Interactive TV News Round-Up (IV): Vevo, Videoplaza, Innovid
--CEO Caraeff: Vevo Generated $150 Million in Revenue in 2011, Is Profitable
--Videoplaza Raises $12 Million to Continue Expansion into Connected-TV and Mobile-TV Advertising
--Videoplaza Unveils New Interactive Video Ad Formats, Partners with Innovid for Interactive Video Ads
Due to the large volume of news generated by the recent 2012 International Consumer Electronics Show (CES) and other factors, we are covering stories in this issue in round-up/summary format. We anticipate that it will take us several more days to process all the news from the show: so if your company has sent us a press release or briefed us on an announcement, and you don't yet see your news covered in this issue, please bear with us.
- At All Things D's Dive into Media conference, Tuesday, Rio Caraeff, CEO of online music video service, Vevo (note: the service--which is currently hosted by YouTube--is backed by Abu Dhabi Media, Sony Music Entertainment and Universal Music Group), stated that the service generated $150 million last year and is profitable. He also predicted that it will generated $1 billion in annual revenue in "a short period of time." TheWrap's Lucas Shaw has more.
- London-based Videoplaza, which offers what it describes as a "global sell-side ad-management platform" for online video and connected TV, announced Wednesday that it has raised $12 million in a Series-B funding round that was led by Innovacom and Qualcomm Ventures and that also saw the participation of existing investors, Creandum and Northzone. "The funding is to further accelerate Videoplaza's aggressive global expansion and to ensure their continued product leadership as video advertising inventory rapidly expands to new devices and platforms," the company states in its press materials. "Following a strong 2011, Videoplaza has grown its international client base and delivered 5x greater ad-serving volumes in the last year. The company has opened new offices in Madrid, Berlin and Singapore, and serves a client base across 17 markets worldwide. Traditionally the TV advertising market has represented a large opportunity--with a value today of around $160 billion. As consumption evolves from broadcast to IP-delivered content, publishers and broadcasters must gear up commercially and technologically to take advantage of this spend as it shifts onto new channels...The new IP-delivered TV represents a range of fantastic new opportunities for media owners to increase distribution, reach and revenues. However it also presents a real set of challenges, including device fragmentation, and developing monetization policies across multiple platforms. Media owners need a clear strategy and a technical infrastructure to support them as they implement a device-agnostic approach...Videoplaza has rapidly evolved from what was initially an online video business. The growth of connected devices means video is now delivered everywhere. By 2020 there will be around 10 billion connected mobile devices and media owners need to monetize their content efficiently, regardless of where it is consumed. Videoplaza's technology platform today delivers advertising on all leading devices and services including Flash, Silverlight, HTML5, iOS devices, Android, Sony PlayStation, Samsung Smart TV's, and closed IPTV environments, etc. By 2013, Videoplaza expects more than half of its traffic to come from non-PC devices. Q4 of 2011 alone, 8% of the company's traffic was generated from non-PC devices." Said Innovacom partner, Bruno Dizengremel: "With the number of connected devices booming, the new IP-delivered TV is clearly one of the most disruptive markets right now. Not only have Videoplaza managed to sign up a large and high-profile client base, their technology is at the heart of the monetization strategy for these broadcasters and premium publishers. Our investment in Videoplaza reflects the importance we place upon developing revenue-generating opportunities across the new TV. Technology platforms will be increasingly important achieving this."
In other Videoplaza news: In December, the company unveiled two new interactive advertising formats, VP Takeover and VP Ad Selector, and announced the launch of its "Videoplaza Format Family." "These new formats address the growing demand for premium ad formats that go beyond standard pre-roll and overlay offerings," the company states in its press materials. "The company has also established a strategic partnership with ad format specialist Innovid, to bring a new layer of interactive ad formats to Videoplaza's Partner Format offering. The Videoplaza Format Family, including VP Standard Formats, VP Premium Formats, VP Custom Formats and Format Partners, is designed to cover all aspects of publishers' ad format needs and help maximize revenue opportunities. Today, the majority of advertising spend lies with trusted formats such as pre-rolls, overlays or companion ads. However interactive formats are becoming increasingly compelling to publishers as they need to differentiate in an ever more developed and competitive market. The Videoplaza Format Family contains: 1) VP Standard Formats include pre-rolls, mid-rolls, post-rolls, overlays and companion banners. 2) VP Premium Formats create an interactive and engaging experience for the viewer. The VP Takeover is similar to a traditional TV spot in that it takes over the full screen when the ad is showing, while VP Ad Selector allows a viewer the option to select which advert they want to watch, with a range of 2-6 different adverts to choose from. Both formats can generate a higher yield and provide a premium position for the advertiser. 3) VP Custom Formats is a service enabling publishers to offer and serve unique ad formats without impacting their high-priority internal development projects. 4) Format Partners provide Videoplaza clients with the flexibility to work with best-of-breed ad format specialists such as Innovid...The Videoplaza Format Family complies with key video advertising industry standards including Video Ad Serving Template (VAST) and Video Player-Ad Interface Definition (VPAID), to ensure seamless integration between different ad-serving technologies and video players. Support for these standards keeps clients' options open, enabling them to work with third parties and avoid lock-in to proprietary technology...Today interactive formats offer significantly higher engagement levels than traditional pre-roll clickthrough rates, signifying a shift in the way customers engage with video advertising in the new IP-delivered TV world. Innovid's interactive inRoll for example delivers an engagement rate of 2.25%, compared to a clickthrough rate of 0.61% for a normal pre-roll, delivering an uplift of 368% in engagement." Said Innovid CEO, Zvika Netter: "Working with the world's top brands, we're noticing a definite shift in the way that online video is perceived. It's no longer seen so much as a way to achieve reach and build awareness, but to create a much more compelling and engaging brand experience for the target audience. Our strategic partnership with Videoplaza will help us to reach even more publishers and allow our users to be even more effective in adding interactivity into the video advertising mix. We are very excited about growing the immersive video opportunity together."