Video ad platform Adap.tv's parent company AOL has reported a 12% year-over-year growth in revenue and strong growth in global advertising for Q3.
Total third-quarter revenue increased to $626.8 million, compared to $561.3 million in Q3 2013 and advertising revenue increased by nearly 20%, to $473.4 million.
AOL chairman and CEO, Tim Armstrong, said during the quarter global advertising and other revenue grew a total of 18% year-over-year, reflecting a 44% growth in third party platform revenue. This was driven by growth in the sale of premium formats and by the inclusion of revenue from Adap.tv for a full quarter in 2014, versus approximately one month in 2013.
AOL, which also owns TechCrunch and the Huffington Post, agreed to buy Adap.tv for $405 million in cash and stock in August last year.
Following these Q3 results and last month's announcement that Foxtel’s MCN and Adap.tv would be launching the world’s first private programmatic trading market, combining television and online video, Sydney-based MD of Adap.tv, Mitch Waters, said the company was 'riding the tidal wave' of recent successes.
“The amount of customers here that are using our platform has doubled this quarter and we are really seeing the fruits of our labour,” Waters said.
Waters attributes this increase to the recent regulation by the IAB of viewabilty standards, a healthy brand safety stable – Adap.tv works with no less than seven third party brand safety tools, and the general enthusiasm and positivity from an industry hungry for more video advertising.
He also has high hopes for Q1 next year as more and more brands seek to merge video into their marketing mix.
According to the second annual State of the Video Industry Report, released in Australia by the IAB and Adap.tv last month, online video spend is set to rise 37% in the coming year, and one fifth of inventory is being bought programmatically.
Adap.tv aims to change the way video advertising is bought and sold, using its technology to help brands, agencies, publishers and ad networks plan, buy and measure billions of video ad trades programmatically - across web, linear TV and mobile video.
The move allows advertisers and agency screen traders to segment and buy Foxtel TV audiences in the same way and at the same time as they buy online video in the MCN network and beyond.
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