Story has been updated with Q2 results.
Tremor Video announced Thursday it has acquired Australian video supply-side platform TVN. Terms of the deal were not disclosed, though all 14 TVN employees will join the parent company.
Tremor CEO Bill Day told AdExchanger his company will increasingly focus on international opportunities this year, and that APAC – Australia specifically – are key growth areas for video consumption.
"Combined with the launch of our DSP and SSP, it gives us a better platform for growing programmatic outside of the US,” Day said.
TVN has an ad server and private exchange called the TVN Video Private Exchange (VPX).
But the real value TVN brings are its relationships. “We had the expertise in technology development, while they were more like a technology integrator with embedded relationships in the region,” Day said. “TVN is the catalyst [for us in APAC], but there may be others that allow us to attack these markets.”
TVN will give Tremor more programmatic prowess in APAC, where the former has forged partnerships with big video and TV publishers like Foxtel, Network 10, MCN and Southern Cross Austereo.
In addition to its Australian presence, TVN has supply partnerships in New Zealand, Indonesia, Malaysia, Thailand and Singapore.
Australia is a ripe growth market for programmatic advertising. The Boston Consulting Group projected close to 25% growth in spend on programmatic display alone, to reach $724 million this year. Numerous reports indicate similar, if not more, growth for programmatic mobile video and private marketplace deals in the region.
The growth is due primarily to Australia’s sophisticated broadband infrastructure, the size of its population and its role as a test ground for US-based companies in expansion mode. Day also pointed out it has a “reasonably well-developed market for brand advertising, which fits closely with the opportunity for video advertising.”
Australia is a viable expansion target for many of Tremor’s peers – AOL inked a private marketplace deal with TV company Australian Multi Channel Network, and TubeMogul recently enabled programmatic buys across Australian digital out-of-home exchange Site Tour.
Tremor has worked to increase programmatic’s contributions to its overall revenue. (It made up 18% of its revenue last quarter.)
Programmatic accounted for 30% of Tremor's revenue in the second quarter, up from 18% last quarter. Total revenue was up 5.4%, growing to $46.1 million.
Tremor's All-Screen product, which it released in the second quarter of 2014, now contributes to 47.6% of Tremor's total revenue.
Day told AdExchanger Tremor's focusing on two strategic areas: growing programmatic for scalability and its cross-screen tool for specialization.
"Our All-Screen platform is geared toward buyers who want to optimize toward brand goals while growing efficiency," Day said. "While programmatic [is typically associated with] lower common denominator spending capabilities, what's unique about our DSP is our ability to optimize and buy based on things like viewability."
Analysts asked Tremor execs if the acquisition of TVN will have any material impact on revenue in the coming quarters. Although Day noted it was a small acquisition for the company, "we believe it will increase our programmatic traction globally."