What Millennial Media Acquisition Method for Future Mobile Ad Buying
AOL recently purchased Millennial Media, an advertising company that places ads on mobile devices. Recent financial performance of Millennial Media will make marketing managers wonder why AOL would do this. If you are a stock investor, here are some stuff you should know about the acquisition and just what this means for the future of AOL’s advertising division.
Millennial Media
Millennial Media is the leading mobile ad marketplace which was recently acquired by AOL. These mergers and acquisitions are common in most industries, as you know. This marketplace simplifies mobile for top brands, app developers and mobile web publishers. The data and technology assets possessed through the company enable advertisers to achieve target audiences at scale. They also drive monetization for publishers and developer partners. This really is probably the most attractive monetization platforms for any app developer. That’s the reason Millennial Media gives AOL’s international mobile capabilities a lift, which means this could be one reason for the acquisition move.
Poor Stock Portfolio
Millennial Media launched in 2006, but did not go public until its initial public offering of stock this year. The organization warned that it has not been profitable, and noted it might not be. Millennial Media finished its second quarter in 2019 towards the bottom 2% from the Nyse listed stock, and stock lost almost 40% in value from 2019 to 2019. This is unusual for technology companies, but Millennial Media remains important in the mobile advertising industry, especially so since their recent business collaboration with AOL.
Fresh Leadership
Millennial Media was upfront about its poor financial performance in 2019. Rather than still repeat the same strategies and risk greater decline, they changed gears by electing new leadership. Jason Kelly was named President of Managed Media with a top-notch CEO Michael Barrett. The two previously worked together at Admeld, which was successful enough to become bought out by Google in 2011. Changing top leadership is a very common method for businesses to alter strategy and look towards the future.
Growing Its Capabilities
Despite poor stock performance in 2019, Millennial Media could acquire Nexage the same year. Nexage was a privately owned technology firm based in Boston, Massachussetts. The company is really a leading provider of Real-Time Bidding (RTB) technology that assists in automating the selling and buying of mobile advertising. This acquisition gave Millennial Media a unique logistics management solution called Supply Side Platform (SSP), allowing publishers to reveal impressions to classic networks for example Facebook and Google. Additionally, it connects Millennial Media to 225 programmatic buying networks, monetizing area of the advertising process on the global market.
Evolving As A Company
AOL’s business strategy is different significantly through the years. It started like a leading Internet Service Provider, and today is responsible for growing and publishing digital content on a variety of websites. Despite no more being a household name, AOL has stayed in business by using the market of digital advertising. Purchasing Millennial Media allows AOL to continue to evolve with the digital market by bringing talented programmers for their team.
Growing Their Customer Base
By buying a current business named Millennial Media, AOL was able to grow its customer base almost overnight. Millennial Media’s mobile ad network includes over 1 billion users in over 65,000 apps globally. Including over 120 global networks for example Google’s Admob, Facebook’s Audience Network and iAd. Verizon took an identical stance on growing its subscriber base and purchased AOL in 2019, absorbing the entire customer base. This tactic is not new to the corporate world, hence the phrase, “should you can’t beat them, join them.” There is now an enormous customer audience for these combined technology companies.
Programmatic Marketplace
Millennial Media has among the industry-leading tech and knowledge platforms. This can help publishers and marketing professionals reach audiences across a multitude of mobile access points. It’s through this programmatic marketplace the company offers managed services and programmatic solutions for businesses. This obviously impacts the bottom line for potential investors like yourself. Additionally, this marketplace includes a wide open exchange, smaller private marketplaces featuring for direct buys in addition to group buys. No matter what mobile kind of ads a business needs to buy or the way they intend to buy them, Millennial Media’s programmatic companies are one of the best places to get it done.
Marketing Managers could study from Millennial Media’s business history in mobile advertising. Despite poor financial performance in 2019, they remained strong enough in the industry to be bought with a leading digital content company. Equipped with a bigger subscriber base, they’re poised to reach an astounding number of consumers in the coming years, and that’s why a lot of are deciding to buy and sell stocks of the company. Continuing to evolve with the digital advertising industry make Millennial Media a company marketing managers may wish to emulate or pair up with in upcoming digital advertising ventures.