Posts for 'SpotXchange'

  • VideoNuze Podcast #286: Huge Change is Underway in TV and Video Advertising

    I'm pleased to present the 286th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    The past couple of weeks have brought into stark relief the tectonic changes happening in the video and TV industries. Linear ratings are way down, audiences are fragmenting to on-demand sources,  pay-TV subscriber losses are up and advertisers are shifting their spending.

    In this week’s podcast, Colin and zero in specifically on the huge shifts occurring in TV and video advertising. Advertisers’ priorities and buying processes are fundamentally moving toward more flexible, data-driven approaches. I explain why programmatic video/TV and mobile video ads are surging, looking at recent results from TubeMogul and SpotXchange as key evidence (see here and here for more). We also get into why advertising-supported VOD could have a bright future.
    Listen in to learn more!

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  • SpotXchange Sees Surge in Mobile Video Ads and Private Marketplaces

    Supply-side video ad platform SpotXchange released new data this morning highlighting huge growth in mobile video advertising and private marketplaces by premium publishers.

    SpotXchange said it experienced 800% growth in mobile video ad spending in the first half of 2015 vs. the first half of 2014 as mobile accounted for 19% of total spending on its platform vs. just 4% a year ago. There’s almost certainly more rapid growth ahead, as recent data from Ooyala revealed that 42% of all video views in Q1 were on mobile, with 50% expected later this year. eMarketer is forecasting mobile video will account for $2.62 billion or 34% of the $7.8 billion expected to be spent on online video ads this year.

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  • More Mobile Video Ads Enabled Via AudienceScience-SpotXchange Programmatic Partnership

    A new partnership announced by video ad buying platform AudienceScience and programmatic video supply-side provider SpotXchange aims to accelerate video advertising on the mobile web and in mobile apps. The companies have completed an OpenRTB integration enabling advertisers using AudienceScience’s Helios system to access mobile video inventory that publishers manage using SpotXchange.

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  • Videoplaza Launches Konnect, A Supply Side Programmatic Ad Platform

    London-based video ad tech provider Videoplaza has launched Konnect, a supply side programmatic platform intended for broadcasters and other premium content providers. Currently, over 50% of European broadcasters use Videoplaza's Karbon video ad serving platform, so the move into programmatic is a natural extension for the company.

    In fact, Videoplaza's CEO and founder Sorosh Tavakoli told me that broadcaster customers have been asking for the company to enter the programmatic space. Sorosh said they're motivated to work with software providers that are already integrated with existing workflows and which offer enterprise level customer service plus full transparency and control. Sorosh believes all of these are Videoplaza differentiators vs. competitors.

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  • The 10 Biggest Online Video Stories of Summer 2014

    September is here and that means summer 2014 is in the rear-view mirror. For online video and the broader video ecosystem, it was another busy few months, as viewers around the world continue to shift their consumption patterns, with many companies scrambling to keep pace. Below I've distilled my list of the 10 biggest online video stories of the summer - read on and let me know if I've missed something!

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  • European Broadcast Giant RTL Group Buys 65% Stake in SpotXchange for $144 Million

    European broadcast and entertainment giant RTL Group has bought a 65% stake in online video ad platform SpotXchange for $144 million, plus an earnout based on performance and an option to buy the remaining 35%. SpotXchange will continue to operate as an independent company, with CEO Mike Shehan saying that funds will be used to accelerate growth, particularly in Europe.

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  • Video Ad Platform SpotXchange Reports 145% Revenue Growth in Q1 '14

    More evidence of the boom in online video advertising as SpotXchange has reported that its Q1 '14 revenues increased 145% vs. Q1 '13. The company pointed to a slew of new premium content provider customers including Hearst Digital, Meredith Video Solutions, Zynga, The Atlantic and Billboard as helping fuel its growth. Over the past few quarters SpotXchange said it has added 80+ supply side platform partners and integrated with 30+ demand side platforms.

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  • SpotXchange's CEO Explains Its Jump to Top Position in comScore's January 2014 Online Video Ad Rankings

    SpotXchange landed at the top of comScore's January, 2014 U.S. rankings with nearly 3.5 billion video ads viewed, up from 2.9 billion in December, 2013. I spoke to SpotXchange's CEO Mike Shehan to learn more about what was behind the rise and get his overall take on the video advertising landscape and programmatic. Mike patiently shared an extremely detailed window into this quite complicated market. An edited transcript follows.

