Brand and agency clients that sign on as Platform Direct customers typically have longer lifetime value for the company, according to Wilson, who said that portion of its business is more scalable and thus incurs lower operating costs than its managed services side.
“What we’ve seen is when we sign up clients [on Platform Direct], they don’t leave the software and they spend more each year,” he said. “If you look at our Platform Direct spend last year, 82% of it came from clients we signed in prior years so it’s a much more predictable business for us.”
TV & Social
In addition to prioritizing sales of its software through a platform model, TubeMogul is ramping up its private marketplace offering called “On Demand” (formerly known as TubeMogul Select Access).
TubeMogul characterized this portion of its business as broadcast-quality content like episodic TV for streaming across desktop, tablets or connected TV.
More than 50 broadcasters are partners, including Univision and Discovery Communications, which recently expanded its partnership with TubeMogul to include "TV Everywhere" inventory such as its Discovery Go app.
Wilson said On Demand inventory is premium inventory not available in exchanges.
“We go to publishers, pre-integrate them into TubeMogul, but advertisers don’t get access until they go through a two-step process,” he noted. “The idea is we let publishers control the rules of the road, so [once the advertiser is fully approved] it’s available for purchase within their account.”
TubeMogul now classifies about 22% of total spend as "private" inventory, meaning half are deals that advertisers are setting up directly through publisher relationships, which Tube helps execute, and the other half are On Demand deals.
TubeMogul is also pushing into social video, particularly on Facebook and Instagram, where it claims 40 advertisers – including Lenovo, Kraft and Expedia - have run more than 100 video campaigns. TubeMogul became certified as a Facebook Marketing Partner this year.
TubeMogul also shared an update on its Bot Traffic Credit Program – or automatic refunds to client accounts for any inventory deemed nonhuman via its partner, White Ops. Wilson said the company refunded fewer than 20 clients this quarter, out of a total client base in the hundreds, so there was little impact from a revenue standpoint.
“We already minimized a lot of fraud, so this was more a matter of making this official as a policy,” he said. “We do think it’s something that makes us more competitive.”