With Tremor and ScanScout serving 667.5 million video ads in September according to comScore, the combined entity (which will keep the Tremor brand) will be by far the largest independent video ad network (Brightroll is next up with 476.4 million), and second in the general video ad space to Hulu (794 million). According to AdAge, the company is looking to release an IPO in the next 18 months.

“By combining the companies’ strengths, we can deliver what advertisers have told us they’re looking for and create a clear must-buy in the industry for large online video budgets,” said Bill Day, who moves from ScanScout CEO to Tremor CEO with the merger. “Tremor Media is the largest video ad network serving the most advertisers with absolutely the largest footprint of premium publishers and targeted video inventory.”

The merged entity will offer a reach of around 100 million monthly uniques. Tremor and ScanScout’s combined technology will allow targeting by demographics and time of day as well as superior analytics and optimization services.

So who is going to scoop up this new entity? Are pure-play video ad networks really going to be competitive in the near future, or will video become an arm of display? Coincidentally, comScore reports Google served less than half the video ads Tremor-ScanScout did — 242.5 million. Perhaps independent video ad networks have some more life to give.

Then again, new Tremor Executive Chairman Jason Glickman tells AdAge that both Tremor and ScanScout are profitable or near-profitable (thanks for being so straightforward, Glick!) even though they’re still investing in technology. Tremor has received $80 million in funding and its 2010 revenue is expected to be around $75 million; the 2011 estimate was $110 million before the merger. ScanScout, which has garnered $17.5 million in funding, is looking at revenue around $25 million.

You give them something to do. Something to click.

At least that’s what worked for ScanScout. The network’s Super Pre-Roll video ads offer interactive elements (shiny stuff). For example, in a recent campaign for Vaseline, a survey playing off of the ad’s visual theme lets you know what percentage of respondents also look for a silky smooth feeling in a moisturizer (24%, apparently).

People do love to pick up… I mean, click on shiny stuff — Super Pre-Roll Ads on the network had a click-through rate 350% higher than plain ol’ pre-roll ads.

Alyn Glazerman has been named regional sales manager in ReachLocal’s newly minted office in Toronto.

ShareThis, a network that simplifies sharing online content, has appointed Vikram Bhan as the company’s chief product officer. Most recently, Bhan was the vice president of audience product platforms at Yahoo.

The partnership aims to expand marketers’ distribution channels for highly targeted in-video ad units with in-stream creative innovations and an open platform approach. New creative units will involve a gaggle of new features including geo-targeting, RSS feeds and dynamic data. In-stream videos are on the rise: according the Forrester, they grew 100% last year, with 85 billion impressions.

“ScanScout’s advanced video ad platform features made this partnership a natural fit for us,” said Jason Tafler, CEO of PointRoll. “We’re excited to team with ScanScout to provide global brands with a seamless solution that maximizes their opportunities for video.”

PointRoll serves more than 70 billion rich media impressions each year; two-thirds of the Fortune 500 are clients. ScanScout serves hundreds of millions of ad impressions each month.

The partnership will enable viral distribution of video ads from the ScanScout Network to more than 25 social media platforms. ScanScout cited comScore stats that say nearly 148 million people in the U.S., or 81% of online users, viewed widgets in November of 2007; consequently, marketers who are hoping to ratchet up digital campaigns are increasingly making widgets a bigger part of their ad push.

Clearspring’s tracking methods will enable ScanScout to show advertisers how their widgets are being distributed and engaged on social media sites, including MySpace, Facebook, Google, Yahoo and others.

“This partnership adds tremendous value to advertisers working with ScanScout,” said Hooman Radfar, co-founder and chief executive officer of Clearspring. “It enables easy, viral distribution of ads that consumers appreciate enough to share with their friends. Large numbers of online users are sharing content – including video ads – through the use of our widget network. Our partnership enables ScanScout to provide advertisers an automated way to essentially ‘widgetize’ their video ads bringing broader reach and interest to their message.”

As part of the deal, Broadband will implement ScanScout’s overlay technology across its news and entertainment affiliate network, which is comprised of more than 1,800 branded local TV, newspaper and radio sites nationwide.

“Broadband Enterprises has entered into this partnership because of ScanScout’s innovative technology, that provides some of the best targeting features in the online video industry as well as their ability to serve advertising within the video stream,” said Darryl LaRue, EVP operations and marketing, Broadband Enterprises. “ScanScout’s Brand Protector, as well as their additional technology offerings, holds great potential moving forward for our extensive content and site partners.”

ScanScout said it will monetize Broadband’s network traffic by matching relevant ads with quality content in a way that engages viewers – a consistent problem for interactive advertisers that are trying to break into the potentially lucrative, but tough to navigate social media and video terrain.

Members from Time Warner, Digitas, venture capital partners from General Catalyst and First Round Capital will be joining the board of directors and the executive team of ScanScout.

Time Warner senior vice president, Rachel Lam will be elected board observer should the deal go through. Lam stated, “With video becoming an ever more prominent part of content strategies on destination sites, we see ScanScout and their contextual, in-stream advertising capabilities positioning them extremely well to address both advertiser and publisher needs.”

Jim Rossman, Digitas COO and Paul Vidich, a former AOL and Warner Music Group executive are joining as independent members.

The company initially raised $7 million in expansion funds from General Catalyst as well private investors.