TubeMogul, the brand-focused video marketing and technology company, is having a gangbuster year, and its expanding Toronto office is contributing its fair share to the company’s success.
Though the company began as an analytics-focused entity, a pivot to the growing RTB and programmatic video ad buying space two years ago has led to revenue of more than $100-million in 2013. Now, their mission has become to further enlighten brands to the advantages of managing their own ad spends rather than using agencies and elaborate solicitation processes.
TubeMogul opened its downtown Toronto office in August of 2012, and a quick glance into the space shows lots of empty chairs waiting to be filled in coming months.
Trajectory in Canada
Grant le Riche was chosen to lead the Toronto office, spread the word of TubeMogul’s success and fill those chairs.
Canada contributed 12% of that $100-million, le Riche said. “And the trajectory for next year is much more than that,” he added
Further statistics released by the company say it’s a good time to be a RTB video buyer in Canada. Though competition is heating up in the video ad buying space, prices for inventory are still cheaper than in other developed nations.
The State Of Real-Time Video Advertising in Canada says the CPM in Canada is $3.27 less than it is in the United States and $6.00 less than in Australia. This trend will not continue indefinitely, as increased adoption and competition will eventually lead to higher prices.
“It’s cheaper in Canada because those American sites look at Canada as kind of gravy. They make most of their money in the U.S., and there never really was a big demand in Canada for this inventory. And more and more, increasingly, people are taking advantage of it.”
Pushing their PlayTime video platform as a tool for brands, rather than agencies, TubeMogul’s raison d’être is to reducing inefficiencies and costs.
“Clients are starting to understand that they can take technology into their own hands, and save themselves probably half their budget, become way more efficient, and have more tools at their disposal,” le Riche said.
A joint case study from TubeMogul and Chinese technology company Lenovo said that this direct brand-technology integration led to a 70% cost-savings for the client. One can imagine how this led to TubeMogul being named the Lenovo’s Global Partner for Programmatic Video Advertising in early December.
“Clients are starting to understand that they can take technology into their own hands.”
Le Riche attributes both technological innovation and simple process optimization for the savings. The RFP process, along with report collection and standardization are particular sources of inefficiency, he said.
“There’s a lot of room for human error, and there’s a lot of wasted time in administrative work and not necessarily strategy,” he said. “This is really just putting the tools in planners’ hands.”
The trend toward brands moving more creative activities in-house support TubeMogul’s strategy, and Canada’s increasing demand for video advertising technology means the company can expect more growth. Le Riche said he expects Canada to hit 20% of TubeMogul’s revenue next year.
Learn more about RTB and Programmatic Buying in our Dx3 Guide.