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TubeMogul’s Ad Revenues Already Surpass Analytics Sales

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TubeMogul announced today that it has built an ad network on top of its distribution and analytics platform, extending its capabilities to help advertisers better target their video ads to users while also increasing visibility into how those ads perform. But the big revelation might be that the ad network, which has just been operating in beta trials over the past year, is already bringing in more revenues than TubeMogul’s analytics business.

TubeMoguls’ Play Time ad network gives advertisers a level of transparency and data that most other ad networks don’t provide. While advertisers are given lists of participating publishers that their campaigns might have run on, in most cases they don’t get very detailed analysis of where their ads appeared or how well they performed. It tells advertisers where on a publisher’s page a video ran, whether it was click-to-play or auto-play, and gives them detailed information about how long an ad played before a viewer clicked away.

TubeMogul has opened an office in New York and hired a couple of media buyers, and has spent the past year testing the platform with more than 100 campaigns from advertisers like 20th Century Fox, Coke, Nestle and Kmart. To extend its reach, the company has been buying inventory on Facebook and other top sites, and it is using its analytics platform to target ads to users that are most likely to view them. By doing so, TubeMogul CEO Brett Wilson says the company has seen click-through rates up 200 to 400 percent above average video ads, with viewing times up some 30 percent.

So far the program has been extremely successful. Despite being in testing, the Play Time ad network already racks up more in revenues than its traditional analytics business. But the company has plans to increase those revenues even further, by making its network an open platform for media buyers, while also extending its tools out to its publisher partners. By extending the Play Time network out as a self-serve platform, advertisers will be able to manage campaigns on their own without TubeMogul’s help, which should help increase the volume of ads that can be delivered through the network.

Just as importantly, the company has plans to make its ad targeting tools available to publishers, allowing them to improve CPMs and engagement times of the ads that appear on their pages. “All of the same technology that we use for ourselves is going to be available for our publishing partners. We will be giving our publishers the same audience segments and targeting information back to them to help them increase their own play time,” Wilson said.

Related GigaOM Pro content:

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8 Responses to “TubeMogul’s Ad Revenues Already Surpass Analytics Sales”

  1. Congrats to the guys at Tubemogul for pulling this new direction for this business off. They are entering a whole new highly competitive space, but have a solid differentiated product (for now). I wonder how long they can remain differentiated, as I would imagne that all of the major well funded competitors who read this last night are going to work at double speed to begin offering competitive solutions and will leverage their advertising partners to help them gain access to the level of data that Tubemogul has. It will take the ad networks some time to make this happen, perhaps some time, thus giving Tubemogul a head start that they can run with.