Tremor International Business Model Canvas

Tremor International's (through its Nexxen subsidiary) strategic alliances with Connected TV (CTV) Original Equipment Manufacturers (OEMs) are foundational to its business model. These partnerships grant exclusive access to Automatic Content Recognition (ACR) data, providing unparalleled insights into viewer behavior. For instance, collaborations with VIDAA, powering Hisense and Toshiba smart TVs, are crucial for this data acquisition.

These OEM relationships are not just about data; they also unlock direct access to premium CTV inventory. This means Nexxen can offer advertisers more efficient and effective reach within the burgeoning CTV market, a sector experiencing significant growth. By having established relationships with all major CTV OEMs, Tremor solidifies its position as a key player in CTV advertising.

Nexxen's key partnerships are central to its data-driven advertising model, particularly with Connected TV (CTV) Original Equipment Manufacturers (OEMs). These collaborations, like the one with VIDAA for Hisense and Toshiba smart TVs, are critical for accessing Automatic Content Recognition (ACR) data, providing deep viewer insights. This data access is a significant competitive differentiator, enabling more precise audience targeting and campaign optimization within the rapidly expanding CTV market.

Tremor International’s core activities revolve around managing and leveraging extensive data sets. This includes onboarding, enhancing, and analyzing both first-party data and exclusive ACR (Automatic Content Recognition) data. This meticulous data handling is fundamental to their operations.

The company actively develops data-driven insights and proprietary tools, such as Nexxen Discovery and TV Intelligence. These tools are designed to directly improve campaign performance for their clients and deliver unique, actionable intelligence, showcasing the practical application of their data management capabilities.

Tremor International's key activities center on the development and operation of its integrated programmatic advertising platform, Nexxen. This includes managing its DSP, SSP, Ad Server, and Data Platform, all while focusing on AI and machine learning for enhanced targeting and campaign optimization.

In 2024, Tremor is heavily investing in sales and marketing to boost commercial growth and market penetration, emphasizing its unified video and CTV advertising capabilities. For 2025, a significant push towards generative AI in product innovation is a priority to expand the Nexxen suite's value.

The company also focuses on data management, including acquiring and refining first-party and ACR data to create insights and proprietary tools like Nexxen Discovery and TV Intelligence, directly improving client campaign performance.

Tremor's operational core involves the precise execution and continuous improvement of video ad campaigns, utilizing real-time bidding and advanced ad serving to maximize reach for advertisers and monetization for publishers. For instance, in 2024, enhancements to programmatic video capabilities offered advertisers greater control over targeting and performance metrics.

Historically, strategic acquisitions like Amobee, Unruly, and Spearad have been crucial for Tremor's growth and technological expansion, integrating diverse capabilities into a unified offering to bolster market position.

Tremor International's business model hinges on its exceptionally skilled workforce. A core asset is its team of engineers, data scientists, sales professionals, and ad tech specialists. Their deep knowledge in areas like video, Connected TV (CTV), programmatic advertising, and data analytics is what fuels the company's innovation and platform development.

This expertise directly translates into client success and the continuous enhancement of Tremor's technology and talent synergy. For instance, as of early 2024, the company continued to invest in its engineering talent, a critical factor in maintaining its competitive edge in the rapidly evolving ad tech landscape.

Nexxen's proprietary technology platforms, including its DSP, SSP, Ad Server, and DMP, are the core of its operations, facilitating billions of daily ad transactions. These integrated components create a seamless, end-to-end advertising ecosystem, continuously enhanced with AI and machine learning for improved campaign performance and data utilization. The company's exclusive data assets, particularly ACR data from CTV operating systems like VIDAA, offer unparalleled insights for precise audience targeting, a critical advantage given the projected over 80% CTV household penetration in the US by the end of 2024.

Nexxen's skilled workforce, comprising engineers, data scientists, and ad tech specialists, drives innovation and platform development, with a continued focus on investing in engineering talent in early 2024. The company's extensive network of advertiser and publisher relationships, which saw significant growth in partnerships by the end of 2023, ensures a dynamic marketplace and a healthy balance of demand and supply. Financial capital fuels ongoing platform enhancement and strategic expansion, with Nexxen highlighting a robust net cash position in its Q3 2024 results, underscoring its commitment to innovation and financial flexibility.

Nexxen's proprietary data assets, including exclusive access to Automatic Content Recognition (ACR) data and the robust Nexxen Data Platform, are central to its value proposition. These capabilities allow for highly precise audience targeting and comprehensive campaign measurement, directly addressing a core need for advertisers seeking to optimize their spend and understand return on investment.

Customers benefit from the ability to integrate and enrich their own first-party data, leading to more effective campaign planning and execution. This data-centric approach provides actionable insights into campaign performance, such as measuring tune-in lift and conducting cross-platform measurement, which are critical for understanding the full impact of advertising efforts in today's fragmented media landscape.

The emphasis on data as a key differentiator is evident in Nexxen's ability to offer superior targeting and measurement compared to competitors. For instance, in 2024, the demand for granular audience insights and verifiable campaign outcomes continued to grow, with advertisers increasingly prioritizing platforms that can demonstrate tangible results and provide a clear view of their audience's engagement across various touchpoints.

Nexxen's value proposition centers on providing advertisers with a unified, end-to-end programmatic platform that simplifies the ad tech ecosystem. This integrated approach, combining DSP, SSP, ad server, and DMP functionalities, allows for efficient campaign management and data utilization across the entire advertising lifecycle.

Key to this offering are Nexxen's proprietary data assets, including exclusive ACR data and the Nexxen Data Platform, which enable highly precise audience targeting and comprehensive campaign measurement. This data-centricity allows advertisers to optimize spend and understand ROI effectively, with a growing demand for such granular insights in 2024.

