Glam Media has acquired AdaptiveAds, a startup based in Mumbai, India that serves display ads targetable by the demographic characteristics brand advertisers understand (such as “Women 24-40, Fashionista, Beauty”). It calls its contextual display ads BrandWords. They will now be called Glam AdaptAds.
In addition to the ad targeting, AdaptiveAds brings a self-serve ad server for ad agencies, as well as “brand engagement” tracking and reporting tools.
The purchase price was not disclosed, but AdaptiveAd was shopping around a series B round with a valuation in the $25 million to $40 million range when Glam entered the picture and snapped them up. The three-year old company raised $2 million in late 2007, and then another $1.5 million in a series A, for a total of $3.5 million. Draper Fisher Jurvetson is an investor in both AdaptiveAds and Glam Media.
Glam Media sites and its affiliate network collectively saw the second-fastest audience growth last year among comScore’s top 100 Web properties. It was also the ninth largest publisher of display ads, serving up an estimated 2.1 billion ad impressions per month.
With the acquisition, Glam will be keeping 20 employees, bringing its total up to 200. This comes after layoffs and other recent cutbacks. Also, in an effort to conserve cash, Glam has slowed down payments to its partner publishing sites.
How is this going to help Glam?
Hey Daniel,
The way I see it is that this is a move to keep all aspects of their business in house. To integrate vertically if you will.
I am not overly well-read into how Glam media runs its ad operations, but having your own targeting system would be extremely handy giving the percentage rates these services tend to charge publishers.
I assume that they have run the amortization numbers and the ROI here is positive.
(or they just got a steal)
Doesn’t it feel like 2001 again? The markets have crashed, valley companies are starting to get bought or shut down. Massive consolidation like in the last downturn, and the big will get bigger.
Good move for Glam, will make brands like them more, just like Google did when they acquired AdSense/AdWords for Search Ads
That sounds pretty promising. I’d like to see some application to real estate in the near future what a great opportuity for Sellers or their agents to market their homes to a qualified demographic.
-Bob in Denver
Ok, Glam is a POS. Way over-valued. Bad Technology, tons of their top employees have left. This acquisition was stupid as well. DFJ mad a bad investment in glam, and they are buying technology that their hires couldn’t build. I CAN’T WAIT FOR THIS COMPANY TO FAIL.
the glam monster grows bigger
Acquisitions are cheaper in a down market. Plus, the online market in still in growth stages in Asia.
Glam acquired Codex Media in Germany late last year too. They are trying to expand quickly worldwide through acquisitions with their late stage funding.
What ever happened to Chictopia?
At any rate, I bought one of these sweet coats via techbargains. It doesn’t get that cold in Socal, but some mornings you have to crank the heat on.
http://www.tech...Item.cfm/151289
I got nike takos on TB for like $30 shipped from nike.com. Techbargains is the shiznit.
Well, this is so Glam!
He hoo
it seems a great buy but will Glam be able to get the best out of this, remains to be seen. will be watching this space
why has techcrunk failed to pick up on the fact that glam.com notified their entire staff last friday that 20% would be taken out of their paychecks?….and this was after the checks had been paid. sounds like a company that should be making acquisitions.
@bebop,
Complete and total Bull. Last week was not a pay check period. Check you facts before slinging mud.
Glam moved a small % to variable in November, which at the rate their are performing would mean no change to possibly making more and there has been no change since then.
I feel all gloat-y because I predicted this would start happening this year in the women’s ad network space:
http://www.esca...a-down-economy/
I’m a little confused by this Glam deal, though. They are having massive inventory issues right now, and don’t understand how taking on more publishers is going to solve this problem. Hopefully AdaptiveAds comes with an impressive client list, but I have a hard time believing that it’s THAT good.
I think that this is only the first of several acquisitions we see in the womens ad network space. It’s way too saturated right now and has *never* had a good ad inventory to publisher inventory ratio.
Wendy-
I am confused by your statement “They are having massive inventory issues right now” I am a Glam Publisher and and really glad I am with Glam in these tough times. They are reliable, pay well, and the last 2 months asked us for MORE ads in our site. What issues are you talking about? For my site December was one of the best months ever with Glam.
Reading you bio, you run a tiny competitor to Glam, so full disclosure would have been nice.
Nice read there Wendy! I wonder how Glam is handling Q1 right now.
TY
This acquisition looks like it was directed by DFJ, the word I heard was that Adaptive Ads was not getting much traction for a Round B, and I this makes it looks like a “successful” startup on the DFJ portfolio.
the glam monster grows bigger
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