Feeds

Blinkx bursts with ad-serving network buy

Online video is the new TV

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Video search giant blinkx is getting closer to becoming a broadcaster, extending its content reach to the advertising community with the acquisition of Burst Media for US$30m.

The merger will bring blinkx’s vast data bank of 35 million hours of online video and TV to Burst’s claimed audience of over 130 million unique users.

CEO of blinkx, Suranga Chandratillake, says that by fusing his company’s technology and large video index with Burst’s massive reach “we will have the potential to create personalised, online television that is watched by hundreds of millions of users”.

The strategy will include the creation of contextually relevant video channels for Burst’s network of online publishers. The targeted web channels aims to aggregate an online video audience for advertisers across long tail internet sites, which arguably rival the scale of television networks.

The reach of Burst’s network of publishing partners extends to 61% of the US online population.

“In just a few years, we have seen online video advertising become the fastest growing segment of online advertising. 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. We are extremely excited about the acquisition as it will allow us to overcome that challenge,” Chandratillake said.

Currently, display banner advertising sold on Burst’s networks attracts an average CPM of US$1.49, while blinkx's standard, untargeted video pre-rolls were priced at a CPM of US$20 during 2010, reflecting the demand for highly targeted video advertising products.

blinkx believes that the combined group will be able to realise some of the differential between these two rates and share the value with its online publishers. It expects the acquisition to have a future revenue run rate of US$33 to $34m, kicking in from the year ending March 2012. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.