mtv

 Coming to a Web theater near you: Contextual video advertising

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MTV buys Flux to add video content to network of 1000 sites

MTV Networks has acquired the remaining portion of Social Project that it did not already own. Social Project is behind the Flux social-networking platform that powers many of MTV’s sites, including MTV.com, TheDailyShow.com, and ColbertNation.com.

Social Project, which competes with Ning and KickApps to allow people to create their own niche social networks, had previously raised $47.5 million, mostly from MTV’s parent company Viacom. Flux has a total of 7.6 million members across about 1,000 different sites, 600,000 of which are at MTV.com alone.

Compared to other social networking platforms, Flux still powers a relatively small number of sites – 1000 vs. 475,000 at Ning. But the number of people each one reaches are not be so far apart. ComScore says Ning reaches 6.9 million monthly unique visitors worldwide, though that’s not an exact comparison to Flux’s 7.6 million registered users (not visitors).

Flux has one thing going for it that Ning doesn’t: MTV. Flux members can automatically bring their entire collection of videos and other content from MTV.com to Flux’s other sites. While it’s not clear what the mashup is between music videos and social networking, TechCrunch points out that it does allow Viacom to add media to its sites without having to rely on someone else’s technology.

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Could your site be the hub of an ad network?

Two developments this week reinforce the idea that the advertising value of a “destination site” may grow to encompass far more than its own ad inventory.

LinkedIn and MTV Networks each announced ad networks that essentially create large pools of ad inventory, including their own sites. The idea is that users of a site like LinkedIn reveal demographic and behavioral data that can help target ads to users who are most interested in the ad subject.

MTV even has a name for the segments, from the press release:

MTVN’s Tribes are anchored by the company’s core digital properties and extend to sites beyond its online portfolio. Each Tribe focuses on a specific demographic group and its shared interests and passions. MTVN hand-selects all partner sites and sells premium, advertising inventory and packages across each Tribe, utilizing extensive capabilities including demo-targeting, geo-targeting, day-parting and contextual targeting.

Here’s TechCrunch’s take on LinkedIn’s program, and MediaWeek on MTV.

One important takeaway, which we outlined in a recent CIR on behavioral targeting (client access only), is that so-called destination sites have a tremendous potential to become major players in behavioral targeting.  Rather than focusing on just the ad inventory of the site, destination sites can become gatherers of user behavioral and demographic data. That means  ad campaigns — and revenue — can reach far beyond the site iitself. That’s what LinkedIn and MTV are doing.

 

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