Verizon Buys AOL

The Content, Network, And, Arms Dealer Come Together With Merger

The planned acquisition of AOL by Verizon for $4.4B is more than just the acquisition of the programmatic ad platform.  Verizon is making the big shift to disrupting digital businesses for a few reasons:

  1. Shift from selling products and services to delivering brand promises.  In order to deliver on their brand promise they need to deliver at the smallest increment of an ad. This requires new programmatic ad technology that Verizon doesn’t have nor can they scale up on their own.
  2.  Enter the battle for mass personalization at scale. The goal – deliver continuity of experience across ubiquitous channels.  Using context from location data, role, relationship, time, sentiment, and business process.  The additional context signals improve the ability to deliver on right time relevancy.
  3. Build on the content strategy at Huffpo.  Use content and context to improve audience segmentation and targeting.

Bottom Line: Verizon Wants To Build A Verticalized Network Economy

This is the new future where the content (Huffpo), network (Verizon) and arms dealer/ technology (AOL) come together.

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