Like Google product listing ads, but for e-commerce sites.
HookLogic, a startup that helps consumer brands place ads on e-commerce sites, has agreed to sell for $250 million to publicly-traded ad-tech firm Criteo.
HookLogic works with retailers like Walmart, Target, Costco and Best Buy to sell sponsored ad placements on their web pages when shoppers search for a product on their sites. Consumer brands bid to place these cost-per-click ads across HookLogic’s network of e-commerce sites.
Whereas retailers buy Google Product Listing Ads to drive traffic to their sites, brands buy HookLogic ads to drive traffic to their specific products within an e-commerce site. HookLogic shares the ad revenue it collects with the e-commerce sites it partners with.
In an investor slide presentation, Criteo said it believes the deal will help it acquire new consumer-brand advertising customers that currently do business with HookLogic. Criteo also expects to help HookLogic expand the number of retailer websites on which it can place ads.
HookLogic expects to record gross revenue of $130 million in 2016, according to the investor presentation, more than double last year’s total. HookLogic CEO Jonathan Opdyke and his exec team will join Criteo in the deal.
The privately-held company had raised around $40 million in venture funding from firms like Bain Capital Ventures, Fung Capital USA, Intel Capital and Mousse Partners. The deal is expected to be finalized in the fourth quarter of this year.