Nexxen and TCL FFALCON Expand Partnership, Bringing Native Display Inventory to Advertisers
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Insights
Examining the strategic partnership between Nexxen and TCL FFALCON, it's clear that this alliance is poised to significantly impact the advertising technology sector, particularly in the realm of Connected TV (CTV) and Over-The-Top (OTT) services. The exclusive agreement for Nexxen to sell TCL's native display inventory represents a consolidation of market power, potentially increasing Nexxen's leverage over competitors.
From a market dynamics perspective, this partnership could shift the balance of power within the CTV advertising space. By securing a preferred supply platform status, Nexxen is likely to attract a larger share of advertising dollars, especially from brands seeking to capitalize on the growing trend of streaming media consumption. This could lead to increased revenue for Nexxen and potentially higher advertising costs as demand for premium inventory grows.
Moreover, the focus on 'native display inventory' suggests a strategic move towards more integrated and less intrusive advertising formats, which could enhance viewer engagement and, consequently, ad effectiveness. As advertisers seek to maximize the impact of their campaigns, the ability to access TCL's diverse user base through Nexxen's platform could become a significant competitive advantage.
The announcement of an expanded partnership between Nexxen and TCL FFALCON is of particular interest to investors due to the implications for revenue growth and market share expansion. By becoming TCL's preferred supply platform partner, Nexxen is likely to see an uptick in its transaction volume, which directly correlates with its revenue model that typically includes taking a percentage of the advertising spend.
Investors should note the potential for increased profitability due to the economies of scale and the exclusivity of the deal. Nexxen's ability to exclusively sell TCL's native display inventory could lead to a more predictable and stable revenue stream. This could, in turn, lead to a more favorable assessment of Nexxen's financial health and future prospects.
However, it's crucial to monitor how this partnership affects Nexxen's cost structure. The costs associated with integrating and maintaining the exclusive access to TCL's inventory, as well as any investments in technology upgrades to support this initiative, could offset some of the revenue gains in the short term.
The partnership between Nexxen and TCL FFALCON underscores a strategic move within the advertising technology industry towards more collaborative and integrated approaches. Nexxen's designation as the preferred supply platform partner for TCL highlights the importance of supply-side platforms (SSPs) in the digital advertising ecosystem, particularly for video and CTV.
CTV and OTT platforms are increasingly becoming a focal point for advertisers due to their high engagement rates and the ability to target specific demographics. Nexxen's exclusive rights to sell TCL's native display inventory could enhance its SSP offering by providing advertisers with a more diverse and premium selection of ad inventory.
This development also reflects the ongoing trend of media convergence, where traditional television and digital streaming platforms are blending. The emphasis on providing a unified advertising experience across different screens is indicative of the industry's response to changing consumer viewing habits. By leveraging Nexxen's expertise in video and CTV, TCL FFALCON aims to offer advertisers not just reach, but also relevance and engagement, which are key metrics in today's fragmented media landscape.
Months after announcing expanded access to TCL FFALCON’s premium TV inventory, the companies solidify plans to help brands reach audiences across screens
NEW YORK, Feb. 08, 2024 (GLOBE NEWSWIRE) -- Nexxen, a global, unified advertising technology platform with deep expertise in video and Connected TV (“CTV”), today announced the expansion of its strategic partnership with TCL FFALCON (“TCL”), a global leading Internet and AI×IoT service platform. This expansion not only designates Nexxen’s supply-side platform (“Nexxen SSP”) as TCL’s preferred supply platform partner, but also grants Nexxen SSP the opportunity to exclusively sell TCL’s native display inventory, solidifying both companies’ commitment to providing advertisers with opportunities to reach highly engaged audiences across screens globally.
Last spring, Nexxen SSP (then known as Unruly) and TCL announced their initial partnership to expand premium TV inventory access globally. The partnership granted advertisers direct access to impactful streaming supply in the TCL Channel, which includes popular entertainment, movies on-demand and live channels. Now, Nexxen will serve as the exclusive conduit for advertisers looking to tap into TCL's premium native display inventory as well as its CTV and OTT inventory, delivering unprecedented access to TCL's extensive and diverse user base to today’s brands and advertisers.
“We are thrilled to deepen our partnership with TCL FFALCON,” said Kenneth Suh, Chief Strategy Officer at Nexxen. “This enhanced relationship not only positions Nexxen SSP as TCL's preferred supply partner, but also opens up exciting avenues for advertisers seeking to harness the potential of TCL's native display inventory. Together, we are dedicated to driving unique value and engagement for them globally.”
“We are excited to further strengthen our strategic partnership with Nexxen,” said Rebecca Wan, Business Department Leader at TCL FFALCON. “This expanded collaboration solidifies our commitment to providing advertisers with exceptional opportunities to reach highly engaged audiences globally. By entrusting Nexxen and leveraging their expertise in video and CTV, FFALCON aims to deliver exceptional value and engagement for brands and advertisers in the evolving over-the-top (“OTT”) landscape.”
About Nexxen
Nexxen empowers advertisers, agencies, publishers and broadcasters around the world to utilize video and Connected TV in the ways that are most meaningful to them. Comprised of a demand-side platform (DSP), supply-side platform (SSP), ad server and data management platform (DMP), Nexxen delivers a flexible and unified technology stack with advanced and exclusive data at its core. Our robust capabilities span discovery, planning, activation, measurement and optimization – available individually or in combination – all designed to enable our partners to reach their goals, no matter how far-reaching or hyper niche they may be. For more information, visit www.nexxen.com.
Nexxen is headquartered in Israel and maintains offices throughout the United States, Canada, Europe and Asia-Pacific, and is traded on the London Stock Exchange (AIM: NEXN) and NASDAQ (NEXN).
About TCL FFALCON
TCL FFALCON is a global leading Internet and AI×IoT service platform incubated by TCL Electronics. It is responsible for the system operation of TCL smart screens and general smart screens, while expanding its TV, OTT, and other businesses, providing home membership services such as films, education, and lifestyle to users in over 160 countries worldwide. FFALCON has been selected for the Hurun Research Institute's "2022 Hurun Global Gazelle Companies" and Forbes' "2020 China High-Growth Gazelle Companies" lists. For additional product information, please visit www.tcl.com for the full portfolio.
Forward-Looking Statements
This press release contains forward-looking statements, including forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Forward-looking statements are identified by words such as "anticipates," "believes," "expects," "intends," "may," "can," "will," "estimates," and other similar expressions. However, these words are not the only way Nexxen identifies forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our employees, talent base, tech stack, products, any other offerings of Nexxen and any other subsidiaries or affiliates and any benefits thereof. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties. Nexxen cautions you not to place undue reliance on these forward-looking statements. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the company’s most recent Annual Report on Form 20-F, which was filed with the U.S. Securities and Exchange Commission (www.sec.gov) on March 7, 2023. Any forward-looking statements made by us in this press release speak only as of the date of this press release, and we do not intend to update these forward-looking statements after the date of this press release, except as required by law.
For more information, please contact:
Caroline Smith
Vice president, Communications, Nexxen
csmith@nexxen.com
FAQ
What is the expanded partnership between Nexxen and TCL FFALCON about?
What does the expanded partnership designate Nexxen's supply-side platform (Nexxen SSP) as?
What opportunities does the expanded partnership grant Nexxen SSP?
What does Nexxen aim to deliver through the expanded partnership?
What does TCL FFALCON aim to deliver through the expanded partnership?
