How Adobe Is Stocking Up for the Future of Video
ADOTAS – Adobe is making a big push into online video by purchasing video ad manager Auditude in a deal that supposedly hits triple digits. Adobe clearly wants a bigger chunk of the online advertising space, it seems, and it’s willing to get it through several expensive acquisitions: It picked up the data management platform Demdex at the very beginning of this year. But the Auditude purchase sends the clear message that online video is about to explode, and Adobe wants to play a major role.
For Auditude, this acquisition is a great outcome. The deal occurred at a very healthy multiple of revenue and sends a clear signal to the market about the significance and value of online video advertising technology.
The rationale behind the deal seems clear. Adobe wants to move upstream and provide more sophisticated value-added services on top of their core infrastructure technology. Just like the telecommunications companies, Adobe doesn’t want to be merely the “dumb pipes” responsible for cheaply providing the infrastructure on top of which other companies make their fortunes. As internet-delivered video continues to explode and slowly work its way toward replacing traditional broadcast TV, Adobe clearly sees an opportunity to put their technology at the heart of TV 2.0.
For proof of the march toward connected TV, look no further than the recently announced partnership between LG and YuMe, where the latter company is helping Toyota serve ads to consumers who use a connected TV app store or search screen. By purchasing Auditude, Adobe is getting a roster of premium customers that translate very well to connected TV, including Comcast and Major League Baseball.
Adobe is already dabbling in connected TV with its Adobe Pass software, which is widely used by content owners to authenticate their video streams across connected platforms. As more networks look to monetize their content on internet-connected TVs, Adobe can now offer them ad serving and access authentication in one shop.
Then there’s Adobe’s already massive role in the online video space. Flash powers the vast majority of online video, yet Adobe has received relatively little financial benefit from the ubiquity of its format. Adding advertising capabilities not only provides potential opportunity to monetize Flash’s enormous footprint, but potentially defends the platform long-term against commoditization and eventual replacement by HTML5.
Although this all makes sense in principle, Adobe may initially face some challenges attempting to get publishers and advertisers to adopt its new integrated solution. The addition of Auditude to its Adobe Marketing suite would give premium publishers a stack that contains video ad serving, analytics and data management, but this is unlikely going to generate the “1 +1 = 3″ math that Adobe is going for. Most publishers already have analytics tools and DMPs, and for those looking to expand into video, it’s far simpler and more cost-effective to find a stand-alone video solution, rather than tear everything down and overhaul the entire system with an integrated suite.
While they may be newcomers to this space, Adobe’s reputable brand and integrated tools, combined with Auditude’s technology, is sure to push the boundaries of what online video can be. While they will have an uphill battle at the start, it’s very likely that the trusted Adobe name will encourage more premium publishers and advertisers to explore the segment. If anything, this will lead to increased competition, which will surely drive increased innovation in the space.
Leave a Comment
- Big-Budget TV Ads Alone Aren’t Enough: Use Programmatic to Tell Your Brand Story
- 5 Keys to Capitalizing on the Mobile Gaming Phenomenon
- The Programmatic Future: Automation Poised to Dominate Video Ad Buying
- You Have My Data, Now Stop Retargeting Me!
- The Top 5 New Video Ads: Snickers, Pepsi, HUVr, Hugo Boss
- Fiverr® Updates iPhone App: Puts Over 3 Million Gigs® in the Palm of Your Hand March 12th 2014 NEW YORK, March 12, 2014 — Fiverr®, the world’s largest [...] more »
- BroadbandTV CEO is Named Young Global Leader by the World Economic Forum March 11th 2014 VANCOUVER, March 11, 2014 (ADOTAS) – Shahrzad Rafati, founder and CEO [...] more »
- Intent Media Hires Noted Travel Industry Exec Noreen Henry as VP of Business Development March 11th 2014 NEW YORK, March 11, 2014 (ADOTAS) — Intent Media, an [...] more »
- Ampush Appoints Rick Cotton as Chief Revenue Officer March 11th 2014 SAN FRANCISCO, March 11, 2014 (ADOTAS) – Ampush, a leading [...] more »
- Facebook Exchange Partner Perfect Audience Taps into Google Merchant Accounts for Retargeting March 11th 2014 ADOTAS – You may already know that Facebook Exchange (FBX) [...] more »
- Covario Names Jeff MacGurn Senior Vice President March 11th 2014 SAN DIEGO, March 11, 2014 (ADOTAS) -– Covario, a leading independent [...] more »
- Kitara Media Appoints Chris Magdelinskas as Chief Technology Officer March 11th 2014 JERSEY CITY, March 11, 2014 (ADOTAS) — Kitara Media Corp. [...] more »
- Big-Budget TV Ads Alone Aren’t Enough: Use Programmatic to Tell Your Brand Story March 12th 2014
- 5 Keys to Capitalizing on the Mobile Gaming Phenomenon March 11th 2014
- The Programmatic Future: Automation Poised to Dominate Video Ad Buying March 10th 2014
- You Have My Data, Now Stop Retargeting Me! March 7th 2014
- The Top 5 New Video Ads: Snickers, Pepsi, HUVr, Hugo Boss March 7th 2014
- Marketing Operations Manager - Healthcare
- Director Digital Engagements
- Website Designer
- Online Account Manager
- Online Media Buyer
- Adknowledge Acquires Video Syndicator Giant Media - Responsivemts | Responsivemts: [...] Fans Among Farmers, Filmmakers#Selfie Music Video Dominates With Help From Social Media InfluencersAdknowledge Acquires
- Today’s Burning Question: Instagram’s $100 Million Ad Deal with Omnicom - Responsivemts | Responsivemts: [...] Tech Companies Must Improve EncryptionThe (Important) SXSW Panels You Missed, Explained by CartoonsToday’s Burning
- Bitly Adds New Leadership, Partners with Moz for Inbound Link Marketing Intelligence - Responsivemts | Responsivemts: [...] Live Video: Edward Snowden at SXSWSheryl Sandberg Teams Up With Beyonce to Ban
- Finding Your Brand Advocates, Are You Ready for Super Bowl Sunday? - Inside CXM: [...] Theresa Trevor, Adotas, offers 5 simple rules to motivate brand advocates: [...]