Feeds

Internet giant you may still remember (AOL) gobbles vid ad biz Adap.tv

Blows $322m to become 'number two' to Google's YouTube

Beginner's guide to SSL certificates

AOL has bought advertising company Adap.tv in a bid to future-proof its online video services.

The internet giant claimed the acquisition will make it the second biggest player in the online "video space", presumably behind Youtube.

Adap.tv specialises in programmatic advertising, which allows media buyers to avoid the bulk purchase of ad space from Mad Men-style salesmen. Instead it uses an automated system that allows sophisticated targeting and real-time analysis of any ad campaign's impact.

According to Adap.tv, one out of every eight video ads is bought using their system.

Tim Armstrong, chairman and CEO of AOL, told CNBC News: "Three or four years ago most people thought that AOL wouldn't be around at this point. Today we are announcing a deal which will make us the number two video player in the marketplace and essentially double AOL's revenue in the video space and bring us up to 150 million unique visitors in video."

He added: "The way people think about Google for search, you could think about adap.tv for video."

AOL also posted positive second-quarter results. Although the firm's second-quarter profit of 2013 fell 97 per cent year on year to $28.5 million, it put the change down an earlier $1bn deal to sell patents to Microsoft.

Revenue grew by about two per cent to $541.3m, up from $531.1m in the same period last year.

In a canned statement, Armstrong added: "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."

Adap.tv will operate independently as a part of AOL's video organisation. AOL paid $322m in cash and about $83m in AOL stock to slurp the ad firm. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
prev story

Whitepapers

Free virtual appliance for wire data analytics
The ExtraHop Discovery Edition is a free virtual appliance will help you to discover the performance of your applications across the network, web, VDI, database, and storage tiers.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.