AOL, Google Join $17 Million Bet on Mobile Video Ads with Vungle

By Steve Anderson February 10, 2014

Video advertising is an increasing part of our lives as Internet users. While some may begrudge this use of bandwidth to enrich others—particularly those users who come under bandwidth caps—there's little denying that these new ads help run the Internet as we know it. Recent news of new investment into the mobile video advertising startup known as Vungle, meanwhile, are showing that this new technology isn't going away any time soon, but rather just getting started.

The reports direct from Vungle note that the company landed $17 million in a Series B funding effort, and featured both Google Ventures and AOL Ventures as stakeholders in a round led by Thomvest Ventures, joined in by several other investors as well. That's quite a bit of cash going in, and given what Vungle does, it may well prove a good investment in the long run.

Vungle has a series of tools for app developers by which said developers can add mobile video advertising to released apps, which in turn gives Vungle a platform from which to exhibit said ads. It's already a pretty robust platform; Vungle ads are viewed by, on average, 100 million people every month. That's valuable by any stretch, but it only gets better thanks to recent moves at Vungle to create a mobile ad exchange system to more easily allow advertisers to purchase ads on a real-time bidding system. The investment will allow Vungle, at last report, to bring in around 100 extra employees to augment its capability to deliver advertising in apps.

There is, of course, a measure of competition in this market. For instance, Tremor Video deals in mobile apps in its video ad exchange, and InMobi's exchange offers in-app video listings. But Vungle means to make its competitive prospect in an exclusive focus on in-app mobile video, allowing it to not only better understand the market that it serves with that exclusiveness, but also make the best presentation to potential advertisers with that understanding.

Andrea Sharfin, the vice-president of marketing for Vungle, laid out many of the challenges that such understanding will hopefully help surmount. Among these challenges include things like device fragmentation—just look at the sheer number of devices running Android in the field—as well as connection speed, as noted previously. How can one serve up video-based advertising in a fashion that doesn't hamper performance or shatter a user's bandwidth limits? After all, there's no surer way to endear a customer to not buying a product or service than the discovery that the advertisement for same pushed the user over a bandwidth cap for the month.

But by like token, the possibilities associated with in-app mobile video advertising are too lush to pass up. Given the increase in mobile devices—not to mention the growth of machine to machine communications known collectively as the “Internet of Things”--the number of users is on the rise as well. Advertisers inevitably go where the people are; this is simply the point of advertising in the first place, to reach potential customers of goods and services. App developers, meanwhile, are eager for a means that allows same to continue programming apps yet do things like eat and live indoors, and advertising can be quite a help on that front.

Vungle may well ultimately prove a good thing for the app system as we know it, and with Google and AOL involved in the fray, could give us many more new apps—and many more new video ads—to go along with it.




Edited by Cassandra Tucker

Contributing TechZone360 Writer

SHARE THIS ARTICLE
Related Articles

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More

Satellite Imaging - Petabytes of Developer, Business Opportunities

By: Doug Mohney    4/11/2018

Hollywood has programmed society into believing satellite imaging as a magic, all-seeing tool, but the real trick is in analysis. Numerous firms are f…

Read More