AOL Will Acquire Adap.TV for $405M
In a surprising move, AOL announced that it has agreed to acquire online video advertising company Adap.TV for $405 million. While AOL has been funding original online video series to help it transition to an online entertainment destination, it will now claim a major stake in video advertising, as well. In the comScore online video rankings for June, the latest available, Adap.TV was the fourth largest online video ad distributor in the U.S., serving 2.2 billion ads for the month, behind only Google sites, LiveRail, and BrightRoll. Of course, AOL is no stranger to online video advertising: AOL was ninth on the list, serving 670.4 million ads on its own videos.
By acquiring Adap.TV, AOL isn’t just buying a bigger chunk of the ad market, it’s also getting a programmatic video ad leader and making a smart investment in the future of programmatic buying. In its press release on the acquisition, AOL notes that Adap.TV is the only platform that offers programmatic buying and selling across all screens.
Adap.TV will continue to operate independently post acquisition. The $405 million purchase price will be made up of $322 million in cash and $83 million in AOL common stock. The acquisition has been approved by the boards of directors for both companies, as well as Adap.TV’s stockholders. AOL expects to complete the purchase in the third quarter of this year.
In a deal reported to be worth $50 million, AOL expands its online video operations with a global video exchange.
Like AOL before it, Yahoo has decided that owning a piece of the programmatic online video ad market is a smart business decision.
The social network is rumored to be paying between $400M and $500M for the online video platform, and wants to deliver targeted ads.
Audience Path, Adap.tv's programmatic buying platform, now lets buyers execute targeted linear and digital campaigns with one tool.
Pre-roll ad impressions are shooting up, but one AOL exec thinks the format is on the way out. Instead, brands will have to create their own content.
Data is already making a big impact in the online video ad market, and will soon change how video is created and distributed, as well.
The entire online video ad market is overinflated, and AOL paid several times what unprofitable Adap.tv is worth.
Advertisers, get time back to work creatively once freed from manual ad buying, declared AOL execs and partners.
With the Spot On ad format, viewers can take quizzes, read trivia, shop online, and then jump back to the video.
Advertisers can look to Adap.tv's Certified Viewability feature to make sure their ads are getting strong page placement.
Quarterly state of the industry report finds that agencies are increasingly planning TV and online video campaigns together.
Buyers can unify online spending with TV spending by targeting online ads to Nielsen TV audience segments.