Perion Network Stock

Perion Network Ltd. and its wholly-owned subsidiaries (Perion) operate as a global technology company.

The company provides brands, agencies and publishers with the holistic ability to identify and measurably reach their most valuable customers – across all numerous digital channels, including retail media – with high impact creative units that are orchestrated by its proprietary Intelligent Hub (iHUB). The iHUB which connects the supply and demand sides of the marketplace, and as a result is capable of bringing Perion and its client’s significant efficiencies.

The company operationalizes its proprietary, creatively-led solutions based billions of data points delivered from years of user engagement and interactions with different kinds of advertising units. These units are developed based on the requirements of the company’s advertisers and its cultural insights. To assure that the company’s High Impact Advertising creative can be distributed to the right audiences, it has built and grown its curated network of publishers where the company’s High Impact Advertising are served. The company’s curated network is also important because advertisers are increasingly concerned about brand safety - they don’t want their ads to appear alongside of questionable or controversial ads, which could have a negative impact on their brand name and reputation.

The company’s Search monetization solution consists of the following 3 offerings:

Website Monetization - leveraging intent signals to deliver text ads, shopping offers, and premium news that enable site owners to gain higher revenue and enhanced user engagement.

Search Mediation - enables media traders to monetize search demand and achieve higher yields by leveraging the machine learning that drives the company’s mediation platform.

App Monetization - using intent-based search signals to monetize publishers' desktop and mobile apps, white-label search engines and more.

Vidazoo, the company’s video monetization platform, meets those needs by supporting publishers with best-in-class video technology and monetization. Through Vidazoo’s proprietary video platform the company offers a wide range of products, through which publishers can deliver an enhanced user experience, increase video content consumption, and identify new monetization opportunities.

Vidazoo’s most commonly distributed technology products are: Online Video Player, Content Monetization System, AdServer and Yield Ad Management Platform.

In addition, Vidazoo provides monetization services and generates revenue via an ad marketplace that connects 28 programmatic advertisers with exclusive high-quality and brand-safe opportunities for video inventory across 99 publishers worldwide.

Perion’s Content Monetization Platform (branded as Wildfire) provides publishers with a profitable and strategic path to the future. In the face of declining revenue, Wildefire drives incremental growth. The Wildfire platform uses intent signals to keep users continuously engaged, as it repeatedly optimizes content, advertising and layout within owned and operated mini-sites. The company’s machine learning employs AI analysis and deploys tens of thousands of combinations of content and advertising to achieve maximum user engagement and publisher profitability. Wildfire capabilities allow the company to optimize revenue-per-session, as well as refine and inform its decision-making by identifying pockets of profitability and loss.

Paragone allows advertisers to observe, in real-time, their cross-channel paid digital advertising activities, execute campaigns with one unified UI, and optimize budgets across channels using the platform AI and rule-based techniques.

Growth Strategy

The company’s strategy is to grow its business by offering innovative and diversified advertising, search, awareness and performance solutions to the world’s leading brands, agencies and publishers. These solutions, driven by advanced technology, make each component of the funnel – awareness, consideration, intent and purchase – operate more effectively.

The company will achieve this by offering compelling data-driven, digital advertising solutions and search monetization through holistic customer experiences and innovative platforms that cover the three main pillars of digital advertising - ad search, social media and display / video / CTV.

The key elements of the company’s strategy are to Growth Through Innovation; growth through ChatGPT; growth through connected devices; growth through retail media; growth through iHUB; and growth through search monetization.

Advertising Solutions

The technology backbone behind the company’s Display Advertising solutions is designed to connect brands with consumers via meaningful digital interactions and experiences. This is done through 8 key components, such as Supply Management Platform; Demand Management Platform; Analytics Platform; Creative Platform; AI Platform; Actionable Performance Monitoring; Online video player; and Content monetization system.

Supply Management Platform

The Supply management platform operationalizes relationships with the company’s publishers by treating every impression in an optimal manner. The company’s platform is driven by the business requirements and monetary expectations, which in turn determines which ads are allowed, what prices are expected, and the allowable frequency. All components in the company’s supply management platform are based on proprietary technology and are based on its specific needs and use cases.

Demand Management Platform

The demand management platform addresses the needs of advertisers for campaign planning and design with a system that delivers a recommendation that will hit the specific goals of any advertiser. It recommends advertising channels, audience targeting strategy and ad product mix which are all based on benchmarks and past experiences of the advertiser. Once the plan is created, the data-driven platform pushes instructions to the campaign management system for execution, based on parameters like dates, volume level, list of supply sources and campaign goal.

Analytics Platform

The company’s Analytics platform provides information and performance metrics and insights, demonstrating the value of its solutions for its customers. This is flexible system reports all the required data, including total budget; the delivery of reach and impressions; invested engagement metrics, etc. The analytics platform supports the company’s data driven culture – providing business stakeholders full visibility of KPI’s on key processes while facilitating data and reporting in a self-service manner, with pre-build dashboards and reports.

