Perion Network Ltd. (PERI): Marketing Mix Analysis [Dec-2025 Updated]

You're tracking a company making a huge strategic shift, trying to prove its new AI platform can replace a legacy business that still chips in 21% of Q3 revenue. Honestly, seeing a company like Perion Network Ltd. pivot from search dependency to a unified, AI-powered play centered on Connected TV and Retail Media is fascinating to watch. This isn't just a refresh; it's a full-scale platform overhaul. We need to see if their new Product focus, global Place strategy, Promotion signaling confidence via a $200 million buyback, and Price structure supporting a $430 million to $450 million revenue target for 2025 actually line up. Dive in below as I break down the four P's of their marketing mix to see if this transformation is priced right.

Perion Network Ltd. (PERI) - Marketing Mix: Product

The product element for Perion Network Ltd. centers on its unified, AI-powered advertising technology platform, which is the core offering to customers.

Perion One: Unified, AI-powered advertising technology platform

The company's strategic transformation is built around the Perion One platform, which aims to unify all technologies under a single system to streamline and optimize omnichannel advertising. This platform is positioned as the operating system for modern marketers.

New AI-Driven Product Enhancements

Perion Network Ltd. has introduced specific AI-driven solutions to enhance its product suite:

• Perion Outmax: Introduced in Q3 2025, this incorporates the AI from the acquired Greenbids to maximize performance across social, CTV, and web channels.
• SODA (Supply Optimization & Demand Amplification): Launched in September 2025, this is a next-generation AI algorithm for Supply Path Optimization (SPO) for publishers, delivering SPO 2.0. SODA is already in use by Mediatransports to optimize DOOH campaigns.

High-growth channels

The product focus heavily targets high-growth channels, which demonstrated significant year-over-year financial performance in the third quarter of 2025. Connected TV (CTV), Digital Out-of-Home (DOOH), and Retail Media are key areas of investment and growth for Perion Network Ltd..

The revenue contribution from these channels in Q3 2025 was substantial, showing a clear shift in the product mix away from older formats. For instance, CTV revenue grew by 75% year-over-year, reaching $16.6 million, which accounted for 15% of total revenue. DOOH revenue increased by 26% year-over-year to $24.1 million, making up 22% of revenue. Retail Media vertical revenue grew by 40% year-over-year to $29.4 million.

Here is the channel revenue breakdown for Perion Network Ltd. for the three months ended September 30, 2025:

Search Advertising

Search Advertising revenue still contributes a significant portion of the total, accounting for 21% of Total Revenue in Q3 2025, amounting to $22,789 thousand. For the three months ended September 30, 2025, Search Advertising revenue increased by 9% year-over-year. However, the Web revenue segment, which is part of Advertising Solutions but distinct from the high-growth channels, experienced an 11% decline in the same period.

Perion Network Ltd. (PERI) - Marketing Mix: Place

The Place strategy for Perion Network Ltd. centers on leveraging its unified Perion One platform to ensure its advertising technology and inventory are accessible across the complex digital ecosystem, with a strong historical foundation in the United States.

Global reach: Majority of revenue from the United States

While the majority of historical revenue has been generated from the United States, Perion Network Ltd. is actively diversifying its supply and demand footprint globally. The company leverages its established U.S. presence, which spans over 30 countries, to introduce new technologies like the Greenbids AI capabilities worldwide. The distribution model is built to serve a global client base of brands and agencies.

Strategic expansion: New partnerships in Asia, specifically Korea (KT Corporation, NHN AD)

Perion Network Ltd. has made concrete moves to expand its physical and digital reach into high-growth APAC markets. This expansion is anchored by strategic integrations in South Korea. The APAC DOOH Market size is estimated at $21.64 billion in 2025.

• Partnerships established with KT Corporation and NHN AD in August 2025.
• These deals represent Perion Network Ltd.'s first direct programmatic supply integrations in Korea and are expected to begin contributing to revenue in Q4 2025.
• The integration with KT includes programmatic DOOH capabilities across 179 high-visibility subway screens on the Shinbundang Line and Seoul Metro Line 9.
• NHN AD provides access to an additional 85 screens in premium fitness clubs and golf driving ranges.

Distribution: Direct-to-client via the Perion One platform for brands and agencies

The core distribution mechanism is the Perion One platform, launched in February 2025, which unifies all of Perion Network Ltd.'s technologies into a single system for brands, agencies, and retailers. This platform acts as the direct conduit for accessing inventory and delivering advertising solutions, moving away from a fragmented brand structure.

DOOH footprint: Expanding across the U.S., Europe, and Asia through media owner integration

Digital Out-of-Home (DOOH) is a key growth engine, demonstrating significant year-over-year acceleration, validating the strategy of integrating premium media supply. The company launched the Perion DOOH Player to enhance its full-stack technology for DOOH and Retail Media.

The performance of the DOOH segment in recent quarters shows this expansion in action:

Global DOOH expansion includes partnerships with Novisign US and SkyRise EU, as well as Airtango Media DACH, alongside the new Korean integrations. The company also expanded in China through a partnership with GIMC.

Channel agnostic: Platform structure allows seamless adaptation as advertiser spend shifts

The architecture of Perion One is designed to be channel agnostic, unifying solutions across multiple environments, which allows it to capture spend as it moves between channels. The platform integrates solutions across:

• Digital Out-of-Home (DOOH)
• Connected TV (CTV)
• Retail Media
• Social and Web platforms

The integration of the Greenbids AI technology into the Perion One platform, creating Perion Outmax, specifically positions the company to capture deeper access to performance advertising budgets by aligning campaigns with brand KPIs across walled gardens. This structure helps ensure that media investments are more efficient, performance-driven, and accountable, regardless of the specific channel where the budget is allocated.

Perion Network Ltd. (PERI) - Marketing Mix: Promotion

Perion One strategy: Central marketing message unifying all brands and technologies.

The launch of the Perion One strategy in February 2025 aimed to unify all of the Company's brands and technologies into one advanced platform. This unified offering is intended to achieve greater customer retention, longer duration contracts, more large-scale customers, increased recurring revenue per customer, and a more efficient business structure. The platform is designed to connect the dots between data, creative, and channels, making digital advertising more effective. Management expected partial benefits from the Perion One strategy in the second half of 2025, with the full impact anticipated in 2026.

Performance-driven: Focus on delivering measurable outcomes for advertisers using AI.

The Perion One Platform harnesses technologies to help solve modern marketing challenges using AI. A key promotional element is the launch of the Performance CTV solution, designed to bring the precision of performance marketing to Connected TV. This solution aims to unlock new addressable budgets by making CTV accountable for real, tangible outcomes beyond impressions, targeting a market size of over $36B+. Search advertising was projected to remain stable, contributing approximately 20% of revenue in fiscal year 2025. The company reiterated its full-year 2025 guidance, projecting revenue between $430 million and $450 million, and Adjusted EBITDA between $44 million and $46 million.

Share buyback: Expanded program to $200 million, signaling management confidence.

Management signaled confidence through the expansion of the share repurchase program, which was increased to a total authorization of $200 million, adding $75 million to the existing program, pending regulatory approvals. The initial expansion in March 2025 raised the program from $75 million to a total of $125 million.

Industry validation: Leveraging multiple industry awards to build credibility and trust.

The company actively promoted its industry validation as part of its communication efforts.

• Perion Network stated it won industry awards during the third quarter of 2025.
• Undertone and Vidazoo secured TAG Certifications for 2024, symbolizing commitment to integrity.
• The company highlighted its participation in investor conferences, including Needham, Oppenheimer, Craig-Hallum Alpha Select, ROTH Technology, and Raymond James TMT & Consumer Conference in 2025.

Leadership changes: New CRO and CPO to accelerate global sales and product innovation.

The promotional narrative included strengthening leadership to execute the transformation strategy.

• Stephen Yap joined as the new Chief Revenue Officer (CRO) to lead the global sales force for advertisers.
• Kenny Lau was promoted to Chief Product Officer (CPO) to lead all product innovations.
• Mina Naguib was promoted to Chief Technology Officer.
• The CRO, Stephen Yap, participated in a fireside chat at the Needham conference on May 13th, 2025, alongside CEO Tal Jacobson.

Perion Network Ltd. (PERI) - Marketing Mix: Price

Price, for Perion Network Ltd. (PERI), is less about setting a single sticker price and more about the overall value capture mechanism as the business model transforms. You're looking at a company actively managing the transition from a high-volume, lower-margin legacy stream to a higher-margin, recurring software-based revenue structure. This strategy directly impacts how customers perceive and pay for the service.

The company's near-term financial expectations anchor the pricing power discussion. Perion Network Ltd. has reiterated its full-year 2025 Revenue Guidance to be in the range of $430 million to $450 million. Furthermore, the target for profitability, the 2025 Adjusted EBITDA Guidance, remains firmly set between $44 million and $46 million. This guidance suggests management is confident in the pricing power of its evolving product mix to deliver on profit goals despite the ongoing shift.

The internal focus on margin health is a key indicator of pricing success. The Margin Focus in the third quarter of 2025 showed a Contribution ex-TAC margin of a healthy 46%, which is a significant metric since Contribution ex-TAC (excluding traffic acquisition costs) is viewed as a more accurate measure of the top line. This Q3 margin is up from 16% in Q3 2024, showing clear operational leverage. The Adjusted EBITDA for Q3 2025 hit $12.1 million, representing 24% of the quarter's Contribution ex-TAC.

The underlying Pricing Model is fundamentally changing to support premium pricing. Revenue streams are deliberately shifting toward higher-margin, recurring software income, especially from newer offerings like the DOOH Player. This is a direct response to the massive contraction in the legacy Search business, which saw revenue decline by as much as 76% year-over-year in Q1 2025. To offset this, the high-growth Advertising Solutions are commanding better pricing. For instance, CTV revenue surged 75% year-over-year in Q3 2025, and Retail Media grew 40% YoY.

This strategic pivot justifies the Value Proposition and the ability to command better prices. Perion Network Ltd. is positioning its offerings to justify premium pricing through superior, AI-enabled performance and holistic, cross-channel solutions, defintely. The launch of new AI-driven tools like Perion Outmax and SODA is central to this. You can see the results of this value proposition in the growth of the Advertising Solutions segment, which grew 8% year-over-year in Q3 2025, even as the overall revenue grew by 8%.

Here's a quick look at the key financial metrics underpinning the pricing strategy as of Q3 2025:

The pricing strategy is clearly tied to the success of the new platform architecture, which is designed to create more predictable revenue streams. The company is actively working to convert more of its business to this model, as evidenced by the following strategic pricing levers:

• The DOOH Player launch is aimed at accelerating scalable, recurring, and predictable, high-margin growth.
• The Perion One platform unifies advertising channels to offer holistic solutions.
• New AI-first capabilities from the Greenbids acquisition enhance performance for top-tier brands.
• Share repurchase program expansion to $200 million signals management's confidence in intrinsic value, which supports premium pricing perception.

Finance: draft 13-week cash view by Friday.