Magazine Luiza has announced the acquisition of two junior companies that have brought a retail giant to one place to explore a billionaire-featured market: online advertising.
The magazine Luiza said it is buying Canaltech, a technical site focused on tool reviews, the Inloco Media Technology team, and the Inloco Emerging Arm to determine geographic location. All initiatives are collected together on the same base system called Magalu Ads.
Acquisition amounts are not material enough to delegate disclosure. Canaltech will add 24 million unique monthly users to the 60 million currently making up the various Magalu digital properties, including Época cosméticos, Netshoes, and Zattini, the company’s recent acquisitions.
Caltech was founded in 2012 by Felipe Szatkowski and Domingos Hypolito Neto, a business pioneer who also created ultra downloads. ..
In the United States, BuzzFeed a news site known for its menus is also Amazon’s fifth-largest source of traffic. The online advertising market is still underdeveloped in Brazilian e-commerce, transporting billions of dollars between retailers in the US and China.
Amazon makes more than $13 billion annually from its vertical ads, while a large chunk of Alibaba’s revenue (about $30 billion in US dollars) comes from online ads — both are two standards for the new Magalu -Business. Mercado Livre doesn’t reveal its advertising platform figures, but market estimates show that the company already earns at least 1 billion Brazilian riyals annually from ads.
Magazine Luiza In relation to the purchase of Inloco Media, Magalu licenses the Company’s geographic location technology to enhance its offering to customers. This technology allows the Magalu customer who walks into a small retail seller’s store where Magalu is announcing ads to, for example, receive a boost on their phone to encourage them to enter the store.
The acquisition comes a week after Magalu announced the purchase of Hubsales, a platform that enables industries to directly to consumers. CEO Friedriko Trajano told Brazil Journal that Magalu is likely to have more acquisitions in the coming months and is looking forward to startups and large companies.
Magazine Luiza: The five pillars of the company’s growth are the market, the new categories, the fastest delivery and the “magical as a service” (where the acquisitions come from today), and the super proposal. “Last year we raised 5 billion Brazilian riyals to carry out integration and acquisitions. This strategy was in preparation for the epidemic, but now that we have seen off the crisis well, we will do what we promised.”
When asked if Magalu would report a separate line in the public budget with Magalu ads, Farid replied in the negative. “I’m going to try not to give a lot of vision…there are a lot of imitators and a lot of cover teams out there,” he said.