Taboola, an AI-powered content discovery platform, entered into an agreement with Microsoft to launch a new native bidding service, which allows advertisers to bid for ad inventory across the open web, including display, social networks, and other platforms.
This partnership, which would be valid through July 2024, builds on Taboola’s existing revenue share arrangement with Microsoft. The new service is expected to go live by Q1 2022 and would be piloted on Microsoft’s digital properties as well.
The firm expects the new partnership would drive higher ex-TAC revenue (net of ad acquisition costs) in the coming years. The firm also reaffirmed its revenue guidance for 2021 and expects a revenue of USD 1.4 billion in 2021.
Analysts expect the partnership to complement Taboola’s USD 800 million acquisition of Connexivity, one of the largest ecommerce advertising media platforms on the open web, in July 2021.
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