Online video advertising group Adconion Media Group has acquired smartclip, a European digital video advertising business. With the acquisition of smartclip, Adconion will gain 118 employees in Europe and expand to 27 offices serving clients throughout the UK, Germany, France, Spain, the Netherlands, Belgium, Italy and Portugal in Western Europe; Sweden, Norway, Denmark and Finland in Northern Europe; and Russia.
Adconion Media Group has affirmed its position as a market leader in online video advertising following its announcement today that it has acquired smartclip, Europe’s leader for digital video advertising. The impact on Adconion’s operations will be immediate, with smartclip’s global network of in-stream and connected TV distribution partners increasing the volume of exclusive inventory available across Adconion’s digital distribution platform.
This strategic acquisition will significantly strengthen Adconion’s position in online video in its existing markets and accelerate the deployment of its digital distribution platform into the emerging markets of Eastern and Central Europe and into the segment of Connected TV. The smartclip business with its expertise in digital video advertising will complement Adconion’s existing product range. The proprietary in-stream video and Connected TV technology of smartclip will be integrated with the Adconion platform, which is already delivering targeted ads and content across display, email, social and both in-banner and in-stream video.
Prior to this acquisition Adconion had a potential reach of 687m unique users monthly across its global platform or just over half the global online population. Now, with the inclusion of over 500 new publisher sites from the smartclip portfolio, this number will grow significantly as well as increase the Adconion global footprint to 17 countries worldwide.
According to Tyler Moebius, Founder and CEO of Adconion Media Group, this announcement will shake up the video market considerably as studios, agencies and advertisers are demanding the opportunity to hyper-syndicate more targeted content across multiple platforms than ever before.
“The addition of smartclip’s exclusive in-stream reach and Connected TV apps to our platform is an important development in growing the online video industry globally. We will now be providing advertisers an exclusive audience which they can reach in scale across in-banner, in-stream and Connected TV,” said Moebius. “The online video and web TV market is incredibly fragmented across the globe and there is an extreme shortage of quality in-stream inventory. We’re seeing the same market evolution in video inventory that we experienced in premium display several years ago. Opportunistic vertical broker networks are popping up every day and are focused only on arbitrage, or brokering the same real estate and essentially adding no value to the advertisers, publishers or content partners. We are focused on providing technical solutions to our publishers, superior monetization for our content partners and exclusive audiences and deep user experiences at scale to our advertisers.”
“Adconion is both strategically and technologically a natural partner for us to accelerate and achieve smartclip’s next level of growth” said Jean-Pierre Fumagalli, co-founder and CEO of smartclip. “Both parties understand the evolution of audio visual media consumption and are committed to delivering to advertisers and agencies solutions for a digitally merged TV and online video experience on a global scale.”
The deal adds several dimensions to Adconion’s brand marketing platform, Joost, and solidifies Joost’s position in the online video advertising and content syndication market. Currently through Joost, Adconion offers targeted distribution of content through multiple formats including television commercials, interactive pre-roll and expandable in-banner video on multiple platforms.
This strategic acquisition allows each of the companies to draw on their key strengths and together drive innovation in the industry. smartclip’s technology standardises different online video advertising formats across multiple devices and publisher sites, connecting relevant advertisers to premium content and websites offering highly efficient video campaigns. Its superior ad products, which support multiple technical specifications, will be included in Adconion’s platform which will be leveraged by both smartclip and Joost. Adconion’s creative and branded entertainment company RedLever, will also support the new opportunities, producing branded entertainment content to meet the increased demand of online video.
Matthias Quadflieg, Adconion’s chief operating officer international commented “We believe advertising will be the main monetisation vehicle for Connected TV programs and apps. The heritage of Adconion Media Group lies in maximising revenue for commercial partners through delivering the right audience, on the right platform, to the right brand, at the right time, at unprecedented scale. I look forward to welcoming smartclip to our Adconion family. Together we will create amazing user experiences that supercharge the global video ecosystem for the benefit of consumers, advertisers, publishers and content owners.”
The approach of multiscreen delivery and monetisation which smartclip follows will strengthen the position of Adconion Media Group as a driver of digital marketing innovation. By 2015 Cisco predicts the number of connected devices will reach over 15 billion – twice the world’s population. It also predicts that the proliferation of tablets, mobile phones, connected appliances and other smart devices will drive this growth and consumer video will continue to dominate Internet traffic and that by 2015 one million minutes of video will be watched online every second.
With the acquisition of smartclip, Adconion will gain 118 employees in Europe and expand to 27 offices servicing clients throughout the UK, Germany, France, Spain, the Netherlands, Belgium, Italy and Portugal in Western Europe; Sweden, Norway, Denmark and Finland in Northern Europe; and Russia.