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  • SpotXchange: Programmatic Now Up to 46% of Revenue

    In another sign of how significant programmatic is becoming to video advertising, SpotXchange announced this morning that 46% of its revenue came from programmatic in 2013. In December alone, it was up to 57%, 4x as much as a year earlier, in December, 2012. Programmatic powered a 74% increase in Q4 '13 revenue vs. Q4 '12.

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  • VideoNuze Podcast #197 - Understanding Programmatic Video Advertising

    I'm pleased to present the 197th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. At Advertising Week this week in NYC, the dominant theme I heard about was programmatic video advertising. Though it's an important and growing part of the larger video advertising space, it's still early days, so even the very definition of "programmatic" doesn't seem to have clear consensus.

    In this week's podcast I explain the 3 main elements of programmatic as I understand them: automating certain buy/sell processes, using data to improve targeting and optimize yield/ROI, and using dynamic pricing models like real-time bidding. Depending on who you talk to, programmatic can refer to one or more of these elements.

    One of the key topics of the week was how programmatic can be used by "premium" video content providers/publishers. In the podcast I also discuss this in-depth. I'm personally continuing to get my head around programmatic, so if I've misstated or mischaracterized anything, let me know and/or leave a comment!

    Click here to listen to the podcast (19 minutes, 22 seconds)

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  • Videology Unveils "Revenue Engine" Product for Video Publishers

    Video ad tech provider Videology is unveiling "Revenue Engine" today, a new product for video publishers to drive premium programmatic ad revenues. Scott Ferber, Videology's chairman and CEO, told me last week that although the vast majority of Videology's business is servicing the demand side (agencies and advertisers), it is expanding its supply side technology offerings to help video publishers gain equal footing in the booming online video ad market.

    In our discussion Scott emphasized one particular feature of Revenue Engine - the ability for publishers to do scenario modeling of different variables in order to gain recommendations for optimal inventory pricing. The system works by including available inventory, prior performance data, buy-side criteria and other factors such as minimum pricing requirements.

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  • SpotXchange Launches Programmatic Video Ad Platform for Publishers, Emphasizes Transparency

    SpotXchange has announced its publisher-side programmatic video ad platform today. Mike Shehan, SpotXchange's CEO told me that key differentiators are strong transparency, improved yield management and deal management controls. Mike said that video syndicator NDN (#6 ranked property by comScore in July) has been using the platform exclusively since the summer and has seen a big boost in its yields.

    With the SpotXchange platform, publishers are able to expose and manage select inventory to all demand-side sources such as ad networks, demand side platforms (DSPs), agency trading desks and the SpotXchange marketplace. Mike said numerous features are aimed at alleviating publishers' traditional concerns that programmatic creates possible channel conflict with direct sales efforts.

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  • Forrester Forecasts Over $1 Billion in RTB Video Ads in 2014

    Forrester has updated its forecast for the real-time bidding (RTB) segment of the online video advertising market, calling for a 71% increase in 2013 spending to $686M and another 66% increase in 2014 to $1.14 billion (see chart below). Forrester sees the increase in RTB spending accounting for 44% of the overall growth in online video advertising between 2012 and 2014. The forecast is part of a commissioned report for SpotXchange, available here.

    Forrester points to 4 drivers of RTB's rapid growth: more diverse pricing mechanisms that will increase RTB's appeal, especially for premium publishers; greater acceptance of RTB for mid-flight optimization; media buyers' desire to compliment traditional reach and frequency campaigns with targeted, engagement-oriented RTB campaigns; and automated RTB buying (and programmatic in general) that will reduce friction in the complicated online video market.

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  • New SkipIt Service Asks: "Would You Pay to Avoid Online Video Ads?"

    The age-old question of whether viewers will pay to skip ads will be put to the test in the online video industry with "SkipIt," a clever new service SpotXchange is launching today. For participating publishers, a SkipIt "chicklet" appears when a video ad starts playing; if the viewer clicks on it, the ad closes and the content continues. Each ad skipped costs the viewer $.10, which is automatically deducted from their pre-funded account. When an ad is skipped, the advertiser receives a credit from the publisher who is paid a percentage of the viewer's fee by SkipIt. (see SkipIt's video at bottom for more)

    Initial publishers testing SkipIt include CineSport, Film Annex, IDG TechNetwork, OneScreen, Tech Media Network and Tetris Online. Combined, SkipIt estimates this will represent 20 million video ads presented each day to over 100 million viewers.

