Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 11

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 3
Chunk 11
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-time bidding. Supply sources often maintain relationships with various demand partners that compete with us, and it is easy for such supply sources to quickly shift their advertising inventory among these demand partners, or to shift inventory to new demand partners, without notice or accountability. Supply sources may also change the terms on which they offer inventory to us, or they may allocate their advertising inventory to our competitors who may offer more favorable economic terms, better solutions or more advanced technology. Supply sources may also elect to sell all, or a portion, of their advertising inventory directly to advertisers and advertising agencies, or they may develop their own offerings competitive to ours, which could diminish the demand for our solutions. In addition, significant supply sources within the industry may enter into exclusivity arrangements with our competitors, which could limit our access to a meaningful supply of inventory. As a result of all of these factors, our supply sources may not provide us with sufficient amounts of high-quality digital advertising inventory in order for us to fulfill the demands of our advertising customers. Some of the supply inventory is known as “Made for Advertising” and is less attractive to our advertising customers who may pay less for such inventory or exclude it from their business. Restrictions from advertisers, DSPs or SSPs regarding usage of this inventory source have impacted us and could materially adversely impact our operations and revenue.
 

Additionally, our ability to access advertising inventory in a cost-effective manner may be constrained or affected as a result of a number of other factors, including, but not limited to:

•      Supply sources may impose significant restrictions on the advertising inventory they sell or may impose other unfavorable terms and    
      conditions on the advertisers using their sites or platforms. For example, these restrictions may include frequency caps, prohibitions  
    on advertisements from specific advertisers or specific industries, or restrictions on the use of specific creative content or advertising
                    formats as well as content adjacent restrictions, which would restrain our supply of available inventory.                 
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•   Supply sources that offer online content and mobile applications may shift from an advertising-based monetization method to a pay-for-content/services
            model, allowing users of services to pay a subscription in exchange for not to be shown advertisements. If they elect not to pay, then        
        in order to use the service, the user consents to the processing of their data for advertising purposes. This may reduce available inventory.     
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•             Social media platforms, such as Meta’s Facebook or Instagram or Tik Tok, are “walled gardens” and may be successful           
    in keeping users