Media, ad technology and data specialist Cadent has formed a new division, called Cadent Technology, that merges the technology teams of BlackArrow and Cadent Network, a national TV advertising media solutions provider.

Formation of the new unit comes about six months after Cross MediaWorks (Cadent’s  holding company) announced the acquisition of BlackArrow, a dynamic ad insertion company that counts partners such as Time Warner Cable, Comcast, Charter Communications, Bright House Networks, Rogers Communications, and Liberty Global/Virgin Media. 

In the new structure,  New York-based Cadent Technology will focus on developing addressable, cross-platform advertising and data solutions that support BlackArrow’s new and existing customers, while Cadent Network will continue to encompass Cadent’s media solutions, the company said. 

“The creation of Cadent Technology reflects our commitment to help the pay-TV industry monetize video delivered to any screen at any time. The merging of the teams and their complimentary expertise creates a full range of products and services from self-serve advertising software to fully managed inventory services, across all forms of linear and non-linear TV inventory,” Nick Troiano, CEO of Cadent and the former CEO of BlackArrow, said in a statement.  

In yet another example of a consolidating advertising technology sector, Cross MediaWorks has agreed to acquire BlackArrow, a dynamic ad insertion specialist that counts a reach of more than 40 million homes.

BlackArrow, which has been rumored to be on the block for several months, counts several major pay TV operators as customers, including Time Warner Cable, Comcast, Charter Communications, Bright House Networks, Rogers Communications, Liberty Global/Virgin Media.  BlackArrow is also a partner of Canoe Ventures, the MSO-backed advanced ad J.V. backed by Comcast, TWC, Cox Communications, and Bright House Networks.

Financial terms of the deal were not announced, but Cross MediaWorks said it will use BlackArrow to power the expansion of Cadent, its national TV advertising network. Founded in 2005, BlackArrow has raised about $65MM. 

Update: The cash and stock deal is valued between $90 million to $120 million, The Wall Street Journal reported, citing an unnamed source familiar with the matter. 

They said the deal will help BlackArrow to service new customers and expand its solutions to new TV platforms by tapping into Cross MediaWorks’ pay TV partnerships and linear TV advertising technology. As a subsidiary of Cross MediaWorks, BlackArrow will continue to operate separately alongside other Cross MediaWorks units, but will collaborate with all of the Cross MediaWorks’ portfolio companies.

The deal also follows a flurry of M&A activity in the ad-tech arena, including Comcast’s recent acquisitions of This Technology, Visible World and FreeWheel.

Founded in 2007, Cross MediaWorks has relationships with agencies such as IPG, WPP, Omnicom, Havas and Publicis, and works with top brands that include Allstate, Dannon, Dr. Scholl’s, FedEx, Jimmy Dean, Kumon, L’Oreal, Liberty Mutual, Macaroni Grill, Merck, Red Robin, Sears, StubHub and Welch’s.

Nick Troiano, CEO of BlackArrow, will serve as CEO of Cross MediaWorks, and Stephanie Mitchko-Beale, CTO of Cross MediaWorks will assume CTO/COO responsibilities. Mitchko-Beale, a former Cablevision Systems exec, joined Cross MediaWorks in July 2014.

Troiano will also join Barry Baker and Bob Wright, senior advisors to Lee Equity Partners, on the board of directors of Cross MediaWorks, which is part of Lee Equity Partners’s.  Baker previously headed Boston Ventures' communications and entertainment practices, and was CEO of USA Interactive, parent company of USA Networks, Sinclair Communications and River City Broadcasting.  Wright formerly was chairman and CEO of NBCUniversal and was a vice chairman and executive officer of GE.

