Xandr
 | |
| Formerly | AT&T Advertising and Analytics (2018) |
|---|---|
| Company type | Subsidiary |
| Industry | |
| Predecessors |
|
| Founded | September 25, 2018 |
| Headquarters | New York City, New York , U.S. |
Area served | Worldwide |
Key people | Mike Welch (EVP & GM) Ben John (CTO)[1] |
| Products | Community Xandr Invest Xandr Monetize |
| Revenue | $2,022 million (2019)[2] |
| Parent | Microsoft |
| Divisions |
|
| Subsidiaries |
|
| Website | www |
Xandr, Inc. (pronounced "Zander") is the advertising and analytics subsidiary of Microsoft, which operates an online platform, Community, for buying and selling consumer-centric digital advertising.[3]
In December 2021, AT&T announced that they had agreed to sell Xandr (including AppNexus and Clypd) to Microsoft for an undisclosed price.[4] The acquisition was completed in June 2022.
History
Following its June 2018 acquisition of AppNexus,[5] Xandr was formed by AT&T to construct a national TV advertising marketplace.
Xandr was launched, on September 25, 2018, at its inaugural AT&T Relevance Conference, in Santa Barbara, California, and was named after its parent company founder, Alexander Graham Bell.[6][7]
In June 2019, Xandr rebranded its AppNexus DSP, launching Xandr Invest, to serve as its central ad-buying hub.[8][9]
On October 18, 2019, Xandr acquired Massachusetts-based Clypd, an audience-based sales platform for television advertising.[10][11]
On April 30, 2020, it was folded into WarnerMedia.[12]
Rumors and speculation spread in 2020 that AT&T was seeking to sell and offload Xandr, along with DirecTV and Crunchyroll. The reasoning is twofold: first, AT&T took on immense debt to purchase WarnerMedia, and any non-core asset sales would help pay off that debt burden. Secondly, Xandr was inherently compromised by its association with AT&T and HBO Max, as many would-be advertisers were reluctant to use what is essentially a competitor for their ad buys, and as such it might be more lucrative on its own.[13]
On May 17, 2021, it was announced that WarnerMedia would be merged with Discovery, Inc. to form a new publicly traded company known as Warner Bros. Discovery, but that the Xandr business would not be included in the transaction and would remain a division of AT&T.[14] On December 21, 2021, AT&T announced that they had agreed to sell Xandr (including AppNexus and Clypd) to Microsoft for an undisclosed price, subject to customary closing conditions, including regulatory reviews.[4]
On June 6, 2022, Microsoft completed the acquisition of Xandr to bolster its advertising and retail media business, for about USD $1 billion.[15]
Leadership
Xandr is led by Mike Welch,[1] after the departure in March 2020 by former GroupM North America CEO Brian Lesser, who was appointed chief executive officer of AT&T advertising and analytics in 2017.[16] Kirk McDonald, who served as interim CEO following Lesser's departure,[17] moved to GroupM, a subsidiary of WPP, in August 2020.[18]
Operations
In May 2019, Xandr launched Community, its new video marketplace[19] that connects advertisers, publishers, and consumer media brands,[20] including AT&T's former WarnerMedia (now Warner Bros. Discovery) platforms: CNN, TNT, TruTV, B/R Live, and Otter Media. Other media on the Community platform includes Vice Media, Hearst Communications, Newsy, Philo, Tubi, and Xumo,[21][22] Vudu, and Bloomberg.[23]
The fee-transparent,[24] consumer-centric Xandr advertising model combines data, AT&T’s then newly acquired WarnerMedia content, AppNexus, and other proprietary advertising technology, to integrate with AT&T’s consumer network,[6][7] creating the first personalized advertising of its kind, with different commercials being delivered to different viewers simultaneously.[25]
During its first year, Xandr’s revenue was mainly derived from DirecTV sales. The company has approximately 1800 employees,[26] including 60 in Europe.[20]
References
- ^ a b "Xandr Leadership Team". xandr.com. Archived from the original on May 20, 2019. Retrieved May 18, 2021.
- ^ "2019 AT&T EARNINGS Xandr Segment" (PDF). AT&T. p. 25. Archived (PDF) from the original on September 30, 2021. Retrieved October 27, 2021.
- ^ Lafayette, Jon (February 11, 2019). "AT&T Putting All Programmatic Digital Ad Spending with Xandr". Broadcasting Cable. Archived from the original on June 14, 2020. Retrieved May 21, 2019.
- ^ a b Foley, Mary Jo (December 21, 2021). "Microsoft to buy Xandr ad marketplace from AT&T". ZDNet. Retrieved December 21, 2021.
- ^ Paoletta, Rae (November 29, 2018). "AT&T's Xandr Officially Combines Its TV Ad Biz With The AppNexus Digital Ad Platform". AdExchanger. Archived from the original on September 24, 2021. Retrieved October 27, 2021.
