First fruits from TubeMogul buy as Adobe launches targeted ad cloud

Adobe accelerated its cloud push this week with the launch of a new personalized software affair for the advertising industry, citing that just 26% of Americans believe the TV ads they see are relevant to them, according to its own Adobe Digital Insights report.

The Adobe Advertising Cloud TV system automates the buying of TV ads across multiple formats. It covers live linear TV, addressable TV, connected TV, VoD and OTT – claiming to reach 95% of US households.

The basis of the technology comes from TubeMogul, the programmatic technology vendor Adobe recently bought for a steal, combining its demand side ad platform with the Adobe Marketing Cloud to provide customers with an end-to-end independent advertising and data analytics platform across multiple digital formats.

What TubeMogul does is offer a two-tier platform, one you use yourself and one you use through in-house TubeMogul staff, which allow you to plan advertising across TV, laptops, social media and OTT video platforms, in many cases comparing their likely performance before you buy, and then testing how well it did for you after.

TubeMogul’s technology has been integrated with the Adobe Analytics Cloud to enable brands to better use their own data from ad and marketing campaigns to target audiences more efficiently. This includes access to additional datasets from pay TV providers and TV manufacturers and allows marketers to plan and buy TV ads against audiences that it says have already demonstrated intent through online searches.

The shift from PC and laptop internet advertising to a multi-platform world is demonstrated most suitably by TubeMogul’s operations, which is experiencing non-desktop pre-roll spend growing at 130% annually, making up 49% of ad spend on its platform, with mobile advertising growing at 65% a quarter, prior to its takeover by Adobe.

TubeMogul takes a somewhat different approach to tracking down audiences compared to others in the personalized ad business, as it has employed the experience of ex-CIA contractor John Trenkle as its Chief Scientist. Trenkle has been tasked with applying the methodologies picked up from national security intelligence to develop machine learning algorithms for targeted ads. The idea is like any other in machine learning, to try to mimic and predict how people behave – evaluating a variety of options at the viewer level and assessing KPIs such as viewability and conversions.

However, while marketers are usually focused on getting the most number of impressions and click-throughs possible, TubeMogul says its motto is that minimum impressions are a better bet to ensure higher efficiency with a smaller budget. It claims that its new algorithms can save 25 cents a dollar for the ad budget that customers put through the TubeMogul-Adobe system.

Brett Wilson, VP and GM, Adobe Advertising Cloud and ex-CEO of TubeMogul, said, “Adobe Advertising Cloud TV is knocking down the barriers between digital marketing and traditional TV ad buying to enable marketers to have a single strategy that works. Adobe Advertising Cloud TV builds on an already industry-leading product to enable new firsts, like the ability to use a brand’s data to better target audiences regardless of which device a viewer happens to be watching on.”

The press release also quotes the EVP of video investments at Dentsu Aegis Network, Mike Law, which last month acquired Australian data company Accordant, a specialist in most major technology stacks with a primary focus on Adobe Marketing Cloud.

Law said, “Programmatic TV has been a critical component for us as we work with clients to apply more data to increase the effectiveness of traditional TV buys. The launch of Adobe Advertising Cloud TV enhances the back-end data access and tool set we can use to improve efficiencies and deliver targeted audiences at scale.”