Viant pays $20m in cash for Waymark, an AI tool that makes TV ads

Viant Technology said on November 9 that it has bought Waymark, a company whose software turns a brand’s inputs into a finished video ad. AdExchanger reported that Viant paid $20 million in cash. Viant did not give a price in its earnings release filed with the SEC, the US market regulator.

Waymark writes the script, picks the visuals and adds a voiceover

According to Viant, Waymark’s AI produces a complete video ad with its own script, visuals and voiceover. Local TV sellers such as Spectrum Reach, Comcast, NBCU and Fox already use it to make spots for local businesses, AdExchanger reported.

Viant plans to link the tool to its own data on households, shows and viewer attention. The goal is many versions of one ad, each made for a different audience or programme. CEO Tim Vanderhook said the deal will “usher in the era of generative ad creative optimization for CTV”. CTV means TV sets connected to the internet.

His brother Chris Vanderhook, the chief operating officer, told analysts that production costs keep small and midsize firms out of TV advertising.

CTV is now more than half of the money spent through Viant

The deal came out with Viant’s third-quarter results. Revenue rose 29% to $110.4 million. Advertisers raised CTV spending on the platform by nearly 40%, and CTV passed half of all spend, a record share. Viant expects fourth-quarter revenue of $130.5 million to $133.5 million.

Profit went the other way. Net income fell to $2.6 million from $5.2 million a year earlier. This year Viant also bought TVision, which measures whether people actually look at the screen. On the call, the company said costs will rise about 25% next quarter, partly because of the two deals. AdExchanger reported that the stock fell about 7% after hours.

Viant expects almost no Waymark revenue in 2027

AdExchanger called Waymark “more of a bet than a business” for now. Viant itself said the unit will add little revenue this quarter or next year. Other CTV ad tech firms are buying too: Affle agreed to buy Perion for $420m earlier this autumn. Sellers are also cutting TV inventory into smaller pieces, as when PubMatic began selling CTV ads by episode.

The first test is Viant’s own forecast. If Waymark brings in new small advertisers, it should show in fourth-quarter revenue, which Viant has put at no less than $130.5 million.