“Cross MediaWorks and BlackArrow individually have deep roots in the pay-TV community,” said Joan Gillman, Executive Vice President and Chief Operating Officer, Media Services for Time Warner Cable and a member of the Board of Directors of BlackArrow, in a statement. “The integration of BlackArrow into the Cross MediaWorks family will provide operators with the tools and services they need to maximize revenue from their TV inventory, whether that's traditional linear TV spots or addressable advertising on VOD or OTT platforms” 

“Both Cross MediaWorks and BlackArrow have a proven history of delivering in this space and their combination will serve to accelerate progress for our clients at MAGNA GLOBAL and across the industry,” added Todd Gordon, EVP, U.S. director for Magna Global.

“By combining BlackArrow’s multi-platform expertise and advanced advertising technology with Cadent Network’s best-in-class media sales force and deep pay-TV provider relationships, Cross MediaWorks will have the leading technology platform and sales organization across all forms of television viewing,” Troiano said. 

Paul Ranger, an exec last with Cisco Systems, has joined advanced advertising firm BlackArrow as vice president, sales, according to an update made to his LinkedIn profile.

Ranger most recently was with Cisco, coming on board after Cisco completed its $5 billion acquisition of video security and software company NDS in 2012. Ranger was with NDS for about a decade.

BlackArrow has been asked for further comment about Ranger's appointment, but he is joining the company as it pushes ahead with new growth strategies, including a recent expansion into Europe that has yielded its first deal in the region, with Virgin Media, the U.K.’s largest cable operator that’s now part of the Liberty Global empire. BlackArrow estimated at the time that the addition of  Virgin Media will push its reach to more than 37 million homes, complementing deployments with Comcast, Time Warner Cable, Bright House Networks, and Rogers Communications. Also last year, BlackArrow president Nick Troiano assumed the duties of CEO following the resignation of Dean Denhart.

Updated: BlackArrow confirmed the appointment, noting that, in his new role, Ranger will be focused on the BlackArrow's client base in North America.

“I’m delighted to be joining the BlackArrow team at such a pivotal time for the TV advertising industry," Ranger said, in a statement. "I look forward to partnering with pay-TV operators and content providers to help monetize time-shifted and linear video delivered to any screen, at any time. BlackArrow’s market leading advertising platform and data solutions offer flexible ad models that are enabling next-generation advertising in millions of homes around the world.”

Ranger most recent served as as senior business development manager of video software and solutions technology at Cisco, leading business development and account management efforts for strategic accounts such as AT&T, Verizon Communications, Cablevision Systems, Shaw Communications, Rogers, and Cox Communications.

Before his Cisco and NDS days, Ranger worked at BSkyB, where he helped the company introduce interactive TV capabilities in Europe. 

Photo credit: The TV of Tomorrow Show. 

BlackArrow has hit its first European target -- Virgin Media, the U.K.’s largest cable operator.

The advanced ad firm and the MSO have struck a partnership to insert ads into video-on-demand content that's made available on Virgin Media’s QAM-based set-top boxes, including its new TiVo-powered hybrid QAM/IP platform, as well as mobile devices that support the operator’s authenticated TV Anywhere service.   

The win is BlackArrow’s first in Europe, and comes about three months after the company announced it had  expanded into the region and opened an office in London.

The agreement with Virgin Media, an MSO acquired last year by Liberty Global, will give BlackArrow the potential to reach about 5.3 million more set-tops/TV screens, and a broader range of IP-connected devices that are outfitted with the cable operator’s app.

With the addition of Virgin Media, BlackArrow estimates that its platform will have a reach of more than 37 million homes, a figure that also factors in deployments with Comcast, Time Warner Cable, Bright House Networks, and Rogers Communications.

The win with Virgin Media “solidifies our expansion strategy in Europe…it’s a true multiscreen deployment,” said BlackArrow president Nick Troiano, who is also assuming the duties of CEO following the recent resignation of Dean Denhart.

Troiano said BlackArrow and Virgin Media expect to reach commercial deployment of the new dynamic advertising insertion platform during the first quarter of 2015, starting at the set-top box, followed by an expansion to Virgin Media’s TV Anywhere service.

