24/7 Real Media, part of global advertising powerhouse WPP, has acquired video ad technology firm Panache, the latest deal in a wave of consolidation sweeping through the online video advertising technology industry.
Steve Robinson, Panache's CEO and co-founder, told me this morning that the companies have been working together on mutual customers for a while. Panache brings its work flow, analytics and innovative Ad Catalog, which includes 25 video ad formats, which will be integrated into 24/7's Open AdStream. The first version of the new joint solution will be brought to market in Q1 '12.
The goal here is to simplify the online video ad buying, delivery and measurement process, to accelerate spending in the new medium. As Steve says, advertisers are compelled by the online video opportunity, but have been challenged by the expenses associated, particularly for analytics and understanding campaign performance. The joint solution will also be used to broaden the offering of 24/7's Global Web Alliance, which is the company's top-10 ranked display ad network.
In this respect, the 24/7-Panache deal resembles Specific Media's acquisition of BBE last year. As I recently wrote, Specific has increased its video reach by 240% over the past year, enhancing its display ad network capabilities and relationships with BBE. The 24/7-Panache deal also evokes last year's Undertone-Jambo Media deal, in which another large display ad player added video technology and distribution capabilities. Both of these underscore the point that traditional online ad companies want to stake their claims in the surging online video advertising space. No doubt more deals will follow.
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