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Summary:

Joost, just a few months after having its assets purchased by Adconion Media Group, has found new life as a video ad network. The just-launched Joost Video Network will serve up in-banner and in-stream ads to targeted audiences.

Joost, just a few months after having its assets purchased by Adconion Media Group, has found new life as a video ad network. With the just-launched Joost Video Network, the online video portal Joost.com will continue to operate, serving up in-banner and in-stream ads to targeted audiences watching videos on the site. But in addition to running ads through the video portal, the new Joost network will also be used to serve ads to more than 2,000 of Adconion’s publishing partners.

Adconion’s business is all about aggregating and guaranteeing large audiences for branded advertisements, and adding Joost gives it a pretty complete offering, one that ranges from creation to distribution of those ads on a massive scale. Adconion has a wholly owned production group called RedLever to create branded web content, and now with Joost.com it has a place to serve those videos. And Joost’s technology and syndication partnerships will help to distribute those messages out to other video sites.

Joost launched in 2007 with more than $45 million in funding from investors such as Sequoia Capital, Index Ventures, Viacom, CBS and Chinese tycoon Li Ka-shing, but wasn’t able to make any money as an online video aggregator. Then it set its sights on providing video management and distribution services, but that didn’t pan out either. After running out of options, it sold to Adconion last November.

Joost wasn’t the only video aggregator to face tough times in recent months. Veoh, which had raised more than $70 million from investors like Adobe, Goldman Sachs, Intel, Spark Capital, Time Warner and Michael Eisner’s Tornante Company, recently filed for bankruptcy after failing to make a business out of its video destination site. And Babelgum made numerous cost-cutting moves late last year, including down some of its offices in Europe to streamline operations.

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  1. This was a very smart move on the part of Adconion. To try and build out this technology from scratch would have been very challenging, and they can leverage the Joost brand which advertisers and content publishers are well aware of. I wonder how their online video metrics are? Since they are working extensively with advertisers that are demanding global reach, their clients will surely be demanding detailed metrics about who, where, and how many people are watching the content as well as how their ads are performing against the content. It will be a critical piece of their business. Youtube does a great job with insight which has surely helped advertisers and publishers become more comfortable with that channel, but there does not yet exist a great cross platform, cross site analytics tool for tracking online video performance.

    1. Hi Paul, TubeMogul provides a great cross platform, cross site analytics tool for tracking online video performance. I might steal your words for our marcom, if that works for you :)

  2. Agreed, the Joost brand has widespread name recognition, and the underlying distributed platform is as strong a value proposition as it ever was.

    As an aggregated ad platform it also gives other ways to monetize (PPV) their own ads, adding new inventory to their network effectively.

    Smart move for them, anyone know what they paid?

    1. less than 45M presumably? IP, brand value, applications (desktop, iphone etc), content base + user data base is probably around 20M these days.

  3. Who Knew? Joost Makes a Better Ad Network Than a Video Portal Wednesday, April 14, 2010

    [...] by ad firm Adconion last year, or the subsequent transformation of the online video portal into a video ad network: the early results are in, and they are surprisingly positive. Hidden in yesterday’s comScore [...]

  4. Who Knew? Joost Makes a Better Ad Network Than a Video Portal « Laurence Schuberth Friday, April 16, 2010

    [...] by ad firm Adconion last year, or the subsequent transformation of the online video portal into a video ad network, the early results are in, and they are surprisingly positive. Hidden in yesterday’s comScore [...]

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