AOL Inc. is boosting its stake in the online video advertising space by purchasing Adap.tv, a leader in video advertising technology, for $405 million in cash and stock. The deal is expected to close in September.
Adap.tv’s programmatic ad platform facilitates real-time bidding as well as premium upfront and spot buys. The platform also works across media devices — Web, mobile and connected TV. According to Adap.tv, 10 billion video impressions run through the platform monthly.
AOL CEO, Tim Armstrong said in a statement, “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 is positioned squarely in front of the huge opportunity these trends are presenting.”
Adap.tv CEO, Amir Ashkenazi, followed up stating, “We believe that most TV advertising will soon be traded programmatically on platforms like ours. The combination of AOL and Adap.tv accelerates our vision of efficient and effective TV and video advertising.”
In May, AOL announced a number of efforts to help put online video on equal footing with TV, including a partnership with Nielsen designed to help media buyers compare digital video to TV and make the online video ad buying comparable to TV buys.
The video ad market is expected to grow 41% this year to hit $4.14 billion according to eMarketer.