Adconion Buys Online Video Service Joost
Will use once-hyped platform to add content and scale to its video ad network.
Global ad network Adconion Media Group has acquired assets from struggling online video service Joost, to help bolster its video ad offering.
Speaking with ClickZ News, Adconion CEO Tyler Moebius described video ads as “a top priority for the company,” and said the acquisition would immediately add content and scale to the firm’s video ad network, Adconion.TV, which launched last year.
Joost originally launched as an ad-supported video portal. It was buoyed by a great deal of hype and press coverage but struggled to gain traction with consumers, and subsequently changed its focus to licensing white-label video services to publishers and content owners. Adconion intends to pursue a similar strategy, “providing advertisers, content owners and Web site publishers with an end-to-end global video platform and ad-serving solution,” Moebius said, “opening up further inventory and opportunities for advertisers and agencies.”
In addition, Adconion will acquire the Joost.com brand and domain, and continue to operate the existing site, in part as a vehicle to showcase its clients’ branded entertainment content. The company has in place an exclusive relationship with digital studio RedLever, through which it currently offers customized solutions for clients. Members of Joost’s existing team will join Adconion to continue running the site.
Last week, Adconion also announced an exclusive partnership with Goldbach Media Group, through which it will further extend its reach across Eastern Europe. The company currently serves more than 80 million video streams a day, targeted across 2,000 publisher sites worldwide.
Financial details of the acquisition were not disclosed, but Joost CEO and co-founder Janus Friis said the sale was “in the best interests of Joost.” Considering its U.K. arm went into administration last month, any sale at all was likely to be good news for investors. Incidentally, both Adconion and Joost have received backing from London-based venture capital firm Index Ventures, of which former Joost chief executive Mike Volpi is a partner.