- ^ a b "AT&T Ad Unit Now Called ‘Xandr’ in Nod to Alexander Graham Bell" by Scott Moritz and Lucas Shaw; Bloomberg; September 25, 2018. Accessed May 21, 2019.
- ^ a b "AT&T Launches New Advertising Company, Xandr". about.att.com. Archived from the original on April 13, 2019. Retrieved May 21, 2019.
- ^ Mariel Soto Reyes (June 12, 2019). "The Relevance Conference Santa Barbara, a leadership series presented by Xandr, an AT&T unit". Business insider. Archived from the original on December 13, 2019. Retrieved December 13, 2019.
- ^ Dang, Sheila (June 10, 2019). "The AT&T's Xandr launches ad-buying platform for premium content". Reuters. Archived from the original on December 13, 2019. Retrieved December 13, 2019.
- ^ "XANDR ACQUIRES CLYPD IN MOVE TO BUILD CONNECTED TV EMPIRE Archived October 21, 2019, at the Wayback Machine Ad Age; October 18, 2019. Accessed October 21, 2019.]
- ^ Dang, Sheila (October 17, 2019). "AT&T's Xandr purchases TV advertising company clypd: source". Reuters. Archived from the original on December 12, 2019. Retrieved December 13, 2019.
- ^ "WarnerMedia and Xandr Combine To Create A Stronger Value Proposition For Agencies, Advertisers, and Publishers". Xandr. April 30, 2020. Archived from the original on May 1, 2020. Retrieved May 10, 2020.
- ^ "AT&T Ups Effort to Sell DirecTV, Xandr and Crunchyroll – Media Play News". September 2020. Archived from the original on March 2, 2021. Retrieved May 17, 2021.
- ^ Rifilato, Tony (May 17, 2021). "AT&T Will Hold On To Xandr As It Relinquishes WarnerMedia". adexchanger.com. Archived from the original on May 18, 2021. Retrieved May 18, 2021.
- ^ Czarnecki, Sean (June 6, 2022). "Microsoft just closed its acquisition of adtech firm Xandr. Here are 5 other companies it could buy to compete with Google and Meta". Business Insider. Retrieved July 1, 2022.
- ^ "GroupM North America CEO Brian Lesser to Depart for AT&T Role" Archived August 21, 2019, at the Wayback Machine by Alexandra Bruell; The Wall Street Journal; August 4, 2017. Accessed May 21, 2019.
- ^ "With CEO Brian Lesser gone, advertisers question AT&T's commitment to Xandr". digiday.com. March 16, 2020. Archived from the original on March 17, 2020. Retrieved March 16, 2020.
- ^ Steinberg, Brian (August 18, 2020). "Kirk McDonald Will Become North American CEO of GroupM". variety.com. Archived from the original on May 18, 2021. Retrieved May 18, 2021.
- ^ "Xandr To Launch 'Community' Marketplace, Enhanced Addressable TV Offerings". www.mediapost.com. Archived from the original on July 31, 2019. Retrieved May 21, 2019.
- ^ a b Joseph, Seb (July 1, 2019). "AT&T's Xandr has ambitious European expansion plans". DIGIDAY. Archived from the original on December 14, 2019. Retrieved December 13, 2019.
- ^ "AT&T's Xandr Unveils Community, Its Long-Awaited Video Marketplace". May 14, 2019. Archived from the original on October 27, 2021. Retrieved October 27, 2021.
- ^ "Xandr introduces ad marketplace, dubbed Community, during upfronts". Ad Age. May 14, 2019. Archived from the original on October 21, 2020. Retrieved May 21, 2019.
- ^ Lafayette, Jon (September 23, 2019). "One Year In, Xandr Still Pushing for Relevant Ads". Broadcasting & Cable. Archived from the original on December 13, 2019. Retrieved December 13, 2019.
- ^ Sluis, Sarah (December 11, 2018). "AppNexus Reworks Publisher Contracts To Enable Fee Transparency For Buyers". AdExchanger. Archived from the original on April 11, 2021. Retrieved October 27, 2021.
- ^ "AT&T Pushes Xandr Ad Products in Viacom Carriage Talks" by Alexandra Bruell; The Wall Street Journal; March 25, 2019. Accessed May 21, 2019. Archived May 21, 2019, at the Wayback Machine On March 11, 2020 CEO Brian Lesser resigned. On April 30, 2020 AT&T announced that Warner Media and Xandr would be merged.
- ^ Steinberg, Brian (December 10, 2019). "AT&T's Xandr Works for Closer Ties With WarnerMedia". Variety. Archived from the original on December 11, 2019. Retrieved December 13, 2019.