The web-based advertising world got a bit of a shake-up yesterday with the formation of 2CanMedia Inc from the combination of two other companies run by the founder of a third. The coming- together will form what they claim is the largest web advertising representation company. Eisenberg Communications Group Inc and WebRep LLC will become part of 2CanMedia along with Ryan Steelberg, the co-founder of Imgis Inc and man behind the deal. Steelberg has licensed Imgis’ AdForce technology and will combine that with ECG and WebRep’s expertise and client base of web publishers. Under the agreement, Steelberg is paying $7m each in 2CanMedia stock for ECG and WebRep and is also raising $8m in a private placement, which is well on the way to being complete. Steelberg will become 2CanMedia’ interim chief executive – a full-time CEO is being sought, as well as a CFO. Jeff Eisenberg, president of ECG will be VP business development and Michael Hess and Neil Monnes, who run WebRep, will be VP advertising sales and VP marketing respectively. 2CanMedia says it will be site-focused, by which it means it will seek to attract premium sites that want special treatment and a dedicated sales force. Companies can pay a one-off $3,000 signing-on fee for such treatment, says Monnens. The company will also handle those sites that can be grouped and sold in categories on a network. ECG counts among its clients Frommers/Macmillan Publishing, CitySearch and Motor Trend, while WebRep brings National Geographic, Entrepreneur Magazine and Kiplinger Online to the party. Woodland Hills, California-based 2CanMedia says it will have a three-tiered approach. Most of the revenues will come from the interactive sale division, which will sell the ad space. The market research division will use the AdForce technology and other tools to leverage the market data it compiles and sell reports based on that data. Thirdly, 2CanMedia will launch MediaPlus, a division concentrating on demographic and locale- based ad sales.
