March 14, 2008

Microsoft Picks Up Another Ad Startup: Rapt

Erick Schonfeld

17 comments »

rapt-logo.pngWill Microsoft’s hunger for advertising startups sever be satiated? Even as it continues to pursue the big Yahoo merger, it keeps picking up small startups to fill out its advertising software business. A couple weeks ago it was micro-segmenting software startup Yadata (for $20 to $30 million) . Today it is Rapt (the price was not disclosed). Rapt offers Web-based “yield-management” software for Web publishers to help them manage their advertising inventory based on price and other factors. According to AdWeek:

Rapt is used by several top Web publishers to manage ad-inventory sales. It forecasts how much a publisher can get for ad placements, and whether they should sell the spots themselves or use ad networks. The company works with publishers like CNET Networks, Dow Jones and The New York Times. Rapt also helps Microsoft manage inventory on its own sites.

Rapt will be rolled into the Atlas Publisher Suite within the aQuantive business (which Microsoft bought for $6 billion last May). Rapt, with 85 employees, is a small deal that helps Microsoft fill out its technology checklist. With the recent conclusion of Google-DoubleClick deal, it looks like the massive consolidation of pure-play advertising deals is trickling down. (Quigo, bought by AOL for more than $300 million, was the last major exit). We’ll see more small technology acquisitions like this one, but for the big ad networks that didn’t get bought by now, their chances of a big payday going into a recession are slim.

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Trackbacks/Pings (Trackback URL)

  1. Microsoft Buys Rapt - cool ad technology « AdViking
  2. Stick-To-It-Ness Pays: Rapt To Be Acquired by Microsoft « I’m Not Actually a Geek

Comments

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  1. HoHo

    late again. i got the news elsewhere b4 TC published it.

  2. Paul

    Will Microsoft’s hunger for advertising startups sever be satiated?

    Sever. Heh.

  3. Tostada-man

    MSFT is getting ready to release free MS Office online. So they need a revenue generating machine to support that.

    The new online Office will be full of ads. Thats why MSFT is buying all there ad companies.

  4. crsh

    “Web-based “yield-management” software”

    /shudder
    /facepalm

  5. Jason

    Spotrunner or Aditall are next….

  6. antje wilsch

    I just wish it would fix its own adcenter first. It’s so annoying. It indexes words and then “removes them for violation” one at a time days later. They removed “biography” “story” and “storytelling” from our list as being irrelevant (uh, our entire site is about stories and writing and biographies, so doesn’t look like anyone even bothered looking at the site) but the worst was that it would be one day one word, then the next day another word, then two days later another word. We had to open separate support tickets each time over the period of a couple of months. Why can’t they just challenge them all at once like google does? Luckily we knew people to call at MSFT to get it to all looked into, because otherwise we might have closed the entire account due to annoyance.

  7. JosefVirek

    Google. your days are numbered.

  8. weeeee

    Will Microsoft’s hunger for advertising startups sever be satiated?

    gotta typo on sever

  9. Eric Willis

    Microsoft has been aggressively acquiring companies over the last few months. This looks like a good fit into their long term online advertising goals.

  10. Rajeev

    Interesting…A contact of mine used to work at rapt and during that time (~2001) rapt’s focus was inventory management for physical goods, i.e. supply chain optimization….I guess they nicely morphed themselves into ad inventory management (SCO market doesn’t look that great anymore anyway).

    Great job.

  11. Louis

    Sever say sever.

    Hopefully MSFT actually turns these purchases into something magical for a change, like Google always does, at some point.

  12. jojo

    Rapt is mission critical at Yahoo. One way to get Yahoo is for MSFT to raise pricing or threaten to cut off Yahoo from the use of rapt. Legally, of course.

  13. Sneezy Melon

    “Rapt is used by several web administrators”

    Several?? Is is so??

  14. CMU

    That is a good exit for rapt. Rapt is a java shop, I don’t know how the technologies can integrated into the microsoft platform. For microsoft, I think they just want rapt’s clients and probably professional service…

  15. RSK

    Not only are they Java shop but also heavily ORACLE DB technology shop floor.