Market Overview

Veritone® One Signs Agreement to Acquire Performance Bridge Media, Will Expand Market Share to over 25% of All Us-Based Podcast Ad Revenue


Veritone One, a subsidiary of Veritone, Inc. (NASDAQ:VERI) today
announced that it has signed an agreement to acquire Performance Bridge
Media, a leading and long-standing podcast agency. The
acquisition will make Veritone One, a performance-based media
agency, one of the largest entities to offer comprehensive, podcast and
radio solutions, helping clients efficiently acquire new business at
scale while building their brands. The acquisition is subject to
customary closing conditions, and is expected to close in the next
several days.

Performance Bridge Media, with its historic knowledge of podcast
campaign performance dating back to 2002, possesses unique insight into
one of the fastest growing segments of the estimated $221 billion US
Advertising Market.1 This insight will be leveraged by
Veritone and supplemented with the company's aiWARE artificial
intelligence platform, greatly enhancing the combined agency's highly
specific ad tracking and podcast targeting capabilities for brands.
Performance Bridge Media had 2017 net revenues of $3.7 million.

Ryan Steelberg, President of Veritone One, said, "Podcasts are primarily
original content that offers compelling, personalized edu-tainment, much
as Netflix and Amazon Prime Video have demonstrated with video
entertainment programming. In the United States, an estimated 73 million
people listen to podcasts every month, a 25% increase from 20172,
making podcasting an extremely attractive and scalable segment for

In a Q1 2018 study conducted by Nielsen3, 69% of all podcast
listeners agreed that podcast ads made them aware of new products or
services. The study also revealed that podcast listeners are more likely
to follow companies and brands on social media, and are more likely to
own a smart home device such as Amazon Echo, Google Home or Apple
HomePod. Specifically, the trend of mobile devices as the primary
listening device in the home or on the road is shifting to these smart
home devices, which are owned by 43 million people, approximately 18% of
the US population of adults 18 years and older, and the technology
powering those devices is expanding into automobiles, the second most
common place for listening to podcasts, after the home.4

Steelberg stated, "As industry leaders in performance-based advertising,
we are constantly looking to leverage the opportunities of today and
tomorrow. Acquiring Performance Bridge Media will allow us not only to
continue to execute on the rapidly-growing podcast opportunities of
today, but also to expand into the exciting growth opportunities offered
by tomorrow's voice technology innovations, which will amplify both
listener and brand experiences for on-demand media via smart home and
other connected devices."

The consideration paid by Veritone in the transaction was $6.0 million,
plus a contingent earn-out of up to $5.0 million based on Performance
Bridge Media's revenues for calendar year 2018, with such consideration
being payable primarily in Veritone common stock.

About Performance Bridge Media

Performance Bridge Media was founded in 2002 and is comprised of a team
of customer acquisition experts who have been building digital customer
acquisition programs for decades. The Company helps achieve client goals
utilizing a variety of tactics and channels, including influencer
marketing, streaming audio/radio, social media, contextual and
programmatic display, affiliate marketing, content marketing, digital
OOH & paid search, while applying the guiding philosophy of Test, Learn,
Scale. The Company's success is solely determined by its proven ability
to grow each clients' business.

About Veritone One

is a full-service advertising agency providing media planning,
media buying and creative development across broadcast, digital and
social media. Headquartered in Costa Mesa, Calif., Veritone One is a
subsidiary of Veritone, Inc.

About Veritone

Veritone (NASDAQ:VERI) has created the world's first operating system
for artificial intelligence. Veritone's aiWARE operating system
leverages the power of cognitive computing to transform and analyze
audio, video and other data sources in an automated manner to generate
actionable insights. The Veritone platform provides customers ease,
speed and accuracy at low cost. Veritone has been among the first to be recognized
by AWS for Machine Learning Expertise
, and has been recognized
by Oracle for Excellence in Application Development
. To learn more,
and interact with us on Twitter
and LinkedIn.

Safe Harbor Statement

This news release contains forward-looking statements, including
without limitation statements regarding the acquisition of Performance
Bridge Media and the expected timing of closing the transaction, the
expected market share of the combined company, how Veritone One plans to
leverage Performance Bridge Media's capabilities in its business, and
the expected benefits of the acquisition to Veritone One and its
clients. Without limiting the generality of the foregoing, words such as
"may," "will," "expect," "believe," "anticipate," "intend," "could,"
"estimate" or "continue" or the negative or other variations thereof or
comparable terminology are intended to identify forward-looking
statements. In addition, any statements that refer to expectations,
projections or other characterizations of future events or circumstances
are forward-looking statements. Assumptions relating to the foregoing
involve judgments and risks with respect to various matters which are
difficult or impossible to predict accurately and many of which are
beyond the control of Veritone. Certain of such judgments and risks are
discussed in Veritone's SEC filings. Although Veritone believes that the
assumptions underlying the forward-looking statements are reasonable,
any of the assumptions could prove inaccurate and, therefore, there can
be no assurance that the results contemplated in forward-looking
statements will be realized. In light of the significant uncertainties
inherent in the forward-looking information included herein, the
inclusion of such information should not be regarded as a representation
by Veritone or any other person that their objectives or plans will be
achieved. Veritone undertakes no obligation to revise the
forward-looking statements contained herein to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

1 US
Ad Spending 2018 Estimate by eMarketer

2 The
Podcast Consumer

3 Podcast

4 The
Smart Audio Report

View Comments and Join the Discussion!