Founded in Germany in 2008, Smartclip operates in several countries including Russia, France, Spain and the Nordics and works with a portfolio of more than 500 publisher sites.
In the UK it sells inventory for publishers including News International, Telegraph Media Group, Muzu.tv and Dennis.
Adconion first launched a video ad network in 2008, and went on to buy assets from online video service Joost in 2009, keeping the Joost brand as its video advertising and content syndication division.
Matt Hunt, managing director of Adconion Media Group UK, told Media Week: "The combined entities are by far and away the largest online video network in Europe by reach and revenue."
Joost Media lies seventh among UK video networks in terms of potential reach among the UK online population, at 32.9%, according to Comscore's Video Metrix report for September. Smartclip has not signed up to Comscore.
Smartclip's exclusive in-stream reach and its Connected TV apps – exploiting video on devices such as tablets, internet-connected TV and mobiles – were key to the deal, according to Adconion founder Tyler Moebius.
"We will now be providing advertisers an exclusive audience which they can reach in scale across in-banner, in-stream and Connected TV. The online video and web TV market is incredibly fragmented across the globe and there is an extreme shortage of quality in-stream inventory."
Both companies are privately owned and financial details of the transaction were not disclosed.
Hunt said: "Outside of the major broadcasters in our competitive set you've got probably five or six major players. This is two of the top players coming together and I think it's going to disrupt the market quite a bit."
| Media | % Reach UK Web Population | ||
| Total Internet : Total Audience | 80.64 | ||
| Video Advertising Networks - Potential Reach | |||
| 1 | Google Display Network - Potential Reach | 59.93 | |
| 2 | BrightRoll Video Network - Potential Reach | 48.30 | |
| 3 | Tremor Video - Potential Reach | 46.49 | |
| 4 | Sharethrough:Social Video Platform - Potential Reach | 37.71 | |
| 5 | TubeMogul Video Ad Platform - Potential Reach | 37.59 | |
| 6 | SpotXchange Video Ad Marketplace - Potential Reach | 36.56 | |
| 7 | Joost Media - Potential Reach | 32.93 | |
| 8 | Break Media Video Network - Potential Reach | 32.87 | |
| 9 | TidalTV - Potential Reach | 32.59 | |
| 10 | Digital Broadcasting Group (DBG) - Potential Reach | 25.32 | |
Data from Comscore’s Video Metrix report for Sep 2011
The acquisition brings Adconion 118 employees in Europe.
The businesses will initially be run separately, according to Hunt, who added: "It's likely that we will look at how we combine expertise in the new year."
Asked about the timing of the deal, Hunt said: "Twelve months ago the online video landscape was so immature that everyone was really growing. It would have been too soon, there wouldn't have been that much to acquire.
"In the future I think you can expect a lot more consolidation – I think everyone's going to be looking at how they can accelerate their growth."
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