Startups

Another AdTech IPO? Videology Lands $60M From Catalyst, Comcast & Others As Online Video-Ad Market Booms

Comment

Thanks to the increasing consumption of digital video — and the fact that many of the largest content providers now force viewers to watch ads within those videos (Hulu, YouTube) — the growth of digital video continues to be one of the fastest growing areas of the online advertising market. Naturally, that rising tide (which is expected to continue) has begun to carry a handful of the veteran video-ad networks towards the public markets.

Last week, Tremor Video filed for its “long-awaited public offering” on over $105 million in revenue in 2012, for example. YuMe and Adap.tv are also on the list of potential IPO candidates in 2013 thanks to strong growth forecasts, Bloomberg reports. And the list of growing video-ad networks goes on — unfortunately for Google.

Today, it looks as if the online video ad market could be close to sending another veteran into the fray of the public markets. Although it’s keeping its cards close to its chest on that front, Videology announced today that it has closed a whopping $60 million round of Series D financing, led by Catalyst Investors. The company’s previous investors, including NEA, Valhalla Partners and Comcast Ventures also contributed to the round, along with Pinnacle Ventures, a Videology first-timer.

While CEO Scott Ferber said today that the company plans to use its new capital to ramp up international growth and invest more aggressively in its tech infrastructure and services, it’s also worth noting that the round brings Videology’s total outside investment to about $121 million. That puts it on par with Tremor Video, which had raised $116 million when it announced its plans to IPO.

Since its founding in 2007, Videology has grown to operate in 12 countries and now runs campaigns for 900 brands each year, in what it says has resulted in a “three-year CAGR of 190 percent.” But why, you ask? Simply put, Videology is a video platform that allows brands, agencies and media companies to plan, serve, manage, and monitor video ad campaigns. The key, however, is that the platform provides advertisers and marketers with specifications and features that are familiar to the TV world, while offering the more advanced targeting, optimization and analytics of digital media.

The company has gone through several incarnations over the years, beginning as an ad server and video content network, before shifting to a broadband network and adding this video advertising marketplace that aims to connect online video and TV, according to AdExchanger.

But we still have a while before TV, desktop and mobile advertising fully converge and true cross-channel advertising in all its forms hasn’t yet hit maturity, so for now Videology is hitting its stride thanks to the traction it has built up as a video ad server and distribution network. Meanwhile, AdExchanger reports, the company has also begun to expand into the supply-side, providing publishers with video content as well — covering its bases.

With the sale of video ad inventory becoming more automated and platforms likely to find it increasingly challenging to distinguish themselves from each other as a result, Videology has been making an effort to diversify. Today, it’s drawing revenue from each arm, but tomorrow the most successful video ad networks will either be those with the best or most premium content, or those that have developed the most effective and frictionless way to connect those buyers and sellers, i.e. a marketplace.

Of course, it’s not all sunshine and roses. We’re moving into what could be a time of significant flux in digital video advertising. YouTube qua Google is really player against which everyone else is measured, as it owns nearly one-third of the market. As a result, how it decides to structure its business model can a big impact on the market itself. For example, YouTube is toying with a subscription model, which (if it goes that way) would naturally put it in Netflix’s camp, while the other big player, Hulu, is solely ad-supported.

The last few years of growth have minted a number of sizable digital video ad networks, but the changes in the market, consumption patterns and some of the infrastructure of these networks themselves may not be kind to all players. Plus, at least for the foreseeable future, this is Google’s World. Nonetheless, Videology believes it is positioning itself in a way that will allow it to take advantage of whatever comes out of the flux in the marketplace. And $60 million in new capital to expand abroad and build out the right pieces certainly helps.

More TechCrunch

Ahead of the AI safety summit kicking off in Seoul, South Korea later this week, its co-host the United Kingdom is expanding its own efforts in the field. The AI…

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

11 hours ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

2 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

3 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities