Adobe will further its efforts to become a one-stop shop for marketers’ technology needs with the acquisition of video ad buying software company TubeMogul for about $540 million. “Video is the fastest-growing segment in advertising, and it isn’t one we address today. Adobe agreed to purchase TubeMogul for $14 a share in cash, which is double the company’s 2014 IPO price of $7. Adobe, which has a market value of more than $50 billion, isn’t the only company seeking to build a one-stop-shop for marketers’ software needs. “We sell software platforms; we’re not in the media business,” Mr. Rencher said. We partner with brands and advertisers to help them build websites all the way through to buying media and advertising. According to Adobe, TubeMogul could also help it capitalize on the growth of automated TV ad buying. But some digital media observers believe most TV advertising will one day be purchased using automated software. Many content creators and marketers also use Adobe’s creative tools and editing software to create video content. With the marketing cloud we’re now helping not only create video experiences, but also helping marketers deliver that content to all devices,” Mr. Rencher said.
Adobe will further its
efforts to become a one-stop shop for marketers’ technology needs
with the acquisition of video ad buying software company TubeMogul for about $540
million.
Adobe has acquired multiple marketing technology and data
companies in recent years, but has lacked the ability to buy video
advertising in an automated fashion. The company hopes TubeMogul
will help satisfy its clients’ demand on that front, and help it
capitalize on a rapidly growing sector of the industry.
“Video is the fastest-growing segment in advertising, and it
isn’t one we address today. This extends our capabilities,” said
Brad Rencher, executive vice president and general manager of
digital marketing at Adobe.
TubeMogul’s technology is designed to help marketers purchase
video ads from a range of sources and to display them across
desktop and mobile devices, as well as streaming devices and
TVs.
Adobe agreed to purchase TubeMogul for $14 a share in cash,
which is double the company’s
2014 IPO price of $7.
Since the IPO, TubeMogul’s shares have been volatile along with
much of the ad tech industry. After trading over $23 less than two
years ago, the shares closed Wednesday at $7.67, meaning the
takeover price represented an 83% premium for shareholders.
The plan is to stitch TubeMogul together with the other data
management and analytics tools in its Adobe Marketing Cloud
division to give marketers a range of tools that work together
seamlessly.
“We believe the marketing and advertising ecosystem…
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