• by Gavin O'Malley  @mp_gavin, November 8, 2010

Undertone today announced the acquisition of video ad network and technology provider Jambo Media. Financial terms of the deal were not disclosed. With the deal, Undertone hopes to further bridge the gap between traditional TV and digital advertising.

"Undertone's goal is to help marketers 'span the screens,' putting video to work for brands on televisions, personal computers and mobile devices," said Mike Cassidy, CEO of Undertone. "Pairing video and display under a single management platform helps advertisers serve the right content in the right format to the right person."

Per the deal, Undertone adds Jambo's video player and content management technology to its portfolio.

Jambo, which currently supports about 1,000 sites, powers vertical video networks and portals with its Jambocast platform. The platform offers a suite of video players and a system for managing advertisers, Web sites and content in one interface.

Presently, Undertone has a potential reach of roughly 17 million unique viewers per month.

Pursuing growth at home and abroad, Undertone received an investment in the range of $40 million to $100 million from JMI Equity in early 2008.

In May, Undertone debuted Qualified Insights, which provides a method to assist companies in analyzing how advertising campaigns influence consumer behavior, interaction, and long-term commitments to brands. Presently, Undertone has roughly 350 sites in its ad network.

In 2007, it launched a search engine marketing and search engine optimization practice, dubbed Undertone Search. The pay-per-click SEM offering encompasses ads on all major search engines, including Google, Yahoo, MSN and Ask.com, and is a fully managed service with Undertone reps managing planning, keyword identification, bid management, tracking and reporting.

Expected to grow 40% every year over the next five years, online video advertising is on track to become a $5 billion market, according to Piper Jaffray projections.

An earlier version of this story erroneously stated that Undertone is a division of Intercept Interactive. While it once was, this is no longer the case.