Joost is about to have yet another birth, this time as an independent video ad platform. Joost’s parent company Adconion Media Group, an independent global audience network, has decided to spin off Joost Video Network as a separate standalone video ad business, in an attempt to capture larger share of the ever growing online video ad sector. Adconion has appointed Nick Higgins as executive vice-president to lead the new venture. Higgins was previously the head of global video at Adconion Media Group and held several senior positions at MSN before joining Adconion.
Tyler Moebius, CEO of Adconion Media Group said:
Video has always been a top priority for us, and after carefully watching the market and listening to our clients’ needs, we knew that now was the time to be aggressive and spinoff a successful product to become an even more successful standalone business. We are well positioned to capture more of the video market because unlike other pure-play video networks, we can provide both massive reach and scale across a broader suite of products such as: pre-roll, in-banner video, expandable ads, road blocks and custom skins and integrations on Joost.com.
Joost was founded as a video distribution startup by Niklas ZennstrÃ¶m and Janus Friis who are also the founders Kazaa and Skype. However, the Skype founders were not as successful in video distribution as they previously were in music and voice calling. Joost had several shifts and turns before Niklas and Friis finally decided to sell the startup. Adconion acquired Joost in 2009 and changed its focus from video distribution to video ad distribution. Joost now earns money by providing premium branded solutions for advertisers and brand marketers seeking to reach their targeted audience with in-stream and in-banner video advertising. With the shift in business focus, Joost turned cash flow positive and made around $30M in revenues in 2010; nearly quadrupling its revenues from the previous year. Adconion expects the Joost’s revenues to reach triple digits in 2011, making it the biggest video video advertising company across the globe, with operations in more than 7 countries.
The motive behind spinning off Joost is to take better advantage of the increasing trend in online video advertisement, which is helped by an increasing amount of video content being created. According to Adconion, the new business will also have a dedicated Joost website, launched in march 2011, for advertisers and agency partners.