    Michael Shehan, SpotXchange's CEO, explained a couple of weeks ago when he previewed SkipIt for me that the service is intended to empower viewers with more choice about which ads they watch, reduce wasteful spending by advertisers and deliver a more satisfying experience by the content publisher.

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  • Who Are Video Ad Networks Really Working For?

    Following is a guest post from Erik Swain, Vice President of Operations of SpotXchange, a leading online video ad network and marketplace.

    Who Are Video Ad Networks Really Working For?
    by Erik Swain

    According to a recent eMarketer report online video ad spending will grow 52% this year. This $2.2 billion industry has caused a surge of ad networks to sprout up to meet customer demand. But beware. In order to leverage this gold rush of video ad spending, ad networks are striking deals with publishers that may not be in the advertiser’s best interest. And that’s bad for everyone.

    How Online Video Advertising Works Today
    Buying media for online video ads is similar to display media. Advertisers can purchase impressions from a video ad network to reach their ideal audiences across a variety of publishers. Some of these networks are blind, meaning they provide assurances that the ads are reaching the right audiences but no insight into on which sites the ads appear. Other networks are transparent, meaning they give the advertiser full visibility into the publishers where ads run. And there’s the most common middle ground, often referred to as opaque, where ad networks provide a list of the publishers it works with and sites where ads are likely to run.

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  • Online Video Ad Network SpotXchange Raises $12 Million

    Online video ad network SpotXchange is announcing this morning that it has raised $12 million from H.I.G Growth Partners, in its first round of institutional capital. Proceeds will be used to further build-out its video ad solution and also to expand internationally. SpotXchange is ranked as one of the top 5 video ad networks by comScore and recently launched SpotMarket RTB, a real-time auction-based market where buyers can bid on an impression-by-impression basis.

    The SpotXchange news further underscores a sizzling year of financings and M&A for video ad networks. This space is attracting strong investor attention because of the growing recognition that huge online video audiences and ever-improving content is inevitably going to draw more ad dollars to the medium. In addition, online video advertising offers clear benefits over traditional TV advertising such as better targeting and interactivity. Just last week eMarketer forecast 30+%/year annual growth in online video ad spending, driving the category up to $6 billion by 2014. Throughout the year I've noted various innovations in online video ad units and I expect this will continue alongside the online video industry's rapid growth next year.

    What do you think? Post a comment now (no sign-in required).

    Note: SpotXchange is a VideoNuze sponsor.
  • SpotXchange Rolls Out Real-Time Bidding Application

    Video ad network SpotXchange is introducing SpotMarket RTB this morning, an application that offers real-time bidding for online video ad placements. Using SpotMarket RTB, advertisers, agencies, ad networks and demand side platforms can buy ads on an impression-by-impression basis in SpotXchange's auction-based market which includes 700+ publishers.

    Targeting can be refined using SpotXchange's own behavioral targeting and retargeting tools and/or any third-party data sources. Using SpotMarket RTB, advertisers are able to increase their campaigns' performance by reducing waste and focusing on those sites with the best conversion results.

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  • SpotXchange Releases Ad Retargeting Service, Demonstrates Higher Conversion

    SpotXchange, the performance-based video ad network, took the wraps off its retargeting service this week and shared a case study of a quick service restaurant that used it to achieve dramatically higher conversion results. For those not familiar, retargeting refers to the practice of tracking users' behavior on specific sites and then serving them different ads on these sites (or others) they subsequently visit, depending on what behavior they've exhibited. Re-targeting is common in online display advertising, but as SpotXchange's CEO Michael Shehan explained to me, it's still nascent in online video advertising.

    Because of its emotional impact, most video advertising is focused on branding, rather than trying to elicit a direct response, which is of course what search marketing is all about. Retargeting is a tactic to try blending the two benefits. Imagine a user who has poked around at a site promoting trips to the Caribbean, but who didn't click on the "Book Now" link. In subsequent visits to this site or others, video ads promoting Caribbean travel, with messaging like "What are you waiting for" and clear calls to action would help move the user along the buying process. It's still early for video ad retargeting, but to the extent that it can help conversion rates and in turn spur higher CPMs, it will be welcomed in the market.

    What do you think? Post a comment now (no sign-in required).

