Earlier this week, ad network Specific Media acquired video ad network BBE. This appears to be another step toward the company's ultimate goal as CEO Tim Vanderhook told ClickZ "that the firm will seek to raise capital through an IPO at some point in 2011 if the financial climate allows." Read more.
Specific Media COO/Co-Founder Chris Vanderhook discussed the BBE acquisition.
AdExchanger.com For Specific Media, what strategic factors were involved in acquiring BBE?
CV: Although display advertising is a medium that has come into its own, television continues to attract big brands, who revel in the impact these ads create. Video enables brands to engage consumers and tell a story in a way that display simply cannot do on its own. As the interactive advertising market matures, brands will be increasingly attracted to the way that online video replicates the impact of TV – but they will choose to work with partners who have the strongest targeting and measurement capabilities. The combined Specific Media-BBE offering brings the strengths of display advertising (data, targeting and analytics) to the engaging format of online video, finally enabling brand advertisers to capitalize on this impactful medium.
What are your plans for integration of BBE into Specific Media?
BBE’s current media operations will be integrated immediately into Specific Media. BBE will continue to operate as an independent subsidiary of Specific Media focusing on its technology platform, VINDICO.
Are there other areas that might make sense for acquisition by SM? Mobile, perhaps?
We pride ourselves on being industry leaders and always have our eyes open to emerging technologies and formats that will enable us to offer more impactful advertising to our clients.
Why is the ad network model still successful? How do you keep it that way?
Some time ago we realized that the traditional ad network model was very limited. Specific Media has had continued success and growth because we made a strategic decision at that time to break away by expanding our core offerings through data, targeting and analytics. This has been the recipe for our success and this advantage will keep us in the leadership position. Moving forward, we plan to apply our expertise to the fast growing video market.
By John Ebbert