YuMe files for $65M IPO as video ad market continues to soar

Video ad network YuMe is going public. The startup filed for a $65 million initial public offering today. 

YuMe provides digital video advertising technology that pairs online videos with relevant audiences. It connects advertisers and video-content creators so videos appearing on mobile devices, computers, or connected televisions can include advertising revenue in their monetization plans. The software also collects data from every campaign and analyzes it so brands and publishers can target the right audiences and optimize their ad budgets.

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“We help our advertising customers overcome the complexities of delivering digital video advertising campaigns in a highly fragmented environment where dispersed audiences use a growing variety of Internet-connected devices to access thousands of online and mobile websites and applications,” the company said on the form.  “We believe our digital video-brand advertising solution exceeds the efficacy and enhances the reach of traditional television advertising.”

Eyeballs and advertising dollars are shifting away from television and toward online channels. This has presented issues for brand advertisers who struggle to target relevant consumers within the vast and diverse realm of the Internet audience and lack “unifying technologies” to accommodate the multitude of different devices, operating systems, technologies, and policies.

YuMe helps brand advertisers adapt to this shift and effectively capture audiences online. It reached over 257 monthly unique viewers during May 2013 and delivered over eight billion video advertising impressions in 2012, according to the S-1 fiing. Its customer base includes 64 of the top 100 U.S. advertisers. YuMe’s revenue was $116.7 million in 2012, which represented a 70 percent increase over 2011.

The video-ad market is forecasted to more than double to $9.06 billion in 2017 from $4.14 billion this year, according to researcher EMarketer Inc, and video ad network Tremor Video Inc went public earlier this year.

YuMe was founded in 2004 by Jayant Kadambi and Ayyappan Sankaran who realized early on that the online video sector would need a strong ad model. YuMe launched in 2007 and has raised $72.9 million to date from Accel Partners, BV Capital, DAG Ventures, Intel Capital, Khosla Ventures, Menlo Ventures, Samsung Venture, and Translink Capital.