As you know, we’ve been trying to pin down which companies will win in the online video boom. Phoenix-based venture capitalist and entrepreneur Howard Lindzon thinks he’s found one: TubeMogul. Howard has run a hedge fund for 11 years and is a partner in Biltmore Ventures. Recently, he founded Wallstrip, which was purchased by CBS in June. He blogs at howardlindzon.com.
Henry Blodget recently noted that I had “waxed enthusiastically” about my latest video investment, TubeMogul. Now he wants me to elaborate on why I invested in the company.
You know me – I’m all about riding the trends. The space that TubeMogul is in, web video distribution and the analytics to measure audiences, is going to be so hot it hurts. With Wallstrip, we won through a superior distribution strategy getting the show out to where the audience is rather than hope the audience comes to you. Most video creators are taking up this strategy, but getting the videos out there is a huge time sink, and measuring your audience across many sites is a huge pain…
TubeMogul addresses both of these issues: Using TubeMogul, you can upload once, view everywhere–and then have a detailed record of viewers and streams across multiple distribution points. TubeMogul should succeed regardless of which content creators and video aggregators survive.
The video market, moreover, is only just ramping up. Web video is white hot, yet advertisers haven’t yet followed audience behaviour with dollars (over 10% of video is viewed online, but less than 1% of video advertising is done through the online medium). Why not? They’re not sure how to measure video audiences across sites.
In the TV world, they’re used to buying shows on a single network. On the internet, marketing dollars are spent on keywords and content at destinations. But the same videos span multiple destinations. No measurement? Again…enter TubeMogul.
This company is out in front, solving a big problem and amassing tons of data that advertisers will be drooling over as they try to figure out how to move their dollars to web video. That’s why I invested in it.