AOL Takes No. 1 Spot For Online Video Ads

AOL, an online company many had given up for dead, is making a comeback. It recently acquired Adap.TV, a company that automates the purchase of video ads. And in September, it topped Google in one category: it had the most video ads watched, with 3.7 billion views.

Copyright © 2013 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.

DAVID GREENE, HOST:

Now, even with that positive news, Google is still not the leader in online video advertising. That would be AOL. The Internet pioneer leaped over its competitors last month, to take the No. 1 spot. NPR's Laura Sydell explains how that happened.

LAURA SYDELL, BYLINE: The secret to AOL's video advertising success - acquisition. Last month, AOL took ownership of Adap.TV, for which it paid over 400 million bucks. Clark Fredrickson, of the research firm eMarketer, says Adap.TV sells video advertising packages that appear on sites all over the Web.

CLARK FREDRICKSON: A video over the banner of your local newspaper's website, for example.

SYDELL: Or those 30-second ads that stand between you and that sports clip you want to watch on ESPN's website. Adap.TV was just behind Google in video ad views before AOL took it over. Now, Comscore tracked the combined companies with 15 percent more views.

AOL CEO Tim Armstrong is banking on Internet video. AOL has also got some A-list celebrities producing Web series for the company - like Sarah Jessica Parker.

SARAH JESSICA PARKER: It's called "City Ballet."

SYDELL: eMarketer predicts online video ad spending will double by 2016, to over $8 billion.

Laura Sydell, NPR News.

Copyright © 2013 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

Support comes from: