Verizon made and still is making headlines all around the world for its acquisition of once media giant AOL last week. Many were left wondering why Yahoo! didn’t want to grab the opportunity to buy AOL themselves before another company pulls the trigger. Verizon states that ”AOL has once again become a digital trailblazer”, nothing less.
Beside this angle, there could be an overlooked aspect to the deal laying in Verizon’s desire to develop further Internet of Things