Adify, Force Behind 'Vertical' Ad Networks, Adds Video

Will Allow Publishers to Syndicate Video With Ads

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NEW YORK (AdAge.com) -- Get ready for dozens of new video ad networks to bloom. Adify, the company behind more than 140 online display ad networks, is adding video, which will allow publishers to easily syndicate video with advertising attached.
Break.com, which serves ads across more than 50 partner websites, is one of the first two ad networks to adopt Adify's video service.
Break.com, which serves ads across more than 50 partner websites, is one of the first two ad networks to adopt Adify's video service.

The new capability is part of the latest iteration of Adify's system, which powers ad networks operated by Forbes, Martha Stewart Living, iVillage and many others. The new system will allow those publishers to distribute video across the websites within their ad networks and automatically share ad revenue.

As a result, ad-supported video could become a feature of more websites, particularly since ad rates for video ads are significantly higher than display advertising.

"It means a lot more ad networks will have video as a component," said Adify CEO Russ Fradin.

The first two ad networks to adopt Adify's video service are Break.com, which serves ads across more than 50 partner websites, and DriverTV, syndicator of automotive video, 35% owned by NBC Universal.

Break.com was already syndicating video and advertising across its network, but CEO Keith Richman said it was a time-consuming and labor-intensive process to manage individual relationships with each site.

"One of the core issues facing advertisers is how to aggregate audience and run advertising across thousands of sites," Mr. Richman said. "This makes it a lot easier."

Adify allows video to be distributed with pre-, mid- and post-roll, or overlay ads, regardless of the type of video playback technology among the sites in the network.

San Bruno, Calif.-based Adify is the company behind the explosion of so-called vertical display ad networks, that is, networks of sites reaching a certain demographic. Companies such as Warner Bros. have used Adify to roll up like sites, such as its Momlogic network, to allow its sales force to sell inventory across many sites. Adify powers 140 such networks representing 6,000 publishers and takes a cut of the ad revenue booked using its technology.

There are also plenty of video-specific ad networks from Broadband Enterprises and Brightroll to Yume and ScanScout. Rather than adding competition to those networks, Mr. Fradin believes the addition of more video impressions will create more inventory that could ultimately be sold through networks.

Adify was acquired by closely held Cox Enterprises in Atlanta last spring for $300 million.
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