TubeMogul Revenues Will Increase 5% Because Of This Facebook Announcement

TubeMogul Inc TUBE made an exciting announcement Friday, when the digital branding enterprise software company shared that it has become a Facebook Inc FB marketing partner.

The news means TubeMogul clients across the world will now be able to utilize the partnership as an advertising platform. SunTrust Robinson Humphrey elaborated, “This means TUBE clients globally (advertisers) can now purchase video ads within Facebook News Feed and Instagram on mobile and desktop alongside other brand advertising buys across digital video, programmatic TV, and digital display.”

Previous to this marketing partner status, TubeMogul was “in beta” with the social media giant.

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Why It Matters

SunTrust emphasized three key benefits to this move.

1. Total Inventory And Total Tier-1 Inventory Likely To Jump “From a spend-per-existing-client standpoint […] we estimate that access to video inventory on Facebook (FB, $114.70, Buy) and Instagram adds ~2 percent to TUBE total inventory and ~8 percent to TUBE total tier-1 inventory. As a revenue proxy, taking the mid-point, we estimate video buying on Facebook + Instagram would drie a ~5 percent lift in revenue today if it were fully rolled out and mature with clients.”

2. Partnership Makes TubeMogul The Only Video-Specialist In The Program “From a new client acquisition standpoint we note that TUBE is now the only video-specialist DSP in the Facebook Marketing Partners program at current, which offers a nice selling point of differentiation.”

3. The Fruition Of The Move Validates SunTrust’s Initiation Of TubeMogul “Gaining access to Facebook and Instagram video inventory was one of the page 1 catalysts in our recent initiation of TUBE back in December.”