AOL has purchased $405 million for Adap.tv, the video advertising service which has gained custom from some of the world’s leading brands. Video advertising has been seen as an ever-more important channel for various organisations, with the growing level of tablet and smartphone use being one of the factors behind this. The company has seen a growth of more than 100% in revenue year-on-year recently and was behind more than 26,000 global ad campaigns last year, with ads showing on almost 10,000 different websites.
Programmatic Video Buying
Tim Armstrong, CEO of AOL said “The Adap.tv founders and team are on a mission to make advertising as easy as e-commerce and the two companies together will aggressively pursue that vision.” Armstrong identified two key video trends – the movement from TV to online video and the change from manual transactions to “programmatic media buying” as being pivotal to the acquisition being made.
An End-To-End Solution
AOL has focused greatly on premium content and publishers over recent years, with the AOL On Network coming second in terms on US monthly content video views for much of the last 12 months. AOL can already offer premium production, content aggregation and syndication platforms as well as world-class video CMS facilities and can now offer a programmatic video platform too. It’s been predicted that most TV advertising will be traded on platforms such as the one now being offered by AOL. It’s said that the newly-acquired service will be operated separately from other parts of AOL’s video services as well as part of an end-to-end solution being offered to publishers and advertisers. It’s hoped that Adap.tv will become a one-stop service for companies looking to place their budgets behind digital ads. More and more people are viewing ads on internet-connected mobile ads all the time, explaining why Adap.tv attracted such a large sum of money from AOL itself.