Ad tech startup VideoAmp loves that it’s starting from scratch.
The Santa Monica company has launched with $2.2 million in funding to offer brands a one-stop shop for their campaigns. Anthem Venture Partners, Simon Equity Partners, Third Wave Capital, Wavemaker Partners and ZenShin Capital participated in the round.
Co-founder and Chief Executive Ross McCray said his startup’s tech will let brands buy, optimize and measure their video ads within one platform. VideoAmp said it can use a brand’s Nielsen cross-platform campaign ratings, which measure the number of people who watch an ad on television, online or both, to increase its reach while decreasing costs by up to 30 percent.
“We’re focused,” McCray said. “In the last 12 months, everyone’s positions have shifted to this multiscreen approach.”
But he questioned whether long established ad firms could transition quickly enough to meet brands’ digital needs.
Other agencies have grown internally to create multiplatform divisions, but McCray said VideoAmp is a fresh entry to the ad space that’s already using the latest tech. VideoAmp relies on Apache Spark, a data-processing framework that can run large-scale data analytics apps at a much faster rate than that of current models.
That gives VideoAmp a major advantage, according to McCray. Bigger ad tech firms, he said, have yet to upgrade their platforms to Spark.
“It’ll take one or two years to move their business,” he said.
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