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Media and Games Invest SE: Media and games segments show further strong business performance, gain further market share and outperform the markets disrupted by blocking IDFA - Seite 2

How MGI benefits from Apple's changes to IDFA

Apple's IDFA and SkAdNetwork changes have been disrupting the digital media and games markets: Now it is required to ask users for their explicit opt-in permission to track them across apps and websites owned by other companies. This has recently negatively impacted especially large social networks, casual and hyper casual gaming companies as well as several AdTech players. MGI and its media segment Verve, however, are among a group of media players that are not affected in a negative way, but rather profit from these changes. Primary factor is a technical reason: Verve's vertical omnichannel ad-tech-platform in most parts simply does not have to rely on IDFA-technology as it serves the full value chain from the advertiser through the demand side and supply side platform with thousands of direct integrations to publishers giving access to first-party mobile data. This enables Verve despite the recent IDFA-changes to deliver favorable costs per mille (CPMs) for publishers while also advertisers in an IDFA-less world can still efficiently target. This has led to many new clients as well as increasing volumes from existing accounts for Verve. Moreover, the demand side of Verve is affected positively: a lot of companies in the (hyper) casual-games-market feel the impact as traditional measuring of advertising on Apple phones has become much less efficient making advertisers to shift their budgets, accordingly. Here, Verve profits from these shifts and sees new advertiser-intakes based on the disruption in the industry, due to its strong position in contextual audiences as well as technical solutions such as ATOM which work very well without IDFA. Therefore, Verve remains on its growth trajectory for the demand and supply side. While (hyper) casual mobile games have to cope with the disruption brought by IDFA, MGI's games portfolio, consisting primarily of strong PC and Console titles, that are practically not impacted by those changes and therefore shows continued strong growth.