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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 2 -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

ebuzzing nuevoWith 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

Ebuzzing -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.

What: There’s an opportunity for online video to drive Hispanic media, as, on average, Hispanics watch more online videos compared to the U.S. consumer. Cisco forecasts that by 2016 two-thirds of mobile traffic will be video viewing, and approximately 70% of advertising spending targeting Hispanics is spent in television.
Why it matters: There’s such high growth potential in online video – they’re the highest CPM in digital advertising – and Facebook seeks between US $1-2.4 million a day for its in-feed video ad feature. For online video to become a revenue driver for Hispanic media, the content should not be recycled and repurposed – rather, the content needs to be creative in its own way.

The strong growth of online video usage and advertising has interesting implications for the Hispanic market. On average, each U.S. Hispanic person watched 1,176.2 minutes (over 19 hours) of online video in March of this year, according to ComScore data. As importantly, Hispanics watch more online videos per viewer than the average U.S. consumer (270 per month vs. 243 for the U.S. consumer). Mobile communications, so pervasive among Hispanics, are also being driven by video consumption. In fact, Cisco forecasts that by 2016 two-thirds of mobile traffic will be video viewing. Online video offers digital extensions of Hispanic radio, print media and pure play digital properties a chance to level the playing field in the traditionally broadcast advertising oriented Hispanic market. Approximately 70% of advertising expenditures targeting Hispanics goes into TV.

Online Video Advertising Offers Non TV Media a Chance in the Broadcast TV Oriented Hispanic Ad Market.

Online Video CPMs (cost per thousand viewers) are the highest in digital advertising, usually three to four times as high as display advertising CPM’s. This explains why Facebook is seeking between US $1 million and US $2.4 million a day for its new in-feed video ad feature. Because of the high growth prospects of online video advertising, a whole new ecosystem of video advertising placement firms, which also provide comprehensive audience data insights and RTB (Real-Time Bidding) and video content producers, has emerged. It includes companies such as Vevo, Hulu, Google’s YouTube, Machinima, Videology, TubeMogul and Adap.tv.

For online video really to become a revenue driver for Hispanic media properties it is crucial that it does not just become a way to repurpose broadcast content. The key is to invest in creative that is native to the digital medium. “As clients are not investing in creative, but just repurposing video, I believe there is a lost opportunity to make better ads, to connect better with the audience and tell better stories as we are not limited to smaller spots,” says Xavier Mantilla, Partner and Client Manager at UM in Miami.

We Need to Invest in This and Not Just Repurpose Videos.

According to Mantilla, while online video may be a media buy, at heart, it is a creative piece. If media agencies got more together with creative agencies, these would be much more successful. He adds that, “when we look at video campaigns that have had higher click-through rates we realize that the creative played a very big role, as well as where it was running, so this fusion of art and science needs to grow. The next big opportunity is to generate localized video advertising to speak to an audience from its natural point of view.” The local nature of newspapers and radio can make them a particularly good fit for a new wave of localized online video ads. But as Mantilla concludes, “We need to invest in this and not just repurpose videos.”

 

According to AllthingsD Maker Studios, one of the biggest YouTube networks, is buying Blip, a video maker and distributor.

Maker Studios will pay for Blip with stock and cash, adds AllthingsD. The Online video industry is also growing in Latin America.

Maker has raised $44 million to date, including a $36 million round led by Time Warner last year. Blip had raised a reported $24 million since 2006.

This agreement gives  Maker a home outside of YouTube for its content. Maker commands billions of views a month, and represents YouTube stars like Felix “PewDiePie” Kjellberg.

In addition to a destination outside of YouTube, the acquisition will give Maker a proprietary video player it can put to use. Just as important, it will help the company bolster its sales efforts, as long as Blip’s sales team stays on board.

AllthingsD also says that Blip´s CEO Kelly Day is leaving the company.

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