“We are excited to be partnering with BlackArrow. Working with them will allow us to offer more efficient and flexible ad models to better support the changing needs of our advertisers and broadcast partners,” Scott Kewley, Virgin Media’s director of digital entertainment, said in a statement. “We look forward to exploring these advanced initiatives in 2015.”

Advanced advertising company BlackArrow announced Tuesday that CEO Dean Denhart is stepping down after seven years in the role, and that company president Nick Troiano will be assuming Denhart's duties. 

Under Denhart (pictured), BlackArrow has secured dynamic ad insertion deals with operators such as Comcast, Time Warner Cable, Rogers Communications, Bright House Networks, giving it a reach of more than 32 million homes worldwide. BlackArrow also works with Canoe, the advanced ad J.V. backed by Comcast, Cox Communications, TWC, and Bright House, that recently announced that it has inserted more than 10 billion ads into VOD content since launching that capability about two years ago. 

“Denhart oversaw exceptional growth at BlackArrow and helped establish the company as the leading advertising technology provider to pay-TV operators," said Michael Pohl, chairman of the board at BlackArrow, in a statement. “The Board is appreciative of what he and the executive staff have achieved and the transition of leadership to Nick positions BlackArrow for continued success.”

“Dean has been a key part of BlackArrow’s success and he has positioned us well for the future,” added Troiano, who has served as BlackArrow’s president for the last five years. “The dynamics of the pay-TV advertising industry are changing and I’m excited to lead BlackArrow into our next chapter of growth.”

Update: In an interview, Troiano said Denhart and the BlackArrow board had discussed the timing of his transition out of the company so he could pursue other things. Denhart, Troiano added, will remain an advisor to BlackArrow and help wtih the transition. 

Earlier this year, industry sources said BlackArrow company was working with advisors to explore potential “strategic options” (subscription required), including a possible sale, for the advanced ad firm, which originally targeted set-tops boxes, but has been branching into advertising systems for IP-connected platforms. BlackArrow’s future position, particularly when it comes to IP-delivered video at Comcast, came under some question in March, when the nation’s largest cable operator acquired FreeWheel.

Although BlackArrow has historically focused on QAM-based set-tops, it has the ability to insert ads on IP-based platforms as consumers continue to gravitate viewing on devices like tablets. “We do both today for pretty much all of our customers,” Troiano said. But he said the bulk of the volume of dynamic ad insertion for VOD in cable footprints is still on the set-top box. “QAM-based based set-top box VOD far outstrips any kind of VOD viewing in the home [versus] other types of devices and platforms.” 

BlackArrow has been seeking other growth paths for its dynamic ad insertion management and campaign platform. In September, the company expanded into Europe and opened an office in London that will also serve as the home of a data center for the market.

“International expansion is a big opportunity for us,” Troiano said, noting that operators in Europe and other countries are “slightly behind” the U.S. when it comes to VOD monetization.  “We have some significant announcements coming very quickly about our growth there.” 

Setting it sights on growth opportunities, advanced ad company BlackArrow has expanded into Europe and openened an office in London that will also serve as the home for a data center for the market.

BlackArrow said the new facility will enable it to dedicate resources to the European TV and ad market as it finds new customers for a dynamic ad insertion management  and campagin platform aimred at cable operators, telcos, satelite TV providers and OTT services.

BlackArrow, which announced the expansion ahead of the IBC show in Amsterdam, has five people dedicated to sales support for Europe (it has about 115 total employees), and plans to expand the London office and invest in additional local support offices in the region, according to a company spokesperson.  Noorez Nasser, senior director, European accounts, is heading up efforts in the region.

“While each country is unique, all pay-TV providers share a similar goal of delivering the best possible TV services to their customers and partners,” said Dean Denhart, CEO of BlackArrow, in a statement. “Our expansion into Europe will further enable us to deliver regionally optimised solutions to support the growing demands of our international customers.”

BlackArrow’s currently deployment base spans 32 million homes in North America with Comcast, Time Warner Cable, Bright House Networks and Rogers Communications.

