Foxtel brings programmatic video in house in deal with TubeMogul

Pay television leader Foxtel has confirmed that it will bring its programmatic digital video advertising operations in-house. The company is also looking to invest more of its branding dollars into digital video ads, and will launch branded video ad campaigns using programmatic software.

Foxtel is likely to be the first of many. Companies engaged heavily in the video advertising are looking to bring their programmatic branding functions in-house to have control over their data, and bring technology closer to their overall digital and branding strategy and execution.

The reason is simple: after years of simmering away in the background, video is starting to burn hot — especially given the saturation of smartphones in developed markets, more affordable broadband and the growing ubiquity of wifi in public spaces.

According to a recent study by Frost and Sullivan, for instance, the number of Australians aged 15 to 65 who watch video at least once a month on a smartphone has increased from 34 per cent in 2013 to 51 per cent in 2014, and on tablets from 29 per cent to 47 per cent.

The researchers found, not surprisingly, that as online video consumption grows, so does online video advertising. “Growth of online video advertising outperformed all other major online general advertising segments, including online display advertising. For the 12 months to June 2014, the online video advertising market grew by 60 per cent, accelerating over the growth of 55 per cent in the year prior. The online video advertising market is predicted to grow from $A198 million in 2014 to $A780 million in 2019, with growth rates tapering off as the market matures. Expenditure on mobile video ads has increased strongly over the past 12 months; a trend that’s expected to continue over the next few years.

Foxtel has selected TubeMogul as its programmatic platform, and the partnership is effective immediately.

Foxtel said it would debut the use of the software in the coming weeks, and the company will add to its already established programmatic digital media buying capability, which is internally managed at the company.

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(Image: Justin Robinson, Foxtel Director of Marketing Operations and Media. Image source: LinkedIn)

According to a company statement, the digital media team at Foxtel will focus on using TubeMogul’s video advertising platform to support brand, customer and acquisition marketing efforts. Justin Robinson, Director of Marketing Operations and Media, said “We are planning to shift more media spend to digital channels, and online video is a key part of that. Through TubeMogul, we gain unparalleled transparency in both delivery and pricing.

The Foxtel team will leverage TubeMogul’s full product suite for media buying including BrandPoint, a tool for accurately buying digital video on a target audience rating point (TARP) basis. Foxtel’s ability to bring its data, marketing and technology investments closer together was a key consideration,” said Robinson.

Foxtel’s digital media strategy has always been ahead of the curve,” said Sam Smith, TubeMogul Australia Managing director. “The way they harness the power of software, technology and data to amplify their strategy is groundbreaking.

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