Kargo, a provider of advertising solutions, announced that it has acquired VideoByte, an ad marketplace specialized in contextual advertising across connected TV (CTV) and over the top (OTT) for an undisclosed amount. As part of the acquisition, David Naffis, the CEO of VideoByte, will join Kargo as the general manager of CTV. 

The acquisition is expected to bring VideoByte’s CTV advertising technology to Kargo, allowing the company to offer a more comprehensive solution that includes video, publisher tools, exclusive formats, commerce, and socials. 

Kargo offers an omnichannel advertising platform for marketers, premium publishers, and consumers. Its proprietary AI-powered algorithm uses predictive performance analysis and natural language processing (NLP) to identify the contextual contexts where audiences can be reached most effectively. As of January 2023, the platform has served more than 200 brands globally.

Analyst QuickTake: With this acquisition, Kargo will also be able to leverage VideoByte's unique "audio to video" (A2V) advertising technology that allows publishers to integrate videos into their audio content, as well as create QR codes that act as interactive ads.