Consolidation In Ad Net Market Begins, As Burst Buys OTP Media

There was some M&A action today in the UK ad network market. It was announced that Burst Media acquired OTP Media for an undisclosed sum. Burst has some market share in the UK, but at number sixteen in the ad net rankings it's likely to be missing out on most media plans. With OTP Media, Burst can begin to make serious inroads into the market here. Burst is big on technology, and OPT Media offers serious reach among vertical publishers in the UK. This is a good acquisition by Burst.

Consolidation in the ad network market is inevitable. There are too many players in the UK, and many don’t offer any real value to the agencies, advertisers or, more importantly, publishers. The arrival of DSPs, yield optimisers and exchanges are also starting to have an effect on some middle-man ad nets. Those that rely solely on arbitraging ad inventory are in real trouble. However those that can optimise and have some sort of vertical dynamic will do well in this market. Prepare yourself for more M&A activity.

Burlington, MA – April 7, 2010 — Burst Media, (www.BurstMedia.com), a leading provider of advertising representation, services and technology to independent Web Publishers, today announced it has completed the acquisition of On The Phone Media Limited – which conducts business as OTP Media (OTP).

The strategic acquisition reinforces Burst Media’s position as the primary enabler of vertical content online and its 15-year commitment to providing complete advertising solutions to web publishers and advertisers.

OTP Media, established in 2002, has grown to become a leading advertising network in the United Kingdom with a particular focus on premium advertising. OTP’s publisher relationships span verticals including parenting, automotive, sport, food and entertainment.

Burst was the 16th largest ad network in the U.K. in February 2010, reaching nearly 12.3 million unique viewers. OTP will further enhance Burst’s presence in the U.K. market while providing a platform to expand the services it provides web publishers and advertisers. Advertisers will now have broader solutions to reach their target audiences, and OTP will gain access to Burst’s proven resources, processes, systems and technology.

“OTP Media shares our core value of championing online vertical content and the web publishers that produce it,” said Jarvis Coffin, CEO of Burst Media. “This acquisition adds to the value of what both companies can bring to U.K. publishers and the resources they can put to work for U.K. advertisers trying to reach engaged audiences online.”

Since its founding in 1995, Burst has focused on the Internet’s unique ability to deliver rich vertical content to hundreds of millions of loyal visitors every day. Advertisers have recognized the value of vertical content sites and have always been able to turn to Burst in order to reach their target audiences.

“By joining forces with the industry’s premier provider of services to vertical content publishers, we now have access to their proven business processes and technical resources,” said Ian Woolley, Managing Director of OTP Media. “This acquisition helps us both to expand our services and solutions that we provide publishers, and it will allow advertisers to closer engage with their target audiences.”