The new focus on Europe could give BlackArrow to growth. Earlier this year, industry sources said the company was working with advisors to explore potential “strategic options” (subscription required) for the advanced ad firm.

BlackArrow has added a component to its advanced ad system that will enable its pay-TV and programming partners to set limits on the number of times an ad is seen by a unique household or device regardless of whether those ads are being delivered inside a live video feed or in an on-demand stream.

That new feature, called “audience-based frequency capping,” will be offered for dynamic ad insertion systems (DAI) and have multiscreen in mind, as it’s been built to support new IP-connected set-tops and devices as well as older QAM-based boxes, BlackArrow said.  

BlackArrow said it’s introducing the ad capping feature as more and more video is delivered to a broadening range of screen types, making it more challenging for advertisers to control the number of times a viewers is exposed to a specific ad. Without those controls, the ad runs the risk of overexposure and a reduction in the overall effectiveness of its message.  

And repeating an ad over and over is, of course, annoying to the viewer as well. BTIG analyst Richard Greenfield recently noted in a blog post (registration required) that the relatively heavy (and mostly un-skippable) ad loads within authenticated video from multichannel programing video distributors (MPVDs) is often made worse by ad repetition.

While Internet-based video has historically used cookie-based systems to keep advertising frequency in check, BlackArrow’s new system can now apply such controls not just for video delivered to Web browsers, but video that is shipped to mobile apps and set-top boxes, explained Chris Hock, BlackArrow’s senior vice president of marketing and business development.  BlackArrow said it has developed what amounts to a “server-side cookie” to manage ad viewing frequency policies.

Hock noted that the new feature works in conjunction with BlackArrow Audience, a platform that captures and manages data down to the device level.

He said there’s no rule-of-thumb on how programmers and advertisers might want to cap how many times a particular ad is seen by a given household or unique device, but noted that the feature does give them the flexibility to set those frequency limits by the day, a week, a month, or even throughout the entire life of an ad campaign.

BlackArrow isn’t outlining where the new ad-capping feature is being rolled out, but “at least one customer is testing the solution right now,” Hock said.

BlackArrow’s announced MVPD customers including Comcast, Time Warner Cable, Bright House Networks and Rogers Communications. With the recent addition of Bright House, which is deploying VOD dynamic ad insertion in Indianapolis, BlackArrow’s deployment base covers almost 32 million homes.

BlackArrow said it has morphed its dynamic ad insertion (DAI) to support Nielsen’s On Demand Commercial Ratings (ODCR), a method of viewership measurement that Comcast is testing to enable advertisers to dynamically splice in fresh spots into recently aired TV shows as well as other prior episodes in the current TV season.

One aim of ODCR is to enable the measurement of binge-viewing of current seasons of shows while still giving advertisers the opportunity to insert fresh spots into the ad load. As  BlackArrow points out, most existing national ad deals include up to three days of viewing contribution (known as C3), but that this new approach will allow for current commercial loads to be inserted into older episodes of the same program on-demand, extending the opportunity to monetize older content.

Comcast has conducted or is conducting small ODCR technical trials with NBCUniversal, ABC, and CBS.

BlackArrow said its advanced ad software, currently used for DAI on set-top boxes, now reaches 30 million homes.  Comcast, Time Warner Cable and Rogers Communications are among its announced customers.

“VOD has quickly become a key platform for TV audiences – especially for the viewing of primetime TV shows,” BlackArrow’s Dean McCormick said, in a statement. “BlackArrow’s support of Nielsen’s On Demand Commercial Ratings provides our customers another valuable solution in their efforts to build a sustainable on-demand TV business model for themselves and their affiliates.”

“At a time when consumers expect content to be available on multiple screens whenever they want it, Nielsen is developing solutions to help our clients further monetize their content and maximize the value of their business models,” added Brian Fuhrer, SVP, Nielsen. “BlackArrow works closely with many of our clients to extend the value of their content.”