Telefonica & Blackstone Launch Axonix: A New Mobile Ad Exchange Built on MobClix Tech
A Strategic Move Into Mobile Advertising
Telefonica, the Spanish telecom giant with operations in 24 countries and 323 million customers, is expanding its footprint in the digital advertising space. Partnering with private equity firm Blackstone, Telefonica has launched Axonix, a real-time bidding (RTB) mobile ad exchange built on the technology of MobClix, a defunct ad platform acquired by Blackstone earlier this year.
Headquartered in London, Axonix is set to debut its self-service mobile ad platform in May, initially targeting the U.S., Latin American, and European markets.
The Rise and Fall of MobClix
MobClix was once a fast-growing mobile ad exchange acquired by Velti in 2010 for over $50 million. However, financial troubles plagued Velti, leading to unpaid developer fees and massive losses. By 2013, MobClix filed for Chapter 7 bankruptcy, while Velti entered Chapter 11 protection.
In January 2014, GSO Capital Partners (Blackstone’s credit division) acquired MobClix’s assets, along with other Velti holdings, for an undisclosed sum. Part of Velti’s assets were later repurposed into mGage, a separate mobile marketing venture.
Axonix: A Fresh Start for MobClix’s Tech
Under new leadership, Axonix aims to revitalize MobClix’s technology. Simon Birkenhead, formerly of Google and now Telefonica’s Director of Global Advertising Sales, has been appointed CEO. Simon Bailey, a former MobClix executive, will serve as COO.
Key Highlights:
- Funding & Stability: Axonix is backed by Telefonica and Blackstone, with sufficient capital for at least two years.
- No VC Dependence: The company does not plan to seek external venture funding.
- Strategic Hiring: Competitive hiring packages aim to attract top talent from rival firms.
- Debt-Free: Axonix inherits MobClix’s demand-side integrations but none of its financial liabilities.
Why Telefonica Is Betting on Mobile Ads
Telefonica has long sought to monetize its vast mobile network through digital initiatives. In 2011, it consolidated these efforts under Telefonica Digital, which included ventures like Tuenti, BlueVia, and Jajah. However, earlier this year, Telefonica dissolved the division, reabsorbing key projects into its core operations.
The Mobile Ad Market Opportunity
- Global Growth: Mobile ad spend reached $13.4 billion in 2013 (13% of internet ad spend) and is projected to hit $45 billion by 2016 (28% share).
- UK Expansion: Mobile ad spend in the UK is expected to surge to $3.53 billion in 2014, up from $1.86 billion in 2013.
Axonix will compete with established players like Twitter’s MoPub and SingTel’s Amobee, leveraging Telefonica’s vast user base and partnerships.
Potential Clients & Partnerships
- Telefonica Itself: The company currently uses DoubleClick and Amobee but may transition some services to Axonix.
- Sprint & Firefox OS: Existing partnerships with Sprint and Mozilla could open doors for Axonix adoption.
- Other Operators: Axonix aims to engage with telecom providers beyond SingTel.
The Road Ahead
Axonix represents Telefonica’s latest attempt to carve out a niche in the booming mobile ad market. With strong financial backing and proven technology, the exchange could become a key player—if it can convince advertisers of its stability and innovation.
Photo Credit: Flickr
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