Furthermore, Nexxen unlocks access to premium video and CTV inventory, particularly through direct partnerships with leading CTV OEMs. This provides advertisers with unique reach to engaged audiences within high-quality content environments, benefiting publishers through optimized inventory and increased yield.

Tremor International, now Nexxen, reported strong performance in early 2024, with a 10% year-over-year increase in video revenue in Q1 2024, underscoring the effectiveness of their integrated video advertising solutions and their value in delivering impactful campaigns.

Nexxen's sales team adopts a consultative approach, partnering with advertisers and publishers to deeply understand their specific challenges and goals. This collaborative method allows Nexxen to craft bespoke solutions, showcasing how its unified platform effectively addresses distinct industry needs.

This focus on tailored solutions and demonstrating clear value is a significant growth driver for the company. In 2024, Tremor International reported that its enhanced sales execution contributed to a substantial increase in client retention, with a notable uplift in the average contract value for new partnerships.

Nexxen fosters strong customer relationships through dedicated account management and a consultative sales approach, ensuring tailored solutions. The company also empowers clients with self-service platform options and comprehensive training, driving platform adoption and retention.

This focus on client success is reflected in Tremor International's performance. For instance, in Q1 2024, Tremor International reported a 14% revenue increase to $101.7 million, underscoring the effectiveness of its customer-centric strategies.

Nexxen's business model leverages its connections to a vast ecosystem of ad networks and exchanges. This broad connectivity is crucial for accessing diverse ad inventory and demand sources, enabling them to serve a wider range of advertisers and publishers.

By integrating with numerous platforms, Nexxen can efficiently extend audience reach for its clients' campaigns. This wide net allows for greater flexibility and optimization in how and where ads are delivered, ultimately boosting monetization opportunities.

In 2023, Tremor International, Nexxen's parent company, reported that its video advertising revenue grew by 35%, underscoring the effectiveness of its extensive network reach in driving performance and monetization.

Nexxen's channels extend beyond its direct sales force and proprietary platforms to encompass a broad network of ad networks and exchanges. This extensive connectivity is vital for accessing diverse ad inventory and demand, enabling Nexxen to serve a wider client base and maximize monetization opportunities.

The company also strategically utilizes integrations and APIs to build a comprehensive ad tech ecosystem, connecting with data providers, measurement firms, and other partners. This interconnectivity ensures efficient data flow, enhances platform functionality, and supports advanced analytics and targeting capabilities.

Furthermore, Nexxen actively participates in industry events and thought leadership initiatives to build brand awareness and generate leads. These activities showcase their expertise in video and CTV advertising, attracting new partners and clients by demonstrating their technological advancements and market insights.

Digital publishers and broadcasters, including websites, apps, and streaming services, are key customers for Tremor International. These entities possess valuable video and Connected TV (CTV) advertising space that they aim to monetize effectively.

They leverage Tremor's (formerly Nexxen's) advanced Supply-Side Platform (SSP) and ad serving technology to optimize their ad revenue streams and manage their inventory with greater efficiency. This strategic partnership allows them to reach a wider audience and achieve better monetization outcomes for their content.

The growth in this segment is evident, with Tremor adding 64 new supply partners in the first quarter of 2024 alone, underscoring the increasing demand for their monetization solutions within the digital publishing and broadcasting landscape.

Tremor International's customer base is diverse, including large brand advertisers seeking broad reach and measurable results, and advertising agencies managing campaigns for multiple clients. In 2024, both segments are vital, with agencies representing a significant revenue driver for the company's Nexxen platform.

Tremor International, through its Nexxen platform, incurs significant expenses for data acquisition and licensing. These costs are crucial for obtaining valuable datasets, including Automatic Content Recognition (ACR) data, which are essential for enhancing targeting and measurement capabilities within the digital advertising ecosystem.

These data partnerships are fundamental to Nexxen's ability to offer unique data assets, thereby improving the precision of its advertising solutions. While data licensing is also a burgeoning revenue stream for Tremor, the associated costs of securing and maintaining these licenses represent a notable expenditure in its overall cost structure.

Tremor International's cost structure is heavily influenced by its significant investments in technology and data. These are essential for maintaining its competitive edge in the programmatic advertising space. The company prioritizes R&D, particularly in AI and machine learning, to enhance its Nexxen platform's capabilities. Acquiring and licensing valuable data, including ACR data, is also a major expenditure, crucial for improving targeting and measurement for advertisers.

Sales and marketing are key cost drivers, supporting customer acquisition and retention. Furthermore, the operational backbone of Tremor's global platform relies on substantial spending for IT infrastructure and cloud computing services. General and administrative expenses cover essential overheads like salaries and professional services, with a focus in 2024 on improving efficiency to boost adjusted EBITDA.

Tremor International, through its Nexxen platform, generates revenue from managed services, offering advertisers and agencies comprehensive campaign management and optimization. This hands-on approach leverages Nexxen's expert teams to drive campaign success.

While some clients temporarily opted for less expensive alternatives, Tremor anticipates a resurgence in video revenue. This growth is expected to be fueled by strategic cross-selling initiatives, capitalizing on the value proposition of their managed services.

Tremor International's revenue streams are diversified, with programmatic advertising forming the bedrock, projected to constitute around 90% of its 2024 revenue. Nexxen, its subsidiary, also generates substantial income through data licensing, particularly its valuable ACR data, and by providing managed services for campaign optimization.

Further revenue is derived from ad server fees, with Nexxen CTRL, an integrated SSP and Ad Server platform, showing strong performance in Private Marketplace deals. Creative services through Nexxen Studio, focusing on interactive and unique ad experiences like voice-to-action campaigns, also contribute significantly, especially with enterprise clients.