The company started as an analytics provider for online video,
but in the last two years has built out software that gives
advertisers the ability to buy video ad space through real-time
auctions from a variety of different ad exchanges and publishers
for a single campaign. In this way, TubeMogul is essentially a
demand-side platform that focuses exclusively on digital video.
That said, CEO Brett Wilson said his company has made a
concerted effort to integrate features into its platform that
should make big-brand advertisers more comfortable with buying ad
space from exchanges through automated means. One is a brand-safety
tool that scans each page before placing an ad, and another is a
survey product that gives advertisers feedback from viewers while
the ad campaign is still live. TubeMogul counts several of the big
agency trading desks among its clients.
"We feel there's a market void at the intersection of
programmatic and brand advertising that we can own," he said.
TubeMogul buys ad space for advertisers from open exchanges such
as Adap.tv, SpotXchange, BrightRoll Exchange, and Google's AdX, as
well as from publishers' private exchanges. In doing so, it goes up
against traditional demand-side platforms that are trying to add
video buying to a foundation built on buying display ad space. On
the network side of the business, TubeMogul has competition in
Tremor Video and Specific Media, among others.
Digital-video advertising increased 18% to a little more than $1
billion in the first half of 2012, according to an IAB study, but
digital video bought through real-time bidding accounts for just a
fraction of that . Yet the fact that the market is still maturing
is exactly the reason TubeMogul believes it is a good time to take
on a big round of funding and attempt to accelerate growth, Mr.
EMarketer expects the online video advertising market to reach
$2.93 billion in 2012, and grow to $4.14 billion in 2013.
Mr. Wilson said TubeMogul tripled revenue in 2012, to more than
$50 million. About half of its revenue comes from the ad-buying
technology business, while the other half comes from a video ad