AOL Acquires Online Video Ad Firm

AOL said Thursday that it had acquired broadband video advertising company Lightningcast in an effort to cash in on the growing online advertising industry. The Washington, D.C. company specializes in broadband video and audio ad insertion and campaign management.

Lightningcast would operate as a wholly-owned subsidiary of Advertising.com, which is an AOL property. The company would continue working with its clients, AOL said.

The company's technology platform allows for the seamless insertion of video and audio ads into online media content. It also provides detailed reports, and runs the "InStream" network, which allows it to directly sell streaming media inventory to advertisers.

AOL itself has been using the technology for the past four years in both its AOL Radio and Video products. Ligntningcast also has assisted in providing advertising for AOL's new In2TV broadband video network.

"When we looked at the video ad market we identified and pursued the clear leader - Lightningcast," AOL Media Networks president Mike Kelly said. "This acquisition will allow AOL and Advertising.com to continue to create cutting-edge ad solutions, own and further develop the leading strategic advertising platform, and set the course for the future of online video."

The assets of Advertising.com and Lightningcast would be combined, AOL said. The portfolio of the newly merged entity would serve 300 Web sites and 175 million streams per month.

Financial terms of the deal, which closed May 17, were not disclosed.