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AOL Acquires Lightningcast

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May 18, 2006 

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Sarah Novotny  |

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AOL Acquires Lightningcast

AOL today announced that it has acquired broadband video advertising provider Lightningcast.

Financial terms were not disclosed for the purchase of the Washington D.C-based firm, which was founded in 1999 and houses 34 employees. Lightningcast specializes in broadband video and audio ad insertion and campaign management. The company helped pioneer the development of solutions for delivering advertising into on-demand, live, and downloaded video content across the web. In addition, earlier this year Lightningcast launched its own in-stream video advertising network, effectively allowing Lightningcast to expand its role in providing managed insertion of streaming media advertising and reporting by becoming a direct seller of streaming media inventory–across its third party network–to advertisers.

“This acquisition will provide a huge infusion of talent, technology, and publisher relationships for Advertising.com at a time when streaming video is growing at a blistering pace,” said Mike Kelly, President, AOL Media Networks, in a press statement. “When we looked at the video ad market we identified and pursued the clear leader – Lightningcast. This acquisition will allow AOL and Advertising.com to continue to create cutting-edge ad solutions, own and further develop the leading strategic advertising platform, and set the course for the future of online video. The acquisition of Lightningcast is also an important component in furthering AOL’s established leadership as the premier destination for video on the web.”

Since 2002, AOL has used Lightningcast’s platform, first for audio (AOL Radio) and later for video streaming advertisements (AOL Video). The online media giant will now merge Lightningcast’s streaming media technology and advertising network operations under Advertising.com within AOL’s Audience business unit. The combined network will comprise 300 websites and 175 million monthly streams. Advertisers will be able to target video campaigns across the network by behavior, demographic, content channel and more.

Tags: acquisitions, Advertising.com, AOL, in-stream_advertising and Lightningcast

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