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AcuityAds scores with new partnership, Echelon Wealth says

AcuityAds Echelon
AcuityAds Echelon
AcuityAds CEO Tal Hayek.

Echelon Wealth Partners’ Rob Goff says that digital advertising company AcuityAds (AcuityAds Stock Quote, Chart, News: TSXV:AT) has scored big with its new agreement with SoCast, a client management software provider for radio broadcasting. The analyst’s May 17 research update maintains his “Speculative Buy” rating for AcuityAds with a $1.20 target price, representing a projected return of 82 per cent at the time of publication.

Announced this morning, the deal will have AcuityAds licensing its programmatic advertising platform for SoCast’s US-based radio clients.

“We are pleased that SoCast has chosen Acuity’s programmatic advertising platform as their digital advertising solution for their radio clients,” stated Tal Hayek, CEO of AcuityAds, in a press release. “Research indicates that radio companies are optimistic about programmatic advertising and its growing role and this partnership enables them to more easily extend their engagement with audiences and advertisers across all digital channels.”

Goff says that the SoCast agreement is a win for AcuityAds. “The partnership represents solid validation of AcuityAds as a technology company and is consistent with its one to many go to market strategy,” he says. “SoCast effectively supplies a CMS (client management software) product suite of digital products that enables radio broadcasters to interact with their audience online and to collect listener analytics that can guide programming decisions, provide feedback to advertisers, and now with AT integrate with programmatic sales programs. The product will be white labeled with SoCast, but include the ‘powered by AcuityAds’ sub-branding.”

“Radio broadcasters are particularly well suited [to AcuityAds], as the broadcasters are wholly motivated to ramp up on digital programs and their end advertisers/clients are weighted towards local and regional advertisers, where they often would not have the internal resources/knowledge to adopt programmatic buying,” he says.

Goff sees AcuityAds generating revenue of $52.9 million in 2018 with Adjusted EBITDA of $0.6 million.

Disclosure: Cantech’s Nick Waddell owns shares of AcuityAds

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About The Author /

Jayson MacLean
Jayson is a writer, researcher and educator with a PhD in political philosophy from the University of Ottawa. His interests range from bioethics and innovations in the health sciences to governance, social justice and the history of ideas.

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