Taboola’s Gannett Partnership: A Bold Move in the Performance Advertising Space

The digital advertising landscape is undergoing a seismic shift, with brands increasingly seeking alternatives to walled gardens like Google and Meta. Enter Taboola, which has doubled down on its partnership with Gannett—a move that could position it as a key player in the $25 billion performance advertising market. By expanding its collaboration with Gannett, Taboola is leveraging AI and first-party data to offer advertisers a new pathway to reach audiences across Gannett’s vast network of trusted publications, including USA TODAY and over 200 local outlets.

The Strategic Shift: From Recommendations to Performance Ads

Taboola’s partnership with Gannett began in 2013, primarily focused on content recommendations. But in April 2025, the duo announced a major pivot: Taboola’s new Realize platform now grants performance advertisers access to Gannett’s display ad inventory. This marks a departure from Taboola’s traditional role as a content discovery tool and signals its ambition to compete directly with giants like Google’s Display & Video 360.

The Realize platform uses AI to optimize campaigns by analyzing first-party data from Taboola’s publisher integrations—a critical edge in a post-cookie world. This data advantage allows advertisers to target users with precision, reducing reliance on cookies and enabling measurable outcomes, such as customer acquisition or engagement.

Why the Partnership Matters

For Taboola:
- New Revenue Streams: Access to Gannett’s premium inventory expands Taboola’s addressable market. With 600 million daily active users across its network (including OEM partners like Samsung), Realize now offers scale rivaling walled gardens.
- AI as a Competitive Weapon: The platform’s machine learning engine, trained on publisher-level data, can predict ad performance and optimize placements in real time. Early adopters like eToro and Babbel report measurable ROI gains.
- Strategic Pivot: CEO Adam Singolda calls this an “Amazon moment”—a bold shift into performance advertising, which Taboola estimates could capture $55 billion in underperforming ad spend.

For Gannett:
- Enhanced Monetization: Gannett gains a revenue-sharing model that monetizes its audience without ceding control to third parties. Tim Wolfe, SVP of Revenue Operations, highlights the partnership’s role in boosting engagement and subscriptions.
- Audience Growth: By integrating Realize’s AI, Gannett can refine its audience targeting, attracting advertisers seeking high-impact placements on trusted news sites.

Market Context and Risks

The partnership arrives as performance advertising faces challenges. Social platforms like Meta and Google have seen ad fatigue and rising costs, prompting brands to seek open-web alternatives. Realize’s transparency—offering brand-safe placements on premium sites—aligns with advertiser demand for accountability.

However, risks remain:
- Adoption Rates: While Realize’s AI is promising, advertisers may need time to trust its optimization algorithms.
- Competitor Pushback: Google and Meta could retaliate with their own open-web solutions, squeezing Taboola’s margins.
- Data Privacy: Regulatory scrutiny over first-party data use could complicate Taboola’s edge.

The Financial Outlook

Taboola’s Q1 2025 results hint at momentum. Revenues tracked toward the “high end of previously disclosed guidance ranges,” with growth likely bolstered by the Gannett partnership. Meanwhile, Gannett reported a 15% year-over-year jump in digital ad revenue in Q1, with Taboola’s contribution cited as a driver.

Conclusion: A High-Reward, High-Risk Gamble

Taboola’s bet on Realize and its Gannett partnership is a calculated play for market share. With AI-driven precision and access to premium inventory, it’s well-positioned to tap into advertiser frustration with walled gardens. However, success hinges on rapid adoption and overcoming entrenched competitors.

For investors, the stakes are clear: Taboola’s stock (TBLA) has surged 30% since the partnership’s April announcement, but sustained gains require proof of scalability. If Realize delivers on its $55 billion addressable market claim—and advertisers flock to its transparent, performance-driven model—this could be a turning point. Conversely, failure to outpace Meta and Google’s innovations could leave Taboola stuck in the middle.

The partnership’s true value will be measured not just in revenue growth but in whether Taboola can redefine performance advertising for an audience-starved open web.