TubeMogul co-founder Brett Wilson
"A combined Adobe and TubeMogul is uniquely aligned with advertisers," said TubeMogul co-founder Brett Wilson, show here during a company conference in September.

Adobe plans to acquire TubeMogul for $540 million — a move that will bring an established video advertising platform to the Adobe Marketing Cloud.

San Jose, Calif.-based Adobe already enables video content creation through its Premiere Pro CC in its Adobe Creative Cloud and Primetime solutions. The acquisition of TubeMogul will help the company capture the shift to online video, Adobe officials said.

Emeryville, Calif.-based TubeMogul offers advertisers a demand-side platform (DSP) to plan, buy and measure video ads using an automated (programmatic) system. Its solutions range from digital video advertising in multiple formats to a programmatic TV buying solution (PTV), which extends many of the benefits digital buying offers — like targeting and reporting insights — to television advertising.

'Uniquely Aligned With Advertisers'

In a message to TubeMogul clients and partners today, TubeMogul co-founder and CEO Brett Wilson said Adobe and TubeMogul will provide a unified advertising and data management solution that enables brands to precisely identify the right segments and plan, execute and measure paid media across any device. 

Wilson said the acquisition deepens TubeMogul's commitment to independence and its buy-side, media-agnostic approach. 

"A combined Adobe and TubeMogul is uniquely aligned with advertisers. Once integrated, this will enable brands and agencies to plan, buy, measure and optimize their global video advertising with a neutral, independent partner that doesn’t have direct ownership of media or content. Our combined incentive is to arm marketers with insights on what’s working — and act on it," he said.

'One-Stop' Video Shopping

“Video consumption is exploding across every device and brands are following those eyeballs,” said Brad Rencher, executive vice president and general manager for digital marketing at Adobe

Adobe said integration of TubeMogul into Adobe Marketing Cloud extends its expertise in search, display and social ad planning, buying and delivery through Adobe Media Optimizer (DSP) to video advertising, a market MagnaGlobal expects to drive $196 billion in ad spend this year.

"Combined with our DMP (Adobe Audience Manager) and Adobe Analytics, we expect to create the first, independent advertising and data management platform for delivering and measuring video ads across connected devices and TVs," Adobe noted in a statement.

The acquisition of TubeMogul gives Adobe customers a ‘one-stop shop’ for video advertising, he added, "providing even more strategic value for our Adobe Marketing Cloud customers.”

TubeMogul: A Forrester Leader

Forrester named TubeMogul a leader in its Wave evaluation of video advertising demand side platforms last December. “Ad agencies and marketers who want to directly manage their programmatic video buying will find the self-serve platform compelling,” the report said. 

Customers gave the company strong ratings for data sourcing and management abilities, fraud prevention and ad delivery controls. TubeMogul solutions are used by more than 700 customers worldwide.

About TubeMogul

Wilson and John Hughes founded TubeMogul while they were MBA students at the University of California's Haas School of Business. The TubeMogul team won the Haas Business Plan Competition in 2007, which provided seed money to develop and launch of the product. 

The firm grew from 31 employees in 2010 to more than 650 today at its headquarters in Emeryville and sales offices in Sydney, Paris, London, Tokyo, Toronto, Shanghai, Sao Paulo, Kiev, Singapore and Montreal. 

TubeMogul grew as major brands shifted more of their TV advertising spending to the digital video market.

In 2014, TubeMogul launched a successful IPO. In a filing today with the US Securities and Exchange Commission, Wilson said he and his co-founder have enjoyed nearly ten years of innovation and “firsts."

"It started with the first demand-side platform for video advertising. From there, we notched firsts in: total site and economic transparency, programmatic direct buying, integrated brand surveys, GRP-based buying, programmatic TV (PTV), cross-screen planning and free placebo lift testing," he noted. 

TubeMogul also "made the industry better" by aligning itself with marketers. "We were the first to expose “fake pre-roll” and talk publicly about video ad fraud. We created a program to automatically refund platform clients for traffic identified as fraudulent. We open-sourced our video viewability technology at a time when it could have been a competitive advantage. Finally, we’ve always stood up for transparency and aligned incentives even if that mean poking some bears along the way," he wrote.

It also made culture and people its "ultimate competitive advantage," Wilson added.

Adobe expects to transaction to close early next year. Wilson will continue to lead the TubeMogul team as part of Adobe’s Digital Marketing business.