Dec. 5 (Bloomberg) -- TubeMogul Inc., a maker of software for digital marketing, is planning an initial public offering in the U.S. next year, people with knowledge of the matter said.
The company is working with Bank of America Corp. and Citigroup Inc. on the IPO, said the people, who asked not to be named discussing private information.
TubeMogul’s software helps companies buy space for video advertisements on the Internet. Fueled by faster Web connections, digital video-ad spending will more than double to more than $9 billion in the next four years, from $4.14 billion this year, according to researcher EMarketer Inc.
TubeMogul’s clients, including Lenovo Group Ltd. and Chrysler Group LLC, have spent more than $100 million on its platform in 2013, the company said. Its possible IPO follows advertising technology -- or ad-tech -- companies including Rocket Fuel Inc. and Criteo SA which raised $133 million and $288 million this year. Rocket Fuel is up 63 percent since its debut, while Criteo has gained about 14 percent through yesterday.
Brett Wilson, the chief executive officer of Emeryville, California-based TubeMogul declined to comment on an IPO.
Wilson said the rise in IPO plans by other ad-tech companies is a product of the industry’s fast growth.
“You’re starting to see the winners in the ad-tech market,” Wilson said by phone. “You’re seeing the cream of the crop attempt to go public and use that platform to maintain and improve their market share.”
Other ad-tech companies that have gone public this year are New York-based Tremor Video Inc. and YuMe Inc. Tremor is down 57 percent since its June debut, and YuMe has fallen about 11 percent since its IPO in August.
TubeMogul raised a second tranche of Series C funding from a unit of Singapore Telecommunications Ltd., in May 2013, according to a company statement at the time. The company has raised a total of $45 million from backers including Cross Creek Capital LP and Trinity Ventures.
Spokesmen at Bank of America and Citigroup declined to comment on the TubeMogul IPO.
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