Adobe today announced it would acquire video advertising company TubeMogul in a deal valued at $540 million. Adobe said the transaction will allow brands and agencies to plan and buy video advertising across desktops, mobile, streaming devices and TVs inside of Adobe’s existing Adobe Marketing Cloud product.
“Adobe’s acquisition of TubeMogul will create the first end-to-end independent advertising and data management solution that spans TV and digital formats, simplifying what has been a complex and fragmented process for the world’s biggest brands,” Adobe said.
Through the acquisition, Adobe also gains access to TubeMogul customers like Adidas, BRP, Clorox and Diageo as well as agencies like AMP Agency, Audience Group, Bohemia and Cadreon. Adobe specifically noted that the companies share customers like Allstate, Johnson & Johnson, Kraft, Liberty Mutual, L’Oréal, Nickelodeon and Southwest Airlines.
Adobe pointed out that the acquisition specifically stems from the growth of online video and associated advertising. “Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs,” Brad Rencher, EVP and GM for Adobe’s digital marketing, said in a release. “With the acquisition of TubeMogul, Adobe will give customers a ‘one-stop shop’ for video advertising.”
“This will be the industry’s first independent end-to-end video advertising platform,” crowed TubeMogul CEO Brett Wilson in a message to the company’s partners and customers, according to a copy of the message obtained by Business Insider. “Current TubeMogul clients can envision a future where first-party data and measurement from Audience Manager and Adobe Analytics is available directly in TubeMogul’s platform — a combined data and buying dynamo that spans TV and digital formats.”
Adobe of course isn’t the only company investing in digital advertising, with the notion that the online video advertising space is bound to grow significantly. Verizon recently purchased AOL and is working to purchase Yahoo with these same goals in mind, for example.
Adobe’s acquisition of TubeMogul is the latest move by the company to bolster and strengthen its offerings in the video space. For example, Adobe recently put a shine on its Creative Cloud video production suite, showcasing a number of features such as a 3D rendering engine and HDR10 metadata support in a pre-show media presentation. The company also recently partnered with Comcast and CTAM to create what it is billing as a "universal" authentication platform.
Adobe expects its acquisition of TubeMogul to close next year.