Market history suggests ‘video brokers’ risk demise within twelve months
Just five months after announcing that it had acquired smartclip, Adconion Media Group today announced that as at 1st April 2012, smartclip is now Australia’s leading independent multiscreen video and brand advertising platform, offering advertisers video reach to 5.4 million Australians across both Australian and international publishers[1]. The comScore reporting figures also show that since Adconion Media Group began integrating smartclip’s 550 publishers to its platform in Australia its video reach has increased by 34 percent.
As part of the integration in Australia, smartclip now also delivers a standalone mobile video ad platform, which allows advertisers to run mobile campaigns across both Australian and international publishers, as well as the opportunity to reach consumers through the 12 million smartphones reported to be in circulation in Australia. Smartclip’s technology allows distribution of video advertising on all major smartphone platforms and thus effectively allows advertisers to simultaneously distribute content to multiple screens including connected TVs, smartphone devices and online PCs.
Additionally, smartclip can now enable advertisers and agencies to segment video users into specific behavioural and demographic segments using data from Adconion Media Group’s current reported audience of 12.5million Australians who it serves ads via its display platform; the 4.5 million email profiles it currently manages on behalf of Australian businesses; and through Adconion Direct’s social business which serves social campaigns to some of the 10.9 million Australians with Facebook profiles.
With the integration of smartclip complete, Adconion Media Group is one of the leading independent organisations in Australia able to provide multiscreen advertising executions, unified campaign reporting, audience reach and the segmentation of that reach, enabling effective partnerships with Agency groups and their trading desks.
According to Alex Littlejohn, President APAC Adconion Media Group, the company’s multi channel approach combined with its global resources and proprietary technology infrastructure investment will prove key to its success in video.
“In the last 12 months more than 15 online video advertising businesses have sprung up and all are clamoring for a share of the market, yet the reality is that many of these organizations are simply video brokers looking to make a margin on the way through the booking process. We feel that brokers don’t offer value to agencies and advertisers who are seeking global insights, cross-channel data and tech infrastructure from their partners, and so these players risk eventually being replaced by agencies and DSPs.
“By contrast, Adconion Media Group’s smartclip can deliver genuine value to agencies, trading desks and advertisers alike. With our key strengths of global buying power, cross platform capabilities and considerable investment in our own technology to support our customers, we are very well positioned to become the online video partner of choice in the Australian market,” said Littlejohn.
Adconion Media Group has invested more than $50 million in technology platforms including its own Hadoop data infrastructure. The Hadoop software framework provides large-scale, high-performance processing of extremely large, complex data sets and is used by data intensive companies including Facebook, Amazon, AOL and IBM that need fast, reliable and scalable analytics and information.
With the launch of smartclip in Australia, Adconion Media Group has also announced that its existing Joost distribution platform will be decommissioned, with all its current clients and campaigns rolling to the smartclip platform.
According to the most recent IAB Australian PwC Online Advertising Expenditure Report, online video grew in Australia by 31 percent for the full year ending December 31st 2011, outpacing the general market growth of 17 percent to reach $43.7m.
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About Adconion Media Group
The Adconion Media Group (www.adconion.com) operates one of the largest multi-channel digital distribution platforms, with a potential reach of 687m unique users monthly across display, video, social and email. This reach corresponds to more than half the global online population.
Adconion Media Group opened its doors in Australia in 2007 and has quickly established its position as one of the fastest growing converged digital media organisations in the country, capable of connecting advertisers, brands, publishers and content owners with the right audience at the right time, through the best possible channel for an optimum, measurable result. Adconion Media Group operates through its two business units Adconion Direct and smartclip.
Adconion Media Group has 25 offices serving 20 countries around the world. It is a member of the Interactive Advertising Bureau (IAB), is one of the first companies to be IAB certified with its unique Ad Networks & Exchanges Quality Assurance program in the US and is a founding member of IASH Europe.
The Adconion logo is available at http://www.adconion.com/au/aboutus/downloads.html
[1]According to comScore’s February 2012 potential reach reporting figures