Specific Media Makes Video Ad Play, Acquires BBE

Company also plans expansion into mobile ad space and a 2011 IPO.

Behavioral targeting-driven ad network Specific Media is hoping to capitalize on recent growth in online video advertising spend, and has acquired video ad company BBE to help it realize those ambitions. The purchase will give Specific an instant footprint in the online video space, with BBE’s network currently reaching over 10 percent of U.S. users on a monthly basis, according to comScore.

BBE’s media network will be immediately integrated with Specific’s existing operations, with staff from the two firms consolidated under one roof. BBE’s Vindico ad-serving platform will continue to operate under the BBE brand, however, and will seek to sell its technology as an independent offering.

“We’ve been looking at this space for quite some time,” Specific Media CEO Tim Vanderhook told ClickZ. “We were trying to find a company that offered more than just a media network. Obviously that side is important, but the other pieces are the ad serving platform and BBE’s original programming division,” he said, predicting branded video content will “explode” over the next couple of years.

The company hopes its move into video will help it attract more spend from verticals such as CPG advertisers, which have been heavy early adopters of the format, but haven’t historically gravitated towards display advertising. “It’s easier to sell soap through a video spot than a banner ad,” Vanderhook said, suggesting the merger will help plug gaps in both companies’ repertoires. “Where they were strong we were weak; there’s little overlap in our client base,” he added.

According to Vanderhook, Specific plans to continue its expansion aggressively over the next twelve months, initially extending its new video offerings across Europe before turning its attention to a mobile advertising product.

“Mobile is very important to us. The question is whether we can make the right play in that space through one of our internal platforms, and do it organically, or whether we will need to get acquisitive,” Vanderhook said, adding that the firm will seek to raise capital through an IPO at some point in 2011 if the financial climate allows. “The reality is, it takes a lot of capital to be an independent player in this space,” he explained.

In the display ad space, Specific Media’s data collection and behavioral ad targeting practices have attracted criticism from privacy advocates and scrutiny from legislators for a number of years. In August, the company was implicated in a lawsuit regarding its alleged use of Flash cookies to “re-spawn” HTML cookies for ad targeting, a practice the plaintiffs argue essentially removes users’ ability to control the way their data is being used.

Vanderhook dismissed the suit as “ill-advised,” arguing the company does not use Flash cookies for ad targeting purposes, and that the Network Advertising Initiative (NAI) has now effectively outlawed the practice completely. He conceded, however, that it has in the past used Flash cookies to re-spawn HTML cookies for purposes such as ad frequency capping.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource