Adconion Media Group Makes Global 'Land Grab' for Video Advertising Market

SANTA MONICA, Calif.--(BUSINESS WIRE)--

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 North America operation will be significant, with smartclip's global distribution partners increasing the volume of exclusive in-stream inventory available across Adconion's Digital Distribution Platform for brand advertising.

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 687 million 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. This new partnership will shake up the video market considerably as agencies and advertisers are demanding the opportunity to distribute more content across more platforms than ever before.

“The online video and web TV market is incredibly fragmented across the globe and there is a shortage of quality in-stream inventory,” said Bruce Wiseman, COO Adconion Media Group, North America. “Many opportunistic video brokers are reselling the same inventory and essentially adding little value to the advertisers, publishers and content producers. We are seeing the same market evolution in video inventory that occurred in premium display a few years ago.”

“Advertisers, publishers and content partners are demanding better experiences with their audiences and today's premium brands need better solutions to transform advertisements into deeper engagements with consumers. The Adconion vision has always been to connect advertisers with audiences across multiple channels and experiences. Integrating smartclip's technology with our own and deploying it globally enhances the breadth and depth of Adconion's Digital Distribution Platform (DDP). The addition of smartclip's exclusive in-stream reach and Connected TV apps to our DDP platform extends Adconion's solutions for helping advertisers engage with audiences at scale across in-banner, in-stream and connected TV's,” continued Wiseman.

“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 Media, 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 standardizes 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.

“We believe that advertisers and agencies will welcome Connected TV as it will provide new inventory sources and new audiences for their content. We see this accelerating the growth of brand budgets migrating from TV to online and bringing digital into the lounge room. It's also exciting to be able to give viewers greater control of the content they consume. Connected TV is destined to change the way audiences consume content on television and Adconion is paving the way forward in this market,” said Wiseman.

The approach of multiscreen delivery and monetization 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 taking the company to over 700 employees globally, operating in 27 offices in 17 countries.

About Adconion Media Group

Adconion Media Group (www.adconion.com) is one of the largest independent global audience, video and content networks, with a potential reach of 687 million unique users monthly across its global platform or just over half the global online population every month.

As a digital media holding company, it manages a portfolio of brand and performance solution businesses worldwide. Adconion U.S. wholly owns Adconion Direct, a multi-channel distribution platform spanning display, email and social media; Joost Media, a branded solutions company that connects brands and audiences; RedLever, a global studio specializing in developing and producing branded-entertainment and associated content; and Magnify Platform Services, which provides managed services to advertising agencies, networks and publishers.

Adconion has 16 offices in eight countries around the world, is a member of the Interactive Advertising Bureau (IAB) and is a founding member of IASH Europe.

About smartclip

smartclip, Europe's leader for digital video advertising, is delivering video ads across a variety of platforms and devices with utmost media efficiency. The company works with publishers, media agencies and advertisers, enabling all parties to benefit from the placement of online video ads. smartclip helps media agencies and advertisers roll-out their campaigns on a number of different devices (tablet PCs, Connected TV sets, gaming consoles, desk- or laptops and smartphones) and allows publishers to benefit from proprietary and innovative technology solutions. smartclip is headquartered in Hamburg, Germany and has 11 offices throughout Europe. The company was founded early 2008 by Jean-Pierre Fumagalli and Roland Schaber in cooperation with the eValue Group of Internet entrepreneur Thomas Falk and backed up by Van den Ende & Deitmers, the venture capital of Endemol founder Joop van den Ende. www.smartclip.com. Twitter: @ smartclipAG