Commentary

Video Gets Specific: Vanderhook On Buying BBE

As Mediapost's AdNets conference returns to New York on Nov. 2, it will mark about two years since we started this show to cover what was then the "400 ad networks cluttering the market," or so many said. Even then the conventional wisdom stated there would be a great and necessary consolidation of these many vertical, horizontal, platform-specific nets and the many targeting and data technologies mushrooming up around them.

Well, here we are two years later, with hundreds of players still standing and little evidence that the market is going to consolidate soon. In recent years generally we have seen major portals like Google, Yahoo and AOL gobble networks and their technologies -- but not much activity among the nets merging with one another.

This week we did see one such combination, which got surprisingly little commentary or coverage. One of the largest independent media platforms, Specific Media, bought up video platform and ad network BBE. The purchase represents what may be a trend among display networks to broaden their portfolio away from a slower-growing banner market and include the space where they hope a lot of the TV branding money will flow: video. At the same time, combining video with the scale and technologies of company like Specific, which has been doing behavioral targeting for years, may also enrich the targetability of richer media.

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Specific claims to reach 160 million U.S. consumers and deploys behavioral, demographic, geo and contextual targeting. BBE claims a network of 2,400 publishers and 300 customers. According to the two companies, there is already a considerable overlap in their client roster, so existing customers will enjoy an immediate consolidation of efforts.

To reflect on what this deal may portend for the ad net economy and how it helps media buyers in the long run, I caught up with Specific CEO Tim Vanderhook. He thinks that expanding to video is the sensible next step both for display and for more granular targeting technologies.

Behavioral Insider: Is this a sign of necessary consolidation of the display and video sides among ad networks? Do you expect more of the same?

Tim Vanderhook: The traditional ad network model is outdated, so for any media company to stay relevant and continue to bring value to advertisers, it must increase its offerings beyond display. Video is definitely the direction the market is heading in, as advertisers increasingly look for the most engaging ad formats for their branding initiatives. Specific Media prides itself in leading the industry in terms of innovation and offering, so for us it was a natural evolution of our leadership position.

BI: Other than convenience, are there any advantages to media buyers in this sort of combination for pricing and planning?

Vanderhook: This combined offering allows advertisers to target video in ways that had previously only been possible in display. Advertisers on the Specific Media platform will now be able to run targeted, scalable video advertising campaigns and create original branded content, while BBE's video advertisers will now have access to an expanded view into data, targeting and analytics. The integration gives advertisers a central hub for both display and video campaign metrics, resulting in a more synergistic view of the digital impact on their brand and enabling them to execute multi-pronged advertising initiatives powered by a single platform.

BI: Had Specific done any video on their own before this?

Vanderhook: Specific Media has always offered video advertising solutions, but previously the company primarily focused on display. Over the years, Specific Media has led the display space by offering data-driven targeting and analytics for display while online video technologies and standards continued to evolve. Similarly, BBE has led its space by developing a complete video solution backed by proven, leading technologies. The Specific Media-BBE acquisition combines the best of both worlds: the engaging brand experience that video provides with the data, targeting and analytics of display. We expect this partnership and the industry advances it creates to further accelerate the growth of online video.

BI: How will the companies be structured differently when merged?

Vanderhook: The media and original programming units of BBE will be folded into Specific Media immediately. The BBE brand will continue to exist as an independent subsidiary of Specific Media focusing on the company's technology platform, VINDICO, and led by President Matt Timothy.

BI: Will you be able to extend any of the display targeting capabilities into video?

Vanderhook: Absolutely. The most exciting aspect of this deal is the application of Specific Media's expertise in display (data, targeting and analytics) to the nascent online video market. The combination of Specific Media's established targeting and analytics capabilities with BBE's innovative and engaging video offering finally fulfills the promise of online video for advertisers by merging the best of both worlds. Our expertise in these areas will help us overcome existing market challenges in each space and create the leading interactive solution for brand advertisers.

1 comment about "Video Gets Specific: Vanderhook On Buying BBE".
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  1. Joe Bencharsky from iNet Entertainment, October 23, 2010 at 1:01 p.m.

    Interactive Video is definitely the trend for future development of advertising messages. For the first time in history, entertainment, advertising, marketing, and sales can all ride in the same vehicle.

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