IronSource confirms merger with mobile monetization firm Supersonic

Gil Shoham, CEO of Supersonic.

Israeli tech firm IronSource has confirmed that it is merging with

Above: Rewarded Video from Supersonic gives rewards to users who view video ads.

Image Credit: Supersonic

Supersonic has been growing its presence in mobile monetization through rewarded video advertising, where a user can gain currency to buy things in a game or app by watching video ads.

App discovery firm IronSource has 550 employees, including 450 in Israel, as well as those in Beijing, San Francisco, and New York. IronSource revenues are estimated at over $300 million a year and the company’s net profit at about $100 million a year. This is the seventh acquisition by IronSource, which was founded in 2010. It delivers more than 6 million targeted installs of apps per day.

The companies will offer a single, centralized software development kit (SDK), which includes mobile video, offer wall, interstitial, display, and full mediation support for all ad products.

Gil Shoham, the chief executive of San Francisco-based Supersonic, said in an interview with GamesBeat earlier this year that more brands are sponsoring video ads that reward players with valuable gear via their favorite apps. And these ads are particularly effective. Finding such monetization alternatives to direct in-app purchases is increasingly important in the highly competitive mobile-game business, where a million rivals are competing for $30 billion in worldwide mobile-game revenues.

In an interview, Shoham said today, “We have been laser-focused on working closely with developers on video mediation and reward-based advertising. It was hard for Supersonic to develop an effective display offering in this space. Now we can bring a single SDK to publishers. Advertisers also asked us about a single solution. Our job is to build the necessary tools for developers to run their businesses.”

He said that developers don’t want to be dependent on a single platform, and that’s why IronSource-Supersonic will be an important alternative.

The video ads — which are provided by a number of big mobile ad networks on Supersonic’s platform — are a good way to keep people engaged and a great way for developers to drive revenue. They work because the ads are targeted at the interests of the gamer or app user. The video ads also spur more conversation between paying and non-paying users.

Supersonic has tripled its revenues every year and has grown to more than 250 employees.

Supersonic’s rewarded video platform is being used by publishers such as Electronic Arts, Kongregate, Gree, Pocket Gems, Pretty Simple, Social Point, and DeNA. Shoham said that the companies will work on new product roadmap in the coming months.

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Via:: VentureBeat