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Video Ads Landgrab: Adconion, blinkx Buy Smartclip, PVMG

Two new acquisitions underscore how M&A is fuelling ongoing consolidation in the still-growing online video advertising segment.

Video search engine and advertising firm blinkx is placing new shares representing 1.8 percent of the company to acquire Melville, NY-based search marketing firm Prime Visibility Media Group for $36 million (£22.4 million in cash).

blinkx says it wants to serve its video results to some of PVMG’s 1.5 billion daily text search queries. PVMG’s text ads claim a CPM of $5 while blinkx says its untargeted sponsored video ads boast a $13 CPM.

PVMG’s network claims an average of 600 publishers and 350 publishers. The company lost $389,511 last year on revenues of almost $30 million.