Adobe acquired the Emeryville, California-based TubeMogul which offers a demand-side platform (DSP) that enables the planning and buying of video ads on all platforms, including TVs as well as desktops and mobile for $540 million or $14/share.
“Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs,” said Brad Rencher, executive vice president and general manager, digital marketing, Adobe. “With the acquisition of TubeMogul, Adobe will give customers a ‘one-stop shop’ for video advertising, providing even more strategic value for our Adobe Marketing Cloud customers.”
TubeMogul is a video demand-side platform (DSP) leader according to Forrester Research in its Q4 2015 Forrester Wave™ Video Advertising Demand Side Platform report. Adobe and TubeMogul share a long list of joint customers that will benefit from the integration of TubeMogul into Marketing Cloud solutions. Joint customers include Allstate, Johnson & Johnson, Kraft, Liberty Mutual, L’Oréal, Nickelodeon and Southwest Airlines.
Gartner VP Andrew Frank said that this acquisition of TubeMogul, which was among the first to develop a programmatic platform for video ads, “completes the picture” for Adobe’s Marketing Cloud platform.
“Adobe and TubeMogul share a similar culture and vision for the future of advertising,” said Brett Wilson, CEO and co-founder, TubeMogul. “The combination of Adobe Marketing Cloud with TubeMogul’s software creates a uniquely comprehensive platform that will help marketers always know what’s working — and act on it. We’re thrilled to call Adobe home and believe this will be a great move for our clients, team and shareholders.”
Forrester analyst Jim Nail told me that this was mainly “a vertical integration play,” since it complements Adobe Primetime’s “executional component” with a planning and programmatic buying tool.
He also said it could be only a matter of time, before Salesforce, Oracle or one of Adobe’s other major competitors buys a similar programmatic video ad platform, like Videology.