Andover, MA-based CMGI Inc. signed a definitive agreement to acquire 2CAN Media Inc., a large, site-focused
online advertising representation firm. Financial terms were not disclosed.
2CAN will join the ADSmart
organization under the direction of
Chairman and CEO John Federman. Ryan Steelberg, currently president and CEO of
2CAN Media, will remain as president of the newly combined ADSmart, reporting
to Federman.
The transaction includes the five sales divisions of 2CAN Media–Pinnacle
Interactive, WebRep, ECG, MediaPlus and Grupo NetFuerza–and creates a
combined sales staff of more than 65 people in offices in Los Angeles, New
York, San Francisco, Chicago, and Detroit.
Adding to its current network, the new ADSmart will represent about 135
brands, including Smart Money, Standard & Poor’s PersonalWealth, Arthur
Frommers Budget Travel, Kiplinger Magazine, National
Geographic, MotorTrend,
CitySearch, Entrepreneur Magazine, Teen Magazine, Ladies
Home Journal, Better
Homes and Gardens Online and Raging Bull.
“2CAN Media brings to ADSmart an impressive line-up of Web sites and a proven
track record of brand-focused representation,” said David Wetherell, chairman
of CMGI. “The list of sites is also well balanced, with no one site accounting
for more than 12 percent of their total inventory.
“The experienced leadership of John Federman and Ryan Steelberg, a roster of
top Web publishers, plus the market-leading profiling and targeting tools of
Engage Technologies–it’s a powerful combination. . .”
ADSmart said it now will have a combined reach of 650 million monthly
impressions.
“Our merger with ADSmart firmly establishes the company as the largest brand
sales organization on the Internet,” said Steelberg. “Coupled with the
strategic benefits of a relationship with CMGI, the empowered ADSmart will set
the standard in professional advertising sales, targeting technologies, and
innovative marketing solutions for Internet
publishers and advertisers.”
Building on the sales division strategy of 2CAN Media, ADSmart also announced
the creation of three new business units. ADSmart’s existing site network will
continue under the name ADSmart Brand Sales (ABS), offering online advertising
opportunities in affinity groups such as Family and Parenting, Business and
Finance, and Sports.
The current ADSmart sales team will serve as the platform for the second new
division, ADSmart Sponsorships, with a focus on high-return online
sponsorships and promotions. Also being created is the ADSmart Consulting
division, delivering strategic advisory services to sites both in and out of
the network.
An Internet holding company, CMGI combines operating companies with
strategic venture investments to create a diverse set of businesses delivering
Internet solutions. Microsoft, Intel and Sumitomo hold minority stakes in
CMGI. The CMGI Internet
Group consists of its majority-owned subsidiary companies ADSmart, Engage
Technologies, NaviSite, NaviNet, Planet Direct, Magnitude Network and
ZineZone.
