Video ad tech company VideoAmp announced today that it has raised $70 million in a new funding round led by The Raine Group and joined by Ankona Capital. This brings total investment in the company up to around $106 million, with Mediaocean and RTL Group among the previous investors. VideoAmp, which matches marketers’ first party sales and conversion data with ad exposure data to help measure and optimise campaigns, says the funding will be used to expand its customer success and data science teams.
The funding is impressive at a time when investment in ad tech has somewhat slowed down, but The Raine Group’s managing director Erik Hodge said he sees a lot of potential in VideoAmp’s model. “The current media environment has created an ever increasing appetite among marketers and media owners for innovative video data and measurement solutions,” he said in a statement. “Of the emerging companies in the space, VideoAmp stands out for its product and technology team – led by an extremely talented and dedicated entrepreneur, Ross McCray. We are excited to back both Ross and VideoAmp on the company’s next stage of rapid growth.” This confidence is likely supported by VideoAmp’s recent performance, with the company claiming to have seen net revenue growth of over 700 percent over the past two years.
There has been increased interest in measuring the sales impact of TV campaigns from the buy side recently. This has been driven in part by direct-to-consumer brands, which are increasingly turning to TV advertising once they’ve maxed out the reach they can find on digital, but which still want to be able to measure the sales impact of their campaigns. VideoAmp’s sales pitch is likely to appeal to those sorts of brands.
“With more than $35 billion in TV, OTT and digital video advertising dollars not reaching their desired customer targets each year, the entire industry needs to evolve,” said McCray. “By optimising marketing investment to sales versus eyeballs, everyone wins. Marketers will generate more sales from their advertising dollars, media owners will better monetise their audiences, and consumers will enjoy premium video content with more relevant and fewer repetitive ads.”
“We are thrilled to complete this round of financing and to have The Raine Group and Ankona Capital as partners, which will allow us to rapidly expand our footprint as the leading independent platform that the industry needs right now,” he continued.
VideoAmp also announced that Hodge will join the board of directors alongside Peter Liguori, most recently the president and CEO of Tribune Media. Liguori will also take on a role as senior advisor at the company.