Ebuzzing and Teads merge, aim to become a global online video giant
What: Ebuzzing and Teads have merged into a company, through which they expect to generate US $100 million in sales in 2014. The newly created group plans to go public on Nasdaq in 2015.
Why it matters: The merger intends to create a global video advertising giant and gain a significant client base in the Americas. Its Outstream advertising product will be one of the major growth factors.
Ebuzzing, global provider of technology-driven video advertising solutions and Teads, a video ad management supply side platform (SSP) has merged to create the global video advertising group "Ebuzzing and Teads". Ebuzzing and Teads, is intended to become the new global leader in online advertising through video and expected to generate US $100 million turnover this year, and going public on the NASDAQ, New York in 2015.
The Ebuzzing and Teads group now covers a large percentage of the online video advertising field, and are thus well placed to deliver comprehensive and integrated solutions for advertisers and publishers.
Pierre Chappaz has been named the President and CEO of the group. Loic Soubeyrand ,will remain Teads´ CEO and Bertrand Quesada is becoming Ebuzzing CEO.Furthermore, Pascal Gauthier, former COO of Criteo and Anthony Rhind, former co-CEO of Havas Digital are joining Ebuzzing and Teads board. Teads' investors, Partech Ventures and Elaia Partners will also join the board.
The group has over 300 employees based across 10 countries (USA, UK, France, Germany, Italy, Spain, Switzerland, Luxembourg, Mexico and Korea), including an R&D team of more than one hundred engineers based in France. The group's turnover reached US $70 million in 2013, and is expected to exceed US $100 million in 2014 .
'Outstream' video advertising formats
With the gradual transition of advertising budgets from TV to online, video has become the fastest growing advertising sector.
In 2013, online video advertising spend reached US $5 billion, and is expected to exceed US $8 billion in 2015 .
However potential growth has been restricted due to a lack of quality video editorial content, monetizable by inStream video ads, where video advertising is played before a user is able to access video content.
With this in mind, three years ago both Ebuzzing and Teads simultaneously developed new video advertising formats called Outstream, a video advertising that sits outside of the video stream and instead is placed within any other type of content.
For example, the video content can now be placed between two paragraphs of an article, between two images of a slideshow or in a newsfeed of a social network.The merger of the two companies will reinforce their global leadership in the video advertising industry.
Teads, the archetypal video SSP programmatic platform
Teads creates and operates several private marketplaces for its publishers (called "VPX": Video Private Exchange) on which each publisher can manage the monetization of its video ad inventory in a programmatic or traditional way.
Already used by international media groups, such as Reuters, Teads is currently the only existing platform managing and optimizing both Instream and OutStream video ad inventory from a single interface.
Going public on the NASDAQ in 2015
The projected growth for 2014, which will boost Ebuzzing and Teads' combined turnover to over US $100 million, means the group is planning on going public on the NASDAQ in 2015. The partner banks will soon be selected for the purpose of this operation.
Pierre Chappaz, President and CEO of the Ebuzzing and Teads group, and Loïc Soubeyrand stated: "We respect each other immensely and the complementary nature of our business models.
This is the beginning of an incredible journey which will benefit our clients, teams and shareholders.