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Mobile video use booms as programmatic matures

By Cezanne Huq

SpotXchange_logo-4clrSpotXchange, the leading video monetization platform for publishers, continued its rapid growth trajectory in 2015, with three new offices opened, 28% global headcount growth and an 800% increase in mobile video spend during 1H 2015.

“Brand advertisers are now wholeheartedly embracing mobile, which has traditionally been used for direct response goals, such as performance-based or cost-per-acquisition marketing”

As publishers use programmatic more proficiently, SpotXchange has seen a massive increase in premium inventory sold through automated trading, primarily through increased use of private marketplaces, which now comprises over 40% of the impressions managed on its platform. Compared to 1H 2014, private marketplace use has grown 112%.

The Denver-based company’s platform is able to house both programmatic (private and open marketplace) and direct sold campaigns in a one-stop solution for publishers, allowing full transparency into yield optimization across deal and video inventory types.

Product development undertaken to give publishers a holistic inventory management platform saw ad dollars spent on mobile video through SpotXchange’s platform grow 800% year on year in Q2/2015, according to Mike Shehan, CEO, SpotXchange.

“We are witnessing a stunning revolution in mobile video,” Shehan said. “Brand advertisers are now wholeheartedly embracing mobile, which has traditionally been used for direct response goals, such as performance-based or cost-per-acquisition marketing,” he explained.

“We expect to see mobile video CPMs grow significantly this year as advertisers embrace the medium for big-budget, brand-building video campaigns.”

Media spend managed through SpotXchange’s platform grew 67% year on year, with mobile continuing its steep rise, now accounting for over 19% of total spend, up from 4% a year ago. For Q2/2015, this represents 800% growth in mobile video ad spend year on year, and 69% growth quarter on quarter.

Since the leading European entertainment network, RTL Group, made a substantial investment in SpotXchange late last year, the business has expanded into programmatic TV, and launched new platform features including campaign forecasting, pacing alerts, advertiser-level transparency into programmatic direct transactions, and improved app monetization capabilities, as well as enhanced fraud prevention safeguards.

“SpotXchange has forged ahead with product developments to maintain its position as the most robust video monetization platform for publishers,” Shehan added.

“Our platform allows the publisher to control the transaction layer, rather than relying on third-party platforms for their monetization. Publishers are responding by using programmatic to not just execute open marketplace buys, but to create controlled private marketplace environments and evaluate direct sold efforts in a single platform for full visibility over inventory yield.”

SpotXchange opened offices in Amsterdam, Hamburg and Singapore this year and added 54 to the company headcount. It signed 140 new platform clients, including the likes of E.W. Scripps, Meredith Local, TV Insider, The Enthusiast Network, Digital Trends and Frequency, as well as a host of household names that are expanding the role programmatic plays in their sales strategy.

The company has also become part of RTL Digital Hub, a collaboration designed to leverage the synergies of different players in the video ecosystem under RTL Group’s umbrella.

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