Adobe is set to acquire video advertising company TubeMogul for approximately $540 million.
TubeMogul’s video advertising platform enables brands and agencies to buy video advertising across desktops, mobile, streaming devices and TVs.
Adobe will integrate TubeMogul into Marketing Cloud solutions. Joint customers include Allstate, Johnson & Johnson, Kraft, Liberty Mutual, L’Oréal, Nickelodeon and Southwest Airlines.
The investment strategy of Adobe through the acquisition of TubeMogul is to create an advertising and data management solution that spans TV and digital formats, simplifying a complex and fragmented process.
Adobe is the leader in video content creation and delivery with its Premiere Pro CC and Primetime solutions. Adobe’s acquisition of TubeMogul will enable brands to capitalize on the shift to online video.
The acquisition of TubeMogul strengthens Adobe’s leadership in digital marketing and advertising technology.
Adobe Media Optimizer and TubeMogul will enable Adobe’s customers to maximize their video advertising investments. TubeMogul’s video advertising platform and Adobe Marketing Cloud will give access to first-party data and measurement capabilities from Adobe Audience Manager and Adobe Analytics.
“With the acquisition of TubeMogul, Adobe will give customers a ‘one-stop shop’ for video advertising, providing even more strategic value for our Adobe Marketing Cloud customers,” said Brad Rencher, executive vice president and general manager, digital marketing, Adobe.
Brett Wilson is the CEO and co-founder of TubeMogul. Brett Wilson will continue to lead the TubeMogul team as part of Adobe’s Digital Marketing business.
TubeMogul performance
Pernod Ricard whose brands include Absolut Vodka, Jameson Irish Whiskey and Malibu appointed TubeMogul in Australia. Pernod Ricard wanted to move from non-transparent media models to prove and tested framework.
In a joint case study Cadreon Australia revealed that TubeMogul PTV help drive 33 percent increase in sales for ASICS Nimbus shoes at the Athlete’s Foot retail locations.
TubeMogul said total spend for the third quarter was $138.3 million (+34 percent) over Q3, 2015. 75 percent of total spend came from Platform Direct versus 72 percent in Q3, 2015. Non-desktop pre-roll represented 49 percent of total spend in Q3. Mobile grew 65 percent, while Programmatic TV grew 271 percent and social grew 12 times.
For Q4, TubeMogul expects total spend to be nearly $172-$174 million. Revenue expected will be nearly $66-$68 million in Q4. Gross profit of TubeMogul will be nearly $45-$47 million and adjusted EBITDA of $6-$8 million.
In 2016, TubeMogul is raising guidance to total spend of nearly $562-$564 million. 2016 revenue of TubeMogul will be nearly $220-$222 million, gross profit of $151-$153 million and adjusted EBITDA of $4-$6 million.
