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BizReport : Internet : December 11, 2006
AOL in Buying Mood?
A lot of press has been given to the buying of social networks lately. YouTube, Facebook and MySpace led the way. But very little has been mentioned regarding the buying and selling of ad networks, the older cousin of the social network. Time Warner’s AOL could be first in line to start the bidding.
"Ad networks are going to be hugely important to the way you aggregate all your station affiliates. All that quantity needs to be qualitatively optimized," said Shelly Palmer, consultant and author of “Television Disrupted” (via AdAge).
AOL already owns Advertising.com, a major player in ad networks. The network helped AOL boost revenue 46% in Q3 ($151 million). That brings this year’s revenue to $479 million. Roughly 26% of that is because of Advertising.com.
So, why would they want another ad network?
Because online video is a huge player in today’s online world and according to execs with AOL ad networks are a great way to harness the beast.
"Google is the first and biggest in the tech space, but the second and third are Yahoo and AOL, with Advertising.com being somewhat of a unique third-party player,” said Time Warner Chief Operating Officer Jeff Bewkes (via AdAge). “We have real advantages monetizing long-tail fragmented pages should sites like MySpace and Yahoo have to turn to us to sell on display."
Tags: AOL, social network
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