AppLovin and Flip Announce Flip To Launch Ad Marketplace for Merchants Using AppLovin’s AXON Technology
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The investment of $50 million by AppLovin into Flip's Series C funding round is a strategic move that could have significant implications for both companies. AppLovin's AXON technology is positioned to enhance Flip's marketing capabilities, potentially increasing user engagement and sales for brands on the Flip platform. The integration of AXON Connect into Flip's system means that Flip's brands can now access a vast network of 1.4 billion DAUs, which could lead to a substantial increase in market penetration and revenue.
From a market research perspective, the partnership between a marketing platform and a social commerce platform is indicative of the growing trend towards personalized and performance-based advertising. The use of AI in advertising, like AppLovin's AXON, is becoming increasingly important for companies looking to optimize their marketing spend and improve ROI. This collaboration could set a precedent for future partnerships between tech and commerce platforms, potentially reshaping the landscape of digital advertising.
The announcement of AppLovin's investment in Flip, which contributed to a $144 million Series C funding round, is noteworthy for investors as it elevates Flip's pre-money valuation to $1.05 billion. This valuation reflects investor confidence in Flip's business model and growth potential, especially in the burgeoning field of social commerce. The funding is expected to fuel Flip's expansion and enhance its technological capabilities, which could lead to improved financial performance.
Investors should monitor the utilization of these funds, particularly how effectively Flip leverages AppLovin's AXON technology to drive sales and user acquisition. Given the current interest in e-commerce and the high valuations of tech startups, this partnership could potentially lead to an increase in AppLovin's stock value if the market perceives the investment as a strategic enhancement to its core business offerings.
The strategic partnership between AppLovin and Flip highlights a broader economic shift towards synergistic technology collaborations that can drive efficiency and growth in the digital economy. The potential for increased sales and user engagement through AI-powered advertising suggests a positive outlook for both consumer spending and technological innovation within the sector. Moreover, such partnerships can foster a more dynamic economic environment by encouraging competition and the development of new marketing technologies.
However, it is important to consider the context of current economic conditions, including consumer spending trends and the overall health of the technology sector. The success of this partnership will depend on both the broader economic climate and the companies' ability to execute their strategies effectively. If successful, this could stimulate further economic activity and innovation within the digital advertising space.
AppLovin invests
AppLovin’s AXON technology was launched in early 2023, and helped its advertisers achieve substantially more scale at higher performance across AppLovin’s network. With this partnership, AppLovin is making its AXON technology available to others. Flip brands will leverage the AI advertising engine via AXON Connect, and will be able to reach more customers in measurable ways, with higher returns on the Flip platform. In addition, the partnership will enable Flip to extend its audience network to AppLovin’s 1.4 billion daily active users (DAUs) on behalf of all the brands on Flip.
“We have seen the significant impact AXON makes on campaign performance as brands see stronger return on investment. With AXON powering Flip’s ads, the Flip consumer will find more products to purchase. Likewise, brands on Flip will be positioned to drive significantly more sales,” said Adam Foroughi, Co-founder and CEO of AppLovin. “Noor, an incredibly talented founder, has led Flip through the hard part of finding a product market fit. Now that market fit has been clearly established, we believe this partnership will catalyze an exciting phase of growth for Flip and their brands.”
Flip’s funding round was led by Streamlined Ventures with participation from previous investors Mubadala Capital and WestCap, and AppLovin as a new investor, bringing the company’s pre-money valuation to
“With the recent launch of our MagicOS ads manager, and now the upcoming launch of our advertising powered by AXON, we are confident we can help tens of thousands of brands find the right customer profitably,” said Noor Agha, CEO of Flip. “We are thrilled to have continued support from our investors and to add AppLovin to the mix.”
For more information on AppLovin, visit www.applovin.com.
For more information on Flip, visit www.flip.shop.
About AppLovin
AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end software and AI solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: www.applovin.com.
About Flip
Flip is building the next-generation shopping social network for people to shop through other people. With a growing community of shoppers sharing video reviews of products they've purchased on the platform, buyers can discover products through 60 second videos of user-generated content that is instantly shoppable with a one-click checkout and same day shipping. Every shopper can then become a creator by sharing their own reviews and monetizing their content. To learn more, visit www.flip.shop or download the Flip app on iOS or Android.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release include, but are not limited to, statements regarding the Flip’s future use of AppLovin technology and expected performance of such technology for Flip, AppLovin customers’ ability to achieve greater sales and better returns on such sales and the success of the AppLovin-Flip partnership generally. These forward-looking statements are subject to risks and uncertainties, including risks and uncertainties associated with a transaction between two third parties to the Company, as well as the risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.
Source: AppLovin Corp.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240402160250/en/
Press
Kim Hughes
press@applovin.com
Source: AppLovin Corp.
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