Creative Platform

Perion’s creative platform is a key component of the company’s solution. It’s a rich media platform which leverages its proprietary ad units, and is tailored to the needs of its advertisers, providing them with a comprehensive solution to create compelling, engaging, dynamic, cross-platform and high-impact advertisements. The company learns, it adjusts, it continually iterates - allowing it to create engaging high-performing user experiences that perform top-mid and bottom-funnel.

AI Platform

The company’s AI platform uses machine learning to bring deep intelligence to the various phases of campaigns: planning, activation and reporting which utilize models built on top of its data platforms. Based on campaign-to-campaign learnings and complex heuristics, the platform generates better performance for its customers and improved efficiency by providing rules-based and budget optimizations.

Actionable Performance Monitoring

The Actionable Performance Monitoring platform supports the various phases of campaign management across different channels. The platform manages each of the planning, execution, optimization and measurement phases and simplifies the complexity of cross channel advertising for brands and agencies while optimizing performance through AI in one unified, actionable holistic and intuitive dashboard.

Online video player (OVP)

The company’s proprietary online video player and integrated ad server allows publishers and brands to upload, manage and stream video content. Vidazoo’s OVP is certified with the major advertising platforms and compatible with all devices and video formats. The Vidazoo OVP is integrated with a proprietary ad server, ensuring a consistent user experience by reducing latency and errors, adding to its inherent power and efficiency. Latency is recurring issue in video; consumers are impatient and significant amounts of revenue is lost when users abandon a site.

Content Monetization System

The content monetization system provides publishers the tools to maximize ad revenue from reader sessions, optimizing traffic that Perion can efficiently drive to a publisher site. The system integrates ads within the content layouts, at the page level, constantly a/b testing for the most enhanced performance, while maintaining a user-friendly experience. This system is powered by a highly customized header bidding technology which controls ad delivery with optimal view ability measures as it leverages a variety of programmed sources.

Search Advertising Solution

The technology of the company’s search solution consists of various systems, such as publisher management system; search demand management system; monetization products; and AI system.

Publisher Management System

The publisher management system provides publishers access to an online dashboard providing analytics and performance optimization tools, as well as reports that enable them to maximize their distribution and monetization.

Search Demand Management System

The search demand management system integrates and onboards demand vendors to the company’s monetization products. The integration supports multiple vendors according to predefined configurations and rules, enabling various business models and offerings, and making it possible for Perion’s R&D team to innovate on the search stack.

Monetization Products

The company’s monetization products are designed to deliver algorithmic search results concurrently with sponsored listings, both of which are served for the same search queries. They can be operationalized in different ways, including the transmission of search queries to search engines such as Bing, search Feed APIs operated on publishers’ domains and an enriched and optimized hosted search results page which offers an enhanced user experience.

AI System

The AI technology behind the company’s search solutions optimizes the various phases of the funnel including intent detection and demand optimization to yield performance optimization and maximized consumer experience.

Products Under Development

Innovation is a core driver of the company’s culture and operations and essential for its growth. Hence, the company invests substantial resources in research and development to develop new solutions, offerings, applications and services, improve its core technologies and enhance its technology facilities and infrastructure and capabilities.

The company’s research and development activities are primarily conducted in Israel and Europe, focusing on the development of new services and platforms solutions that will offer its customers standout brand experiences, building on its high-impact units and recognizing the move to video; effective distribution tools, increased monetization capabilities through content features and applications, and enhanced optimization via powerful and reliable data analytics driven by AI. In addition, the company is continuously improving existing products through software updates and upgraded features. The company’s research and development department is divided into groups based on scientific disciplines and types of applications and products.

Research and Development

The company’s research and development expenses were $34.4 million in 2022.

Competition

Some of the competitors are larger and have more financial resources than the company has, including, Google, Facebook, Amazone and Microsoft – the latter is both a strategic partner and competitor in that Bing generates organic traffic independent of its publisher network. The company also competes with other companies that offer consumers the ability to search outside of search engines themselves, such as IAC, System1and others.

Government Regulation

The company is subject to the U.S. federal and state laws regarding copyright infringement, privacy and protection of user data, many of which are subject to regulation by the Federal Trade Commission. These laws include the California Consumer Privacy Act (CCPA), which provides data privacy rights for consumers and operational requirements for companies and amended by the CPRA which imposes additional notice and opt out obligations, including an obligation to provide an opt-out for behavioral advertising. The Digital Millennium Copyright Act, which aims to reduce the liability of online service providers for listing or linking to third-party websites that include materials that infringe copyrights or the rights of others, and other federal laws that restrict online service providers’ collection of user information on minors as well as distribution of materials deemed harmful to minors. Many U.S. states, such as California, have adopted or are planning to adopt statutes that require online service providers to report certain security breaches of personal data and to report to consumers when personal data will be disclosed to direct marketers. There are also a number of legislative proposals pending before the U.S. Congress and various state legislative bodies concerning data protection which could affect the company.

History

The company was incorporated in the state of Israel in 1999. It was formerly known as IncrediMail Ltd. and changed its name to Perion Network Ltd. in 2011.