Companies aim to build the streamlined cross-media platform of the future.
One of the oldest online ad firms in the business - MediaMind, once known as Eyeblaster, has been acquired by digital media services company DG.
The firm was among the few last standing rich media ad management outfits that hadn't been bought during a sweep of such acquisitions around five or six years ago. Then, when Eyeblaster - which soon after rebranded as MediaMind - finally filed for an IPO last year, following a failed first attempt, it seemed clear that the firm aimed to remain on its own.
Now, MediaMind cofounder, president and CEO, Gal Trifon says he was presented with an offer he couldn't pass up. DG's focus is on producing and serving television ads, and while the partnership holds short-term promise, the true potential lies further ahead.
"Consumers are using TV for online content and online for TV content. It's clear that the two will become one," Trifon told ClickZ News.
Still, he recognizes media buyers are not quite ready to take such a platform agnostic approach. "It will be very difficult to implement this vision tomorrow morning," he said.
In the meantime, MediaMind plans to beef up its online video capabilities in the shorter term, since many online video ad buys come out of TV budgets, like the ones controlled by DG's clients.
"Longer term, the vision is to be the first company that has already a strong presence on both TV and online and build the platform of the future," he continued.
The idea is to develop a platform that enables easy conversion from TV spot to interactive digital ad, and enables cross-media measurement. DG also owns Unicast, another elder online ad tech firm, the one that introduced the term "Superstitial" into the digital advertising lexicon.
Trifon said he does not anticipate any changes for MediaMind employees, though he does expect expansion of the firm's R&D base in Israel.
"Because we worked so hard to go public, and almost a year later we find ourselves in this situation...this is a very special situation," added Trifon, who will serve as DG's new chief digital director as a result of the acquisition.
According to terms of the transaction - valued at $517 million equity or $414 million enterprise - DG will buy all of MediaMind's outstanding shares for $22 per share in cash. The SEC filing for the acquisition states, "For the twelve months ending March 31, 2011 the companies had in excess of $100 million in digital advertising revenue on a pro forma basis. With the MediaMind acquisition, DG expects to realize approximately $15 million in cost synergies identified to date, with clear opportunities for enhanced revenue growth."
Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!*
*Early Bird Rates expire April 17.
Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.
Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.
Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?
March 19, 2014