AOL Is Verizon’s $4.4 Billion Bet On Mobile Video

Verizon-Wireless-e1421944641833To Wall Street, Verizon’s surprise $4.4 billion offer for Internet stalwart AOL is all about ad tech. The market for mobile advertising is booming, with total revenues expected to jump 61% this year to $68.7 billion, according to eMarketer.market for mobile advertising is booming, with total revenues expected to jump 61% this year to $68.7 billion, according to eMarketer.

Verizon can now take a decent bite of that by controlling AOL’s programmatic ad platform ONE, which helped AOL take 2.1% of the $51 billion U.S. digital ad market in 2014, a share which Verizon no-doubt would like to see grow.

Verizon is taking advantage a crucial trend to to avoid the “dumb pipe” fate that has befallen so many carriers: the world is watching more and more video on mobile devices.

A third of all online video views in the first quarter of this year took place on tablets and smartphones, which was more than two times what it was the year before, according to video analytics firm Ooyala. And that the trend is accelerating, thanks to faster 4G networks and crisper HD smartphone screens. Read full article here.