  • SpotXchange to Partner with Quantcast for Demographic Targeting and GRP Pricing

    Performance-based video ad network SpotXchange will announce this week a new partnership with audience profiling firm Quantcast that will allow SpotXchange to offer demographic targeting across its entire network as well as Gross Ratings Points (GRP) based campaigns, the standard for TV media buying. As Bryon Evje, SpotXchange's EVP told me last week, being able to translate campaigns into a "cost-per-point" model for its clients means SpotXchange will be more appealing to traditional TV media buyers evaluating online video ad opportunities. SpotXchange's goal is of course to lure over ad dollars traditionally spent on TV.

    If a SpotXchange advertiser is also a Quantcast client, then the advertiser will be able to proactively define a specific audience it wants to target and then buy just those ad placements from SpotXchange that fulfill its objective. SpotXchange can use Quantcast's data on particular segments to determine how many GRPs are available, and then by combining its own pricing, can calculate what it would cost a client to reach that audience on a per point basis.

    SpotxChange can separately offer demographically-targeted ads by doing a real-time match against Quantcast's data, before an ad is served. If there isn't a targeted user available, then no ad would be served, reducing spending waste and enhancing the overall campaign's ROI.

    Quantcast's demographic information is derived by tracking the behaviors of 220 million Internet users across thousands of web sites. I talked briefly with Quantcast's head of business development Winston Crawford who explained that the company's secret sauce is an "inference model" that takes the behavioral data and mathematically translates it into affinity levels.

    From this Quantcast is able to build a "lookalike" model which allows advertisers to target those users who have similar affinities (and as a result a higher probably of converting) elsewhere on the web. In the case of SpotXchange, the lookalikes targeted would be users of sites in its publisher network. Quantcast already works with other video ad networks such as Tremor and BBE, along with many display ad networks.

    Melding online video ad campaigns with traditional GRP measurement has gained momentum this year, as other video ad networks like Tremor, BBE and YuMe have announced their own initiatives. Combining a GRP approach with demographic targeting offered by firms like Quantcast is further evidence that the online video ad medium is continuing to mature. Despite the news today that CBS Interactive is phasing out its use of third-party ad networks, as video ad networks move to offering campaigns that can be evaluated along traditional TV criteria, this should in turn draw traditional TV ad dollars to online video. That would mean video ad networks' value would increase.

    What do you think? Post a comment now.

  • Video Ad Networks Coverage Continued: SpotXchange, YuMe

    As evidence of the market's bullishness on ad-supported video, video-focused ad networks continue to flourish. I recently spoke to CEO/co-founders of two of the larger ones, SpotXchange and YuMe to learn more about their respective differentiators.

    SpotXchange CEO Mike Shehan explains that his company has focused on building a real-time auction model for publishers to offer inventory and advertisers/agencies to bid on it. The 2 main verticals SpotXchange is pursuing are local and casual games. Providing an easy on-ramp to video advertising is the key goal. Advertisers can load their campaigns, enter the marketplace, target by channel and/or region and determine how much they're willing to pay.

    Though it's a fully self-service model, SpotXchange offers client service model as well for larger brand advertisers. Michael says there are now 300 publishers in the networks, reaching 50 million unique visitors per month. The company grew out of Booyah Networks, a search and interactive agency which has fully-funded its development.

    Meanwhile, Jayant Kadambi, CEO of YuMe explains that the company spent the first 2 1/2 years from its founding in October '04 developing an ad-management platform that could handle various ad units and formats. In the absence of standards, Jayant believes this gives the company an edge in servicing advertisers and agencies that don't want to customize assets for various publisher sites' players. YuMe has built a network of 400+ publishers with 46 million uniques/month and a sweet spot of 750K-1 million video views/month and above (for a network total 150 million streams/mo).

    Jayant says he's been pleasantly surprised at how much video content is monetizable, though he's not suggesting user-generated video will be monetized any time soon. YuMe's CPMs are in the $10-30 range. The company is now in the mode of building scale, which could involve marrying its ad management platform to others' networks using its "Adaptive Campaign Engine." In fact, one recent partnership that was announced to do this was with SpotXchange. YuMe has raised $16M from investors including Khosla Ventures, Accel Partners, BV Capital and DAG Ventures.

    I'll have more on other video ad networks and how they fit into the larger broadband industry in the coming weeks.

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