California-based ad-buying platform, TubeMogul, has announced plans to go public with an offering of up to $75 million.
The software company, which helps brands and agencies unify their video advertising on its programmatic platform, has filed a registration statement with the Securities and Exchange Commission (SEC), relating to a proposed initial public offering (IPO) of shares of its common stock.
The number of shares to be offered and the price range for the offering have not been determined.
Battling a fragmented and inefficient system
Within the SEC documents viewed by PerformanceIN, TubeMogul said it carried out campaigns for more than 2,000 brands in 2013.
It went on to say that as brands shift advertising spend to digital video, they encounter increasing complexity in executing their advertising campaigns.
It also said the digital video advertising market is in the early stages of a ‘significant shift’ toward enterprise software solutions that address the complexities of digital brand advertising – something it intends to capitalise on.
The file stated: “Brands, their agencies and other entities, which we refer to as advertisers, generally need to use dozens of digital advertising technology providers to execute a campaign. This has resulted in a complex, fragmented and inefficient system.”
For 2011, 2012 and 2013, TubeMogul’s total revenue was $15.7 million, $34.2 million and $57.2 million, respectively, representing a compound annual growth rate (CAGR) of 91%.
Total spend through its platform was $17.8 million, $53.8 million, and $111.9 million, respectively, representing a CAGR of 151%.
Increase in video views
TubeMogul explained how it offers advertisers visibility into the inventory they purchase, including enabling them to see video ad performance and viewability at any stage of a campaign.
“As consumers are increasingly watching video content on digital devices, advertisers are shifting more of their video advertising spend from traditional TV to digital video,” the company said.
“As a result, advertisers want to plan, buy and measure TV and digital video on an equivalent basis.”
Future strategy and risks
In terms of its future strategy, detailed in the SEC document, TubeMogul said it plans to extend its global footprint; expand its customer base to increase its global market share; increase its share of its customers’ video advertising spend and will expand into TV brand advertising, by continuing to build technologies that are relevant to brands that advertise on TV.
It also said it will continue to innovate by improving its algorithms and underlying software.
Risk factors highlighted include the company’s limited operating history, which makes it difficult to evaluate its current business and future prospects.
Although it began its operations in March 2007, it did not launch its platform nor begin generating substantial revenue until the second half of 2011.
Risk-wise, it also said if its customers do not maintain and increase their advertising spend through its platform, the revenue growth and results of operations will be adversely affected.
Such risks aside, if successful, shares will trade on the New York Stock Exchange under the ticker TUBE.
See below for relates stories:
Retargeting Ad Tech Co Criteo Files for IPO
RetailMeNot Files Registration Statement for IPO
TubeMogul Brings Video RTB to Smartphone and Tablet Devices