No. of Recommendations: 4
Hi okapimoon,

Wow! They evaluate 500,000 ad slots per second. Any understanding of how that is done?

Lots and lots of gerbils ;-)

Here is what the 10K says about campaign execution. This starts on page 13.

Our powerful, real-time optimization and decisioning engine helps enhance brand advertising performance while at the same time focusing on brand safety.

Media Buying
Our platform automates impression buying and ad serving for campaigns. Based on budget and targeting parameters set in the planning module, our platform continually evaluates impressions across sources of inventory and dynamically bids for each impression. When an auction is won, the platform serves the ad to the publisher site to be displayed to the user. The entire process typically takes less than 0.25 seconds.

Decisioning and Optimizing
Our platform enables customers to purchase the “best” impression each time according to the audience targeting criteria established in the campaign planning phase. Each second, our platform evaluates as many as 500,000 ad impressions, determines which impressions would be desirable for our customers, based on their targeting criteria, and bids accordingly.

In addition to the decisions made on each bid for an ad impression, our platform continually evaluates which of the criteria are delivering the best performance and then automatically makes adjustments to the bidding strategy to help maximize overall campaign performance.

Fraudulent Placements and Brand Safety
Using site, page and player safety technology, our platform is designed to screen and block sites with objectionable content, in- banner auto-play ad placements and fraudulent bot-driven traffic, with the goal of ensuring that ad placements are consistent with campaign objectives. Our multi-layered approach for protecting brand equity includes manual site screening and categorizing of websites according to content quality, combined with technology that assesses page and placement level content.


As for large clients, they just announced Walmart signed on, and in the 10K they say "during 2015, advertising for 94 advertisers listed
on the 2014 AdAge Top 100 U.S. Brands was placed through our platform." In the latest call they also said:

We also had several exciting client wins in the quarter. We not always able to announce these publicly, but our new client wins included signing a top five global beverage brands, a top 10 global financial services company, and a top 10 technology company, who all chose TubeMogul as their preferred media buying software.

As far as the Google question goes, my knowledge is limited, but my sense is that TUBE is going after a different customer base. Google has traditionally focused on performance-based marketing: showing ads from companies looking to get clicks that turn into sales conversions. That's not at all what TubeMogul is doing: they've crafting their platform around brand advertisers, who are approaching their campaigns from a very different perspective and measure effectiveness using very different metrics.

TubeMogul is also independent and represents only buyers of ads. There is a huge problem right now in the industry with massive, rampant fraud. In fact, Facebook's acquisition LiveRail (a marketplace for video ads) has, for all intents and purposes, shut down because it was discovered that the fraud was completely out of control. Here's one article about it:

http://www.businessinsider.com/why-facebooks-liverail-change...

Two years ago, topics such as viewability (measuring whether an ad was actually seen by a real person and for how long) and ad fraud (the practice of deliberately serving ads that have no potential to ever be seen by a human user) were niche issues. Now they're major topics of conversation at the advertising industry's biggest events and among the CEOs and chief marketers at the top agencies, platforms, ad-tech vendors, and brands.

Ad fraud is predicted to cost brands $7.2 billion in wasted spend this year, according to the Association of National Advertisers.

"As we started to integrate our data, Facebook targeting, and reporting, we were able to do a lot of really interesting things on the viewability and fraud front to understand what the supply was like in the market," Boland said.

"That was when we learned that a lot of the video supply out there — in fact the vast majority of the video supply that was running through LiveRail — was not creating value, whether it was from a viewability [standpoint] or fraud, or other reasons. It was not quality supply, and that was part of our evolution to move away from that."

(If this sounds like a familiar story, it's because Facebook also confirmed this month that it was pulling the planned demand-side platform within Atlas because of the number of bots and bad-quality ads on the open Web.)


TubeMogul represents only buyers, so it avoids a lot of conflict of interests that exist in these ad networks. In Q1 they even rolled out a new program where their customers are not charged for any fraudulent traffic, and that's been very attractive to advertisers. From the last call:

we’ve been investing in protecting advertisers from multiple types of ad fraud, including safe traffic generated by computers or botnets for a long time. But as a matter of policy in Q1 for a Platform Direct clients, we said any fraudulent botnet traffic will be refunded and the refunds that that we made in the quarter were negligible.

Another potential differentiator with TubeMogul is that they're purpose-built for global campaigns, which is a lot more important to these large brand advertisers. Most of TUBE's revenue still comes english-speaking countries, but campaigns could be run from within the platform in 70 different countries as of the end of 2015.

At the end of the day, I think TubeMogul is aiming to build a sticky platform that serves as a one-stop-shop for all of these advertisers' needs: planning, executing, and measuring their campaigns across multiple media types (web, traditional tv, social media, etc.) in a simple, consistent, and efficient fashion that delivers measurable results.

Neil
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