and agencies using its self-service offerings, its own managed services offerings and third-party DSP integrations. Buyers and advertisers transact through these tools. On the supply side, the company services digital publishers, app developers and subscribers to its self-service platform.

The company generally enters into contracts with its customers either through master services agreements (MSAs) and/or insertion orders. An insertion order is an agreement entered into by an advertiser and publisher to govern the terms of running a particular campaign. The company’s customers typically enter into MSAs with it that give users access to its platform. These MSAs typically have one-year terms that renew automatically, unless earlier terminated.

The company has long-standing relationships with its customer base. The company’s customers tend to repeatedly use its platform, illustrated by its Contribution ex-TAC retention rate of 80% for the year ended December 31, 2022.

Sales and Marketing

The company’s publisher operations team onboards publishers and engages directly with the customer to support their needs and effectively monetize inventory.

As an end-to-end platform, the company has highly qualified sales teams dedicated to acquiring new premium advertising and publisher customers, which the company further grew and enhanced through the acquisition of Amobee, and subsequent integration of those sales team members into the combined company. These teams focus on selling access to its platform through self-service and managed service offerings.

The company has dedicated teams focused on post-sale support to ensure customer success as well. The company’s client success team onboards advertisers and liaises directly with the customer on a regular basis to optimize delivery against key performance indicators and help meet their goals throughout the campaign life cycle.

Intellectual Property

The company owns more than 50 patents. It relies upon common law protection for certain marks, such as Tremor and Tremor Video.

Research and Development

For the year ended December 31, 2022, the company’s research and development included $33.7 million.

Competition

On the demand side, companies, such as Roku Inc., Viant Technology, Inc., Samsung, Inc. and The Trade Desk, Inc. are some of the company’s key competitors.

On the supply side, companies, such as Magnite, Inc., Freewheel and PubMatic, Inc. are the company’s main competitors, all of which compete to provide publisher inventory to advertisers.

History

Tremor International Ltd. was founded in 2007. The company, formerly known as Taptica International Ltd., was incorporated in Israel under the laws of the state of Israel in 2007.