Shutterstock, Inc. (SSTK) Surges on Advertising Deal With Google
Shares of New York, NY, based Shutterstock, Inc. (SSTK) rose on Tuesday, against the backdrop of a strong day in stocks overall. Shutterstock's stock was up 14.19%, rising $6.91 per share, to close at $55.61, on volume of 1,830,255 shares. The stock spiked on the news that the company has entered into an online advertising deal with Alphabet's (GOOGL) Google unit.
On Tuesday, Shutterstock announced an API integration deal with Google. It is an image licensing deal that will give Google digital and mobile display advertising products. They will be used in connection with Google's Adsense, Adwords and Admob functions. Google will gain access to Shutterstock’s collection of over 90 million images.
The deal will enhance Google's ability to provide effective advertising formats to businesses, who are in need of responsive ads. Google is able to match professional images to ad copy, and then to assess the performance of those ads. Access to Shutterstocks image database will enable Google to easily test the performance of those images in connection with ad copy.
Shutterstock has a similar image integration deal working with Verizon (VZ). The company is in direct competition with Adobe Systems (ADBE), which has an inventory of about 50 million photos, vectors and videos.
As a result of the deal, Shutterstock's stock closed near its 52-week high. The stock price is up 74% year to date. The company plans to report its earnings for the second quarter on August 4.
"We developed our API and enterprise platforms to make it easy for companies like Google to access professional, high-quality content at scale and in a way that makes sense for their unique workflow," said Shutterstock Founder and CEO, Jon Oringer. "We're excited that Google has selected Shutterstock as the partner to add a new visual element to these powerful ad formats".
"High quality images are essential to create engaging marketing for advertisers of all sizes," said Google Director of Product Management, Woojin Kim. "Shutterstock's API has enabled a fast and seamless integration to enable Google to offer Shutterstock's vast image library for digital advertising."
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