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Taboola Targets Ecommerce And Affiliate With $800M Deal For Connexity – AdExchanger

Taboola Targets Ecommerce And Affiliate With $800M Deal For Connexity – AdExchanger
Written by publishing team

Tabbouleh was a busy month. Three weeks after the company went public on Nasdaq, on Friday it acquired commercial advertising technology company Connexity for $800 million.

Engagement is a logical and attractive acquisition target.

Taboola places recommendation boxes on publisher sites to connect visitors with advertisers and other publishers. The correlation is also rooted in the sell side. It connects visitors on publishers’ websites with merchants and retailers, through affiliate link activity — Connexity acquired marketing affiliate Skimlinks last year — and through price comparisons it owns and operates and other shopping sites, such as PriceGrabber.com and Shopzilla.com.

There is some overlap between the publisher Connexity’s 6000 customers and the publisher of Taboola’s 9,000. Connexity’s CEO Adam Sengolda said Connexity’s list of retail partners, including Macy’s, eBay, Walmart, and a handful of smaller merchants, is a net new addition. to Tabola.

When Taboola completes the acquisition and merges the back end between the two companies, product SKUs (“stock keeping units,” the retail parlance for an individual product) can be targeted from Connexity retailer customers to Taboola’s recommendation links. Think: An ad for an individual product in a Taboola recommendation box. Singolda said this additional demand will improve returns for Taboola publishers.

Most importantly, the earnings from these ads will go into business earnings, not ads, since they are paid based on transaction, not clicks. Increasing commerce-based revenue is a long-term priority for many online publishers, so adding these links will boost commerce growth.

In addition, the two companies can cross-sell and sell-in to each other, Singolda said.

Taboola plans to get publishers to embrace Connexity by saying it will work in tandem with its commercial content strategy and revenue diversification planning.

“I think every digital publisher will have a commercial division on the site,” Sengolda said. The addition of Connexity will position Taboola in the emerging commerce divisions of publishers, incorporating its technology just as Taboola is built into web content pages.

Taboola and Connexity also need to standardize because walled parks are controlling more and more monetization from the web, and there is less data available to third-party tech companies outside of those walled parks.

Last year, Connexity shut down its Hitwise web analytics business, because it could no longer get tracking data across sites. Also last year, Amazon removed third-party sellers from its affiliate program, so Skimlinks, the affiliate network acquired by Connexity, no longer gets a portion of the traffic it sends to Amazon (i.e. it now no longer sends traffic to Amazon.).

“Amazon has millions of merchants, but merchants basically have Amazon,” Singulda said.

If Walled Gardens raise their bridges, it is up to ad tech companies and independent e-commerce companies working across the open web to build a stronger, unified network that spans users, publishers, and merchants in order to compete.

“Virtually every brand will continue to have a storefront with Amazon,” he said. “We need to bring this e-commerce potential to the open web.”

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