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AOL Inc. share price up, seeks to consolidate its positions in the ad industry by offering a one-stop media buying shop

AOL Inc., which runs a global Web services business that provides a variety of brands and offerings, has been reported to be expanding its reach beyond Web publishing. AOL Inc. announced a system that offers companies a way to automate the process of selling and buying mobile, social media, television and web advertising, becoming the first digital media company, which provides such kind of service.

The new advertising technology platform of AOL provides publishers with the opportunity to sell space on the Web and digital videos using software. The introduction of the new service proves that the company is becoming more focused on the media business and is seeking for different and beneficial strategies that will help it consolidate its positions in the ad industry. AOL Inc. managed to post a 1.6-billion-dollar ad revenue last year, marking a 14% increase from the ad revenue reached in 2012.

Analysts believe that ad buying technologies will become more and more popular over the years yet to come. As reported by the Financial Times, the Chief Executive Officer of AOL – Mr. Armstrong also shares this opinion. He said: “The tipping point of these things is not that far off.”

According to the latest estimates of the research division of IPG Mediabrands – Magna Global – this segment of the business is projected to increase from 12 billion dollars in 2013 to 32 billion dollars in worldwide sales by 2017.

The Chief Executive Officer of the company – Mr. Tim Armstrong explained that these forecasts are exactly why AOL is betting so much on such ad services. Mr. Armstrong said in an interview for Bloomberg: “This will definitely be the fastest-growing part of our business going forward,” and explained that the company is considering to expand its reach in the field.

AOL Inc. surged 3.74% on Wednesday in New York to close the session at $43.83 per share, marking a one-year change of +11.81% and a market capitalization of $3.48 billion. According to CNN Money, the 20 analysts offering 12-month price forecasts for AOL Inc. have a median target of $50.00, with a high estimate of $70.00 and a low estimate of $45.00. The median estimate represents a +14.08% increase from the last price of $43.83.

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