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Entravision acquires strategic stake in TikTok reseller Jack of Digital

Entravision a leading global advertising, media, and ad-tech solutions company valued at $444 million announced today that it has entered into a definitive agreement to acquire a strategic stake in Jack of Digital, a digital marketing services company that serves as the exclusive advertising sales partner of TikTok in Pakistan. With this investment, Entravision will expand its commercial partnership reach across the South Asian region.

According to its annual report, Entravision earned approximately $760.2 million for the year ended December 31, 2021. Nearly three-quarters of the revenue came from the digital segment, while 19% of the revenue was generated by the television segment, and 8% of the revenue was generated by the audio segment. The consolidated adjusted EBITDA for Entravision in 2021, 2020, and 2019 was $88 million, $60.4 million, and $41.2 million respectively.

As reported by Profit magazine, the advertising and media market in Pakistan was valued at $2 billion in 2020, of which 20% is moved through the eleven largest media agencies in the country. The 2020 RECMA media agency ranking report shows that the combined earnings of the top eleven media agencies in Pakistan equaled $478 million in 2017, $397 million in 2018, $395 million in 2019, and $407 million in 2020.

As reported numerous times by Profit magazine, the existence of self-serve advertising tools, the nationwide trend of media in-housing, the proliferation of influencer marketing ecosystems, and the lowered barriers to entry for media buying mean that less than 25% of the $2 billion of the 2021 media and advertising industry in Pakistan is covered by media agencies. The big picture play with regards to the creator economy in Pakistan is estimated to be worth $100 million, per Founder Pakistan analysis.

Given that Entravision itself is valued at 5x its consolidated adjusted EBITDA and the advertising and media market in Pakistan was valued at $2 billion in 2020, coupled with a Bloomberg report that suggests influencer ecosystem leader WALEE is worth $50 million, it’s safe to assume that Jack of Digital is worth under $10 million.

This rudimentary calculation would mean that the strategic stake acquired by Entravision was worth at least $5 million.

Entravision believes that local content and service to the community in each of its 35 markets is an important part of providing a meaningful local service within those markets.

Founded in 2020 by Z2C Limited alumni Faisal Sheikh, Jack of Digital maintains exclusive advertising and data sales representations in Pakistan with short-form video platform TikTok, full-stack programmatic platform Eskimi, app entertainment tool SHAREit and ad fraud protection service Spider AF.

“We are very excited to announce our strategic investment in Jack of Digital, opening the door for Entravision to the South Asia market,” said Juan Saldívar, Chief Digital, Strategy, and Accountability Officer of Entravision. “With this investment, Entravision now provides creative digital advertising and marketing services in over 35 countries as we continue to strategically expand our global footprint.”

With Entravision’s investment in Jack of Digital, the Company again taps into a high-growth region of the globe with vast opportunities for increased digital connection. Approximately 1.8 billion people, or 23% of the world’s population, live in South Asia, including the countries of Pakistan, India, Nepal, Bhutan, Bangladesh, Afghanistan, and Sri Lanka. In Pakistan in particular, where Jack of Digital is headquartered, over 98 million people are digitally connected, representing just under half of the total population, with opportunities for significant growth.

“Entravision’s investment in Jack of Digital is a turning point for our company, and we look forward to partnering together to bring the best in digital media to the South Asian marketplace,” said Faisal Sheikh, CEO of Jack of Digital. “Having spent the past two decades working in the marketing and advertising industries, I’ve had the opportunity to partner with many different innovative digital players, and I believe having a company like Entravision to support our digital media business in South Asia will be a game-changer.”

Upon closing of the transaction, which is subject to customary governmental approvals, all Jack of Digital employees will remain with the company, and Faisal Sheikh will continue to serve as CEO of the business based out of its headquarters in Karachi, Pakistan. A career accelerant, the company counts Dastgyr marketing lead Saif Ali, Swvl global growth marketing manager Sidrah Ahmad, and Kuaishou Technology country manager Naeemuddin Syed, as alumni.

Rauff Hanif

Rauff Hanif is an entrepreneur and a journalist who covers technology for Founder Pakistan. He also consults early-stage startups with their Marketing, Business Development, and Hiring. email me at: rauffhanif@founderpakistan.com for anything tech!
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