Ad tech company Rubicon Project has acquired nToggle, a technology company that makes it easier and more cost effective for programmatic buyers to find the inventory they’re looking for among the billions of bid requests they receive each day.

Rubicon Project paid US$38.5 million for nToggle, which will be made available on the Rubicon Project platform in the coming months, giving buyers the option to utilise the bid request optimisation technology.

Rubicon Project explained the rationale behind its acquisition: Since the introduction of header bidding, the number of bid requests received by demand side platforms (DSPs) has increased by as much as 5X. Although access to inventory has increased, the infrastructure costs associated with that growth have put a huge burden on DSPs, resulting in many of them never seeing large swaths of that available inventory.

The nToggle technology makes it easier for DSPs to more effectively identify and target their key audiences, while also significantly reducing their infrastructure costs by compressing inbound queries per second (QPS) by as much as 80 per cent, the company said.

“Integrating nToggle’s technology into Rubicon Project’s platform enables buyers to find the ‘signal in the noise’ so they can bid more confidently, win more auctions, and spend more with our publisher and app clients,” said Michael Barrett, President and CEO of Rubicon Project.

“This acquisition underscores our commitment to strengthen the Rubicon Project exchange with tools and services that make it easy for buyers and sellers to transact. The needs of our buyers changed with the introduction of header bidding, and nToggle’s technology enables us to address those evolving needs.”

nToggle’s proprietary algorithm-driven software utilises breakthrough analytical and data science techniques to help supply and demand partners manage the ever-expanding bid stream across all digital media by traffic shaping real-time bidding requests, optimising traffic, and reducing the number of duplicates and irrelevant bid requests DSPs must process.

“Traffic shaping–or ‘toggling’ as we like to call it–is a real force in programmatic advertising, and a mission-critical ingredient for its important players,” said Adam Soroca, Founder and CEO at nToggle. “We’ve spent the last three years building our advanced data solutions, innovative technology platform and talented team, and are excited for the opportunity to accelerate our business by taking this next step with our longtime partner Rubicon Project.”

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