DoubleVerify Boosts Q2 Revenue by Expanding Brand Safety to Retail Media, TikTok and Gaming

Most ad tech companies reported average or below-average quarterly earnings, and more than one pointed to the current macro economy.

But DoubleVerify is expanding its branded security technology into new areas, from retail media to gaming to Twitch, TikTok and Reddit. These new sources of revenue growth helped its stock rise 4% in after-hours trading on Wednesday afternoon. The company raised its guidance for the rest of the year to an expected 35% growth in total revenue.

DoubleVerify’s second-quarter revenue increased 43% year over year to $109.8 million.

CEO Mark Zagorski says the company’s growth is due both to the diversification of its revenue into new types of advertising and its market position in the verification space, which make DoubleVerify “largely indifferent to changes in ad spend and CPM volatility”.

Specifically, DoubleVerify divides its revenue lines into activation, metering, and supply side.

(DoubleVerify considers activation and metering as buy-side revenue, while supply-side revenue comes from the tools publishers use to verify their inventory.)

Growth in its activation business alone, which deals with brand safety products, is up 60% year-over-year to $60 million.

Specifically, DV attributes its activation growth to its two most successful tools: Custom Contextual, which increased revenue by more than 200%, and Authentic Brand Suitability (ABS), which grew its advertiser base by 20%, said CFO Nicola Allais.

By comparison, revenue attributed to the measure increased 23% and supply increased 49% year-over-year. Much of the growth on the supply side is due to DoubleVerify’s recent acquisition of OpenSlate, a video verification and workflow automation company that generated approximately $15 million in revenue for DV in the second trimester.

Specifically, Allais attributes the strong activation growth to three key markets: retail media, gaming and social media.

New markets

DoubleVerify works with major retail networks – including Walmart, Kroger’s, Target and Best Buy – and increased its focus on pre-auction visibility solutions in Q2, resulting in 160% year-on-year growth annual revenue of the company attributed to retail media networks.

“We continue to grow our retail media networks, which are quickly becoming the advertising venue of choice for results-driven brands,” Zagorski said, adding that retail media-driven growth for DoubleVerify spanned all three of its product lines. income.

DoubleVerify also announced a “significant expansion” in the gaming sector: a partnership with Twitch. It is currently testing a tool to identify brand-appropriate content in live streams, which is currently in beta.

The ad verification titan also made new moves on Reddit and TikTok in Q2, the former with an exclusive metrics verification partnership, and the latter with new safety and brand suitability tools. which increased its advertiser base by 42%.

future and destiny

DoubleVerify hinted at more mergers and acquisitions in the near future and interest in the attention economy.

“We ended the quarter with $224 million in cash, with no long-term debt,” Allais said. Falling valuations across the rest of the economy “offer opportunities to accelerate long-term growth through strategic investments – including mergers and acquisitions – that will advance our product and technology roadmap.”

Also, pay attention to attention.

Attention metrics are still somewhat elusive because they lack scale, but as DoubleVerify delves into the demands of performance marketers, it hears the rallying cries for attention metrics.

Its latest attention measurement product, DV Authentic Attention Snapshot, will launch later this month and will allow clients to track attention against benchmark KPIs in omnichannel campaigns. The product will include the ability to perform in-flight optimizations.

“Attention is quickly becoming a key metric,” Zagorski said, citing an eMarketer study in which 98% of marketers said deeper attention metrics would help improve campaign performance. and advertising results.

“Even though the dollars are small and the days are early, attention has incredible potential,” he said, making it an area of ​​focus as the brand safety mark grows. developed.

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