TubeMogul Q2: Mobile, Display And TV Grab 20% Of Global Spend

Brett-Wilson-TubeMogul-2015-2Video demand-side platform TubeMogul reported that more than 20% of global spend running through its platform in the second quarter came from mobile, programmatic TV and display ad formats.

Mobile ad spend drove 10-15% of spend, programmatic TV constituted between 5-10% and less than 5% came from display.

“We think this is significant, given our PTV [programmatic TV] product didn’t exist a couple of quarters ago,” TubeMogul CEO Brett Wilson told AdExchanger prior to the company’s Q2 earnings call Monday.

He emphasized the addition of the display product launched last quarter, Display for Branding, designed for TubeMogul’s largest brand advertisers: “Although the spend was lower [than for PTV], it was notable because display is a $30 billion addressable market that’s a complete new opportunity for us.”

Forty marketers beta-tested the tool representing “several millions of dollars of display purchased in Q2.” Demand from those marketers drove the creation of Display for Branding, which has brand-centric features including site-level targeting/reporting and botnet/fraud protections. The product isn’t meant for direct response.

TubeMogul had previously integrated with five major supply sources for display and facilitated several direct premium deals with publishers, so the pipes were in place to support its new display offering.

Wilson added that TubeMogul has progressively seen increases in the number of media companies using its platform in an advertiser capacity, in order to drive tune-in among TV audiences.

Nickelodeon, for instance, used TubeMogul in conjunction with SambaTV to determine that 28% of viewers who tuned in live to the Teen Choice Awards were first exposed to its digital ads.

Analysts asked Wilson to shed more light on recent moves by Google to remove YouTube inventory from the DoubleClick Ad Exchange (AdX). Wilson claims Google’s actions will have little to no impact because less than 5% of advertiser spend went to YouTube to begin with.

“We saw spend on YouTube decreasing gradually because Google didn’t support third-party viewability measurement and [because] YouTube has predominantly been a user-generated supply source for us,” Wilson said.

He called it an “obvious” move by Google to strengthen the buying power of its own bidder, DoubleClick Bid Manager, and claimed it wasn’t paying attention to advertiser needs.

“For advertisers, it’s a wake-up call that the Google Industrial Complex is not looking out for you,” Wilson said earlier. “This is about using the market leverage of YouTube to favor Google’s ad tech stack … since the announcement, we’ve had lots of advertisers reach out to express their displeasure with the move.”

Beyond the AdX fallout, TubeMogul had an otherwise solid quarter: total revenue was up 58% year over year to $45.4 million. Advertiser spend grew 72% to $105 million. It added 30 new Platform Direct (Tube’s self-serve buying tool) clients in the second quarter, closing in at 386 self-serve brand and agency customers.


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