ADOTAS – When a sector is as hot as online video advertising, you gotta expect some consolidation. Video search engine Blinkx scooped up online video ad network Burst Media for about $30 million in cash and stock.
As we wrote last year, Blinkx recommends videos through spider technology that uses visual, facial and speech analysis among other specialties to analyze the content. Burst, which expanded impressively through acquisitions of OTP and Giant Realm last year, claims a reach of 61% of U.S. video watchers and 130 million uniques, according to comScore. In particular, Burst specializes in monetizing content from smaller and niche we properties.
So the plan is Blinkx will embed relevant videos and video channels across Burst’s network of thousands of independent publishers. In effect, Blinkx will be able to offer targeted audiences for advertisers at handsomely priced CPMs that will make pubs smile.
“Up until now, the primary barrier to further television advertising budgets moving online has been online video’s inability to match the sheer scale of audience that television can deliver,” said Blinkx Chief Executive Suranga Chandratillake. ” We are extremely excited about the Acquisition as it will allow us to overcome that challenge: by fusing blinkx’s unique patented technology and large video index with Burst’s massive reach, we will have the potential to create personalised, online television that is watched by hundreds of millions of users.”