$30 million deal will lead to video channels on the Burst Media network.
Video search engine Blinkx is buying Internet ad firm Burst Media in an attempt to provide greater distribution for its video content. Blinkx is paying $30 million (£18.5 million) for the company.
Blinkx boasts 35 million hours of online video, and Burst's network of publishers reaches an audience of over 130 million unique users, according to comScore. Blinkx will create content channels for Burst's publishers, which will hopefully attract advertisers looking to reach specific demographics through Web video. The goal for the combined companies is to create the sort of reach and frequency online that keeps advertisers addicted to TV buys.
"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 Jarvis Coffin, CEO of Burst, in a written statement.
Blinkx is banking on Burst's large network to help boost its haul from ad sales. Burst's attracted an average CPM of $1.49 in 2010, largely from display ads, whereas Blinkx's CPMs for video ads were closer to $20. Combining Burst's network with Blinkx's video content "will be able to realize some of the differential between these two rates," said the release.
Douglas Quenqua is a journalist based in Brooklyn, NY who writes about culture and technology. His work has appeared in The New York Times, Wired, The New York Observer, and Fortune.
2015 Holiday Email Guide
The holidays are just around the corner. Download this whitepaper to find out how to create successful holiday email campaigns that drive engagement and revenue.
Three Ways to Make Your Big Data More Valuable
Big data holds a lot of promise for marketers, but are marketers ready to make the most of it to drive better business decisions and improve ROI? This study looks at the hidden challenges modern marketers face when trying to put big data to use.
December 2, 2015
1pm ET/ 10am PT
Wednesday, December 9, 2015
5pm HKT / 5am ET