Digital programmatic video advertising company TubeMogul, which recently teamed up with Foxtel, allowing the TV service to bring its video advertising operations in-house, has reported a Q3 revenue increase of 112%.
The global company, which has a Sydney office headed up by TubeMogul Australia and New Zealand MD Sam Smith, has reported Q3 revenue of US $27.4 million, an increase of 112% compared to $13.0 million in the third quarter of 2013.
Mobile spend doubled from the second quarter to 9% globally and the number of companies using the TubeMogul platform on a self-serve basis, jumped globally from 165 in quarter two, to 308.
Smith, who has worked at News Corp, Adconion, Ninemsn and Yahoo7, said Australia continues to be one of the most sophisticated programmatic video advertising markets in the world.
“During the quarter we focused on providing our agency and video trading desk partners with the right platform tools and support to ensure they achieved great success on behalf of their brand clients,” Smith said.
“We are seeing an increased focus on return on investment, measurement, and innovation. The benefits of automating and continuously optimising a marketer’s digital video branding campaign are becoming more evident to many Australian brands.”
Total spend during Q3 was $62.5 million, an increase of 144% compared to $25.7 million in the third quarter of 2013; gross profit was $19.2 million, an increase of 126% compared to $8.5 million in the third quarter of 2013, and gross margin was 70%, compared to 65% in the third quarter of 2013.
Australia's largest pay TV provider, Foxtel, which brought the TubeMogul platform in-house to drive its branding and customer acquisition efforts, was mentioned in TubeMogul's Q3 results as being a major highlight.
Smith said the key to programmatic momentum in this market is building a clear understanding around the advantages of creating a market ecosystem that enables brands, agency trading desks, and publishers to all secure positive returns and that remains TubeMogul's key goal.
TubeMogul CEO Brett Wilson said the shift of TV ad dollars into digital, the rapid adoption of software-based buying, and the desire by advertisers to gain more control and transparency over their ad spend by using self-serve platforms, had all contributed to the growth of the business.
In Q3 TubeMogul's net loss was $1.7 million, compared to $3.0 million for the third quarter of 2013 and adjusted EBITDA was $0.5 million, compared to $2.8 million for the third quarter of 2013.
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