Washington - Aol is one of the original online content providers.
Verizon Communications, Inc. now views Aol Advertising, an Aol company,
as a company Verizon can use for future television advertising.
Verizon Communications might pay $4.4 billion to buy Aol if the
acquisition is allowed to be completed by the Federal Trade Commission
(FTC). Verizon wants to increase its personalized advertising on the
over-the-top, online, and stand-alone video service Verizon plans to
launch later this year. Now, commercials seen on over-the-top services
(OTT), which include Hulu, Sling TV, and HBO, are often repetitive and
not well targeted, particularly when compared with other online venues
such as Facebook Inc.
Verizon wants to use a specific
technology Aol has. That technology will allow real-time bidding of
advertising space by advertisers as viewers tune in to OTT services.
Basically, the same television show, seen at the same time, on Verizon's
OTT service in two different homes, might have different commercial
advertisements. Advertisements that are only relevant to the viewers
preferences. The advertising industry views this way of putting the
advertisements (commercials) of products that are based on what the
individual website address normally searches for as a better way of
buying and selling advertisements. This, so-called "programmatic"
buying is becoming the most effective way for online advertisements to
be bought and sold. See also,www.businessweek.com.
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