Innovid Shares Rise in Market Debut

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Ad tech firm went public on Wednesday via SPAC merger

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Innovid shares were up about 7% after opening at $8.30 in afternoon trading.

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New York-based company Toyota Motor. Helps create, present and measure video ads for brands such as Corporation

, GlaxoSmithKline PLC and Anheuser Busch InBev SA.

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The demand for video content has exploded recently, especially as consumers have stayed home during the pandemic. Innovid co-founder and CEO Zwicka Neter said the company saw a 65% increase in connected TV revenue in the first three quarters of 2021 over the year-ago period.

Connected TV refers to content streamed using the Internet on Smart TVs or other devices.

While streaming video services are keeping it out of the eye of the consumer, Mr. Netter said Innovid can generate revenue as long as advertisers are spending in space.

“It doesn’t matter where the audience is coming from and how they’re watching as long as it’s through the Internet,” he said.

Innovid competes with Google’s Campaign Manager 360, which helps advertisers and agencies manage digital campaigns, Mr. Neter said.

“Google has a competitive advantage in terms of the amount of data they hold,” said Sagar Thankey, portfolio manager at Guinness Atkinson Asset Management, an investment management firm.

He added that Google has another advantage in the number of users. “In the case of Innovid… they advertise themselves as being more focused and able to execute better on the connected TV business. While the Google stack is more comprehensive, those who want to focus and connect TV But those looking for better performance will be the type of customers Innovid can appeal to the most.”

Despite the already rapid growth, the connected television sector will continue to grow, said Tim Nolan, a senior media technical analyst at Macquarie Group. According to data from research firm eMarketer, US advertisers will spend $14.44 billion on connected TVs in 2021, up 60% compared to 2020.

“CTV advertising, while this gangbuster is on the rise, is still a small part of total TV advertising spend, and it will remain a small part for some time,” Mr. Nolen said. This means there is enough space for multiple players to provide various services in the space, he said.

Innovid also sees a future in the measurement side of the Internet-enabled television business. In September, the Media Ratings Council, the media industry’s measurement watchdog, said it had voted to suspend the recognition of Nielsen Holdings plc’s National Television Service.

Players like Innovid will want to capture some of that business.

“The future of TV measurement holds a very serious opportunity in CTV measurement,” said Innovid’s Mr. Netter.

Megan Graham at [email protected]

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