Facebook acquired video supply-side platform LiveRail for an estimated $500 million in early July. Yahoo one week later snapped up video distribution platform RayV, which answered some questions about its video content delivery plans, but opened up more about monetizing those assets. And last week, video demand-side platform (DSP) TubeMogul boarded the IPO roller coaster, debuting at a lower-than-planned $7 per share before surging to a peak of $11.50 on its first day trading on NASDAQ.
“The reason we’ll probably see more transactions here is it’s not just three or four big digital companies making the buys – you can predict three or four Comcast-like companies making deals there, too,” said Dave Morgan, CEO of Simulmedia. “Everybody has to have a play in video because that’s the growth engine in digital at this point, in addition to mobile.”
This begs the question: What will happen to standalone video platforms like BrightRoll and SpotXchange?
Mike Shehan, SpotXchange’s founder and CEO, spoke about the evolution of the platform and where its tech will fit in the future.
AdExchanger: Are you an ad server or SSP doing yield management for publishers?
MIKE SHEHAN: We definitely view ourselves as a video ad monetization platform for the supply side – the publishers. But it’s really a combination of components that make up our platform. It’s not just an SSP. It’s not just an ad server. We view ourselves really providing a next-generation ad server for publishers and ultimately, everything we offer is designed to achieve two goals for publishers. One is for them to achieve higher yield. And two, drive down their operational cost as much as possible.