AOL Buys Adap.TV

Adap.TV is a massive video network and exchange platform. By purchasing Adap.TV, AOL has given itself a tool that allows businesses to buy and sell digital ads in real time. In recent years, AOL have competed with Google and Yahoo for advertising revenue – Adap.TV and the platform’s capabilities will surely help them gain a stronger stake in this highly competitive market.

AOL is rich in its merger and accusations history, so it made sense when AOL bought Adap.TV for $405m. This acquisition is consistent with Tim Armstrong’s strategy of simplifying ad technology. It is said that Armstrong wants AOL to be an online advertising powerhouse and its well on its way to doing exactly that. With the appointment of Susan Lyne as CEO of AOL’s brand group, it’s a sign of things to come for AOL. Lyne has talents in aggressive revenue growth which is what AOL have been concentrating on in the last 3 years.

The video ad industry is expected to grow rapidly in the next 12 months with Facebook video ads coming this fall and companies like Viddyad making it easier for businesses and individuals to produce their ads. Online users will see a lot more video content in the next year but more significantly, they will see better quality content.