By Alexandra Bruell
Advertising technology firm VideoAmp Inc. has raised $70 million, suggesting that investors still have confidence in the challenged category.
The funding comprises $50 million from the Raine Group LLC and $20 million from Ankona Capital. VideoAmp had previously raised $36 million from companies including Mediaocean and RTL Group since its launch nearly five years ago.
VideoAmp, which helps advertisers target and measure the impact of their ads across platforms such as TV and mobile, also named former Tribune Media Chief Executive Officer Peter Liguori a senior adviser and member of the board of directors. Erik Hodge, managing director and head of the Raine Group's Los Angeles office, is joining the board as well.
VideoAmp is among a handful of technology firms trying to help advertisers understand the impact of their campaigns on sales. Most media companies and advertisers do business around audience measurements broken down by age and gender. But marketers are increasingly looking for quick feedback on their ads' business results so they can quickly optimize their campaigns, said Ross McCray, co-founder and chief executive officer at VideoAmp.
The firm will use the new funding to hire more data and customer-service staffers to support the marketers, agencies and media companies that use its services, Mr. McCray said.
VideoAmp may consider acquisitions down the road, he said.
VideoAmp employs around 180 people and counts clients such as GroupM, Tyson Foods Inc., A+E Networks and Tubi. The company turned profitable at the end of 2018 and ended the year with $20 million in revenue, according to a person familiar with the matter.
Investors in recent years have chilled on the ad-tech sector as a number of firms struggled to compete with giants like Google and much of the technology used for ad targeting became commoditized.
More recently, there has been a new wave of interest in the category, leading some firms to seek exits or pursue growth. Last year DataXu hired a bank to explore a potential sale; AT&T Inc. completed its roughly $1.6 billion acquisition of ad-tech firm AppNexus; and MediaMath raised $225 million in funding.
"The current media environment has created an ever-increasing appetite among marketers and media owners for innovative video data and measurement solutions," Raine Group's Mr. Hodge said in a statement.
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