Video display advertising technology platform Videology has stated that its revenue in 2014 will be more than double the figure recorded in 2012.
Videology, which has raised a total of $130 million in venture capital funding, revealed that it is set to post revenue of $300 million for the full-year 2014, up from the $135.5 million it managed in 2012.
More than 50% of Videology’s total revenue now comes from international markets outside of the US including North America, Europe and the Asia-Pacific region. The company says this is down to its expansion from running operations in just three countries in 2011 to 28 in 2014.
A “trifecta of opportunity”
Much of business’ rise in sales is down to what Videology Chairman and CEO Scott Ferber is labelling ideal market conditions, as growth in the digital video sector continues its ascent.
“Major brands have begun utilizing programmatic as a core media buying strategy, which has put upward pressure on both agencies and media companies to fully embrace these technologies,” said Ferber.
“Add to this the massive changes in consumer viewing habits, and you have almost a perfect trifecta of opportunity for a technology provider like Videology.”
Platform clients such as advertising agencies, trading desks, and media companies now make up 80% of Videology’s business. The remainder use Videology as more of a network, but Ferber says this will be closer to zero in the near future.
As for purchasing strategy, Videology says that just over 50% of its revenue now comes from television-centric buying rather than digital buyers. It has led to 90% of platform campaigns sold on a guaranteed cost per thousand (CPM) basis as opposed to dynamic CPM.
Ferber feels that there is a desire among television-centric brand advertisers to have a level of certainty in their campaign planning and some of the more traditional real-time bidding exchanges are not yet up to scratch.
“While exchange-centric, RTB technologies work well in certain scenarios, they haven’t proven to work for the largest brand advertisers who demand a guaranteed level of impressions to run on specific inventory during a given time period at a given cost,” he said.