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Mobile advertising and data provider Millennial Media Inc. (MM - Snapshot Report) recently forged a strategic partnership with Adsmovil, a premier mobile ad network in Latin America and the U.S. Hispanic markets, to foray into the media platform in South America, Central America and Mexico.

The deal will enable Adsmovil to leverage Millennial Media’s diverse mobile advertising solutions to reach a wide spectrum of consumers in the region and thereby generate more brand awareness.

According to digital media market research firm eMarketer, smartphone penetration is expected to reach 40% by 2016 in Latin America, a region that boasts over 400 million mobile users. Consequently, the strategic tie-up is likely to enable brands to target these consumers with more than 45,000 sites and apps.

Millennial Media expects to augment its revenues from increased market penetration amid stiff competition in the mobile ad segment. The company has developed about 350 million proprietary anonymous user profiles. The company reportedly delivers advertising campaigns through more than 7,500 distinct device types, out of which almost 20% include non-phone devices like tablets and gaming devices. The company intends to focus its development efforts more on such devices in 2013, and tapping new markets could be of immense significance in this regard.

Since its inception in 2006, Millennial Media has created a niche market through innovation and a diligent focus on mobile advertising platforms. The business model of the company hinges upon sophisticated data and technology, solid partnerships with global media and application developers across all operating systems, and healthy relationships with leading global brands.

Millennial Media has a Zacks Rank #3 (Hold). Omnicom Group Inc. (OMC - Analyst Report) is one of the leading players in the industry. However, other notable companies in the industry that warrant a look include MDC Partners Inc. (MDCA - Snapshot Report) and Publicis Groupe SA (PUBGY), both carrying a Zacks Rank #2 (Buy).

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