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

Signaling further industry consolidation, video ad network Tremor Media on Monday announced the acquisition of rival ScanScout. Financial terms of the deal were not disclosed.

Per the deal, Jason Glickman becomes executive chairman of Tremor Media and Bill Day becomes the company's CEO. "We are creating the preeminent leader in interactive video advertising," Glickman said of the merger.

Tremor can already tailor campaigns based on brand lift, purchase intent, engagement or viewing duration. With the acquisition, the company hopes to better reach targeted audiences at scale. "By combining the companies' strengths, we can deliver what advertisers have told us they're looking for," said Day.

Spanning thousands of sites, Tremor Media's network now has a potential reach of 100 million viewers. The company serves in-stream and in-banner video ads across a network of mid-tier and premium sites including WWE.com and NYTimes.com.

The company has increasingly sought TV ad dollars, which it believes will increasingly migrate online.

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.

As a result, ad networks are eying acquisitions to secure a larger piece of the revenue pie. Also on Monday, for example, Undertone announced the acquisition of video ad network and technology provider Jambo Media.

Going forward, Day said, "the company will continue to innovate and bolster its leading technology platforms," while "our strong balance sheet will enable us to be to be very aggressive in pursuit of expansion on all fronts."

In April, Tremor secured $40 million in venture capital funding led by Draper Fisher Jurvetson Growth Fund, with participation from DFJ and Triangle Peak Partners. Canaan Partners, Meritech Capital Partners, and SAP Ventures also participated in this financing.

The company became profitable at the end of last year, doubling the size of its video advertising network from 2009 to 2010.

Post acquisition, Tremor Media will now have 40 sellers in 11 offices throughout North America and Europe.

The company's combined technology suite will include a complete inventory monetization platform for publishers and targeting, brand protection and brand health optimization/analytics for advertisers.