Last year, we reported on video ad company YuMe’s ambitions to deliver effective video ads across multiple devices in the age of screen fragmentation. Business development managers and others with media jobs in online advertising may remember that YuMe’s Senior VP of Marketing, Ed Haslam, was talking back then about how to hold viewer’s attention across multiple screens at a time when online video advertising was starting to explode. And now his firm has pulled a technological rabbit out of the hat to do just that, with the launch of a new brand named Video reach.
A good year
YuMe, as the more informed business development manager may be aware, has had a rather good time of it over the last year. It raised $65 million during its IPO last July, just as it planned to do after turning profitable and posting a net income of $6.3 million (a radical turnaround from the $11.1 million loss it made in 2012). It also managed to increase its gross margin from 38 percent to 46 percent over the same interval and its revenue for 2012 had grown by 70 percent on the previous year to reach $116.7 million.
Figures like that tend to inspire confidence; its gamble that video streaming would rapidly supplant TV viewing, driving ad dollars online, now seems like a very sound one. But what, the intrigued business development manager will be asking, does Video Reach add to the equation?
Beyond cookie-based targeting
Basically, it adds to YuMe’s Connected Audience Network by allowing programmatic buying and selling of video ads. Unlike Connected Audience Network, though, Video Reach has been designed specifically for TV brand advertisers and agency trading desks.
“Most programmatic solutions for video advertising today utilize traditional cookie-based targeting hence can only work in web-based environments. YuMe’s first-party data science solution transcends cookies and allows for true multi-screen targeting in app environments such as mobile, tablet and Connected TV apps, as well as web for true cross platform reach, due to its deep, multi-screen Audience Aware SDK integrations.”
Buyers using either Connected Audience Network or Video Reach will be able to access the same video ad inventory, although different sales teams will be responsible for them. Video Reach’s team, says Haslam, has been “specifically trained to sell to trading desks.”