AOL has bought video ad platform Adap.tv for $405m, as the internet giant looks to boost its ad targeting and appeal to more advertisers across its roster of websites. Watch this Bloomberg video showing Armstrong commenting on the deal here: California-based Adap.tv provides programmatic digital video advertising that brands can target to a specific audience. […]
AOL has bought video ad platform Adap.tv for $405m, as the internet giant looks to boost its ad targeting and appeal to more advertisers across its roster of websites.
Watch this Bloomberg video showing Armstrong commenting on the deal here:
California-based Adap.tv provides programmatic digital video advertising that brands can target to a specific audience.
Tim Armstrong, CEO of the online media giant, said the acquisition will help the company improve its ability to integrate advertising with video content. He called it “the most important growth segment in our industry.”
“Two trends are prevalent in the video space right now – the movement from linear television to online video and the shift from manual transactions to programmatic media buying,” Armstrong said in a statement. “Adap.tv is positioned squarely in front of the huge opportunity these trends are presenting.”
Adap.tv will operate independently as part of AOL’s video organization which is led by Ran Harnevo, SVP, Video, and be included as part of the overall solution offered by AOL Networks to its publisher and advertiser partners.
“At Adap.tv, we are focused on building the most important business within the most important category in digital advertising,” said Amir Ashkenazi, CEO, Adap.tv. “We believe that most TV advertising will soon be traded programmatically on platforms like ours. The combination of AOL and Adap.tv accelerates our vision of efficient and effective TV and video advertising.”
Nick Reid, managing director of online video advertising company TubeMogul, who is a partner of Adap.tv, commented on the move: “AOL’s acquisition of Adap.tv is a positive move for us – reaffirming TubeMogul’s sole efforts on technology and brand advertising and is significant from an investment perspective.
“Automated buying that puts advertisers in control has always been distinct from ad networks and media arbitrage plays. This is proven by Adap.tv’s higher relative valuation in terms of revenue above IPO’s of its competitor ad networks”
AOL Networks, under the leadership of recently named CEO Bob Lord, partners with publishers, advertisers and agencies. AOL Networks brands include Advertising.com, The AOL On Network, Be On, ADTECH and Pictela.
The company posted second-quarter results that bested Wall Street estimates on revenue and earning, and raised guidance for full-year results.
AOL’s second-quarter profit fell 97% to $28.5 million, or 35 cents a share, from $970.8 million, or $10.17 a share, a year earlier. The company attributes the change to its $1 billion deal to sell and license patents to Microsoft.
Excluding the one-time event, AOL said net income and per-share earnings grew “significantly,” according to its earnings statement.
Revenue edged up 2% to $541.3 million, compared to $531.1 million a year earlier.
http://adap.tv
