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Burst Media

• FROM: May 2006 |
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• Burst Media
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Internet advertising is the fastest growing segment of the total advertising market. It was worth $12.9bn in 2005 and is forecast to rise to $21bn in 2008. Burst Media is the 16th largest internet advertising sales company in the US and it also has a business in the UK.

Burst manages advertising campaigns and takes a fee out of the money paid to the internet sites. Its network covers more than 3,400 websites which are split up into categories so that advertising can be targeted.

Burst uses its AdConductor software to manage, track and bill the advertising. The software is also sold to third parties.

According to market research group Forrester the internet accounts for onethird of media consumption but only 5% of advertising spend. The advertising spend is dominated by television but the more focused advertising on the internet is likely to eat into television's share.

Burst moved into profit in 2004 and last year it made a profit of $3.4m on turnover of $21.6m.

Early stage investors sold more than half the company when it floated. Burst also raised £1.96m net at 82p a share. The share price has edged up to 87.5p since then valuing the company at nearly £73m.

Burst wants to use its shares to make acquisitions. It plans to expand in Europe. A new product called Burst Direct is being developed to help sell excess online advertising space. On top of this the growth in internet advertising spend will continue to help Burst to grow.

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