NEW YORK - Stagwell (NASDAQ: STGW), a marketing network, and Nexxen (AIM/NASDAQ: NEXN), an ad-tech company, have entered into a partnership to integrate Nexxen's data solutions into the Stagwell Marketing Cloud.
This collaboration aims to enhance advertisers' consumer engagement and campaign effectiveness. The partnership coincides with Nexxen's launch of its Nexxen Data Platform, an extension of its data management platform.
The Nexxen Data Platform will allow brands to combine their data with Nexxen's unique assets and tools to improve audience targeting. It includes automatic content recognition (ACR) data to optimize spend across TV formats.
Nexxen's unified identity graph will help advertisers navigate privacy changes, such as cookie deprecation, by merging multiple identifiers for better targeting and measurement.
Mark Penn, CEO of Stagwell, highlighted the benefits for clients, emphasizing the ability to maximize campaigns with a unified view of audiences in a privacy-compliant way. Ofer Druker, CEO of Nexxen, noted that the technology will enable advertisers to shift from buying media to buying against audiences, leading to improved outcomes.
Stagwell's assets within the media ecosystem are expected to grow through this partnership, providing clients with advanced data solutions and incremental innovation.
Nexxen's platform and proprietary identity graph are central to the company's strategic roadmap, aiming to deliver comprehensive data solutions to global brands.
The partnership is positioned to provide top-tier brands with tools for strategic consumer research, communications, and media activation, leveraging AI and augmented reality technologies.
Information based on a press release statement indicates that this partnership is designed to offer marketers enhanced capabilities in audience discovery and engagement, although the actual performance and market reception of these solutions will unfold over time.
InvestingPro Insights
As Stagwell (NASDAQ: STGW) forges a strategic partnership with Nexxen to enhance its marketing cloud capabilities, investors and industry observers are closely monitoring the company's financial health and market performance. According to InvestingPro data, Stagwell currently holds a market capitalization of $1.84 billion. Despite a challenging environment, the company has managed to report a gross profit of $922.99 million over the last twelve months as of Q1 2024, with a gross profit margin of 35.85%. This suggests that Stagwell is maintaining a strong ability to generate earnings relative to its revenue.
InvestingPro Tips indicate that Stagwell's management has been actively engaging in share buybacks, which could signal confidence in the company's future prospects. Additionally, analysts are optimistic, predicting that the company will be profitable this year. This forecast aligns with Stagwell's strategic moves, such as the recent partnership with Nexxen, which could potentially drive future growth and profitability.
The company's stock has experienced a notable 26.43% price increase over the past month, reflecting positive investor sentiment. This strong return over the short term may interest potential investors looking for growth opportunities. For those considering a deeper dive into Stagwell's performance and future outlook, InvestingPro offers additional insights and metrics. With a total of 11 InvestingPro Tips available for STGW, investors can gain a comprehensive understanding of the company's financials and market position. To access these insights, consider using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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