The rising popularity of streaming video services is causing a knock-on effect for companies serving ads around that content. And here’s another example of that in action: today UK-based video ad platform Videoplaza is announcing a new $12 million round of funding.
Leading the second round of investment were Qualcomm (NSDQ: QCOM) Ventures and Innovacom, along with participation from prior investors Creandum and Northzone; and takes the total amount of funding in the company to almost $18 million.
Videoplaza says that it will be using the investment to help fund its international growth and product development. Those two areas appear to be running fast at the moment anyway: the company says that its client base already spreads across 17 markets, and in the past year its ad serving volumes grew five-fold. Some of its clients include the publisher Dennis, French commercial broadcaster M6 and Spanish newspaper group La Vanguardia and the France-Telecom-owned interactive ad network Unanimis, and it partners with other established names in the business, like Brightcove, to help monetize their video ad traffic.
Videoplaza’s target is to tap into some of the $160 billion that is estimated to be spent on TV advertising annually at the moment, and following those ad budgets as media buyers try to chase down viewers as they start watch more and more of that TV content on an ever-growing variety of screens, from IP-enabled TVs to smartphones, tablets, cars and desktop computers — and who knows what else. Videoplaza projects that by 2020 there will be more than 10 billion connected devices in consumers’ hands that could be used for consuming streamed video.
It is not the only one: companies like YuMe, spotXchange, BrightRoll (a Videoplaza partner), Hulu, CBS (NYSE: CBS) and many, many others are also scrambling for substantial market share in this space. It’s still a fast-growing area, with the amount of ad-funded, streamed video content still very much on the rise — both in terms of volumes and consumption — but there is bound to be some consolidation on the cards among these ad players, too.
A stake from a company like Qualcomm — which plays a central role in making processors and other parts and software for mobile devices — could potentially give Videoplaza a leg up in that respect. At the moment the vast majority of video ad consumption for Videoplaza is still coming from PCs: only eight percent came from other devices. But the company believes that by 2013 (that is, in a year) that will shift to a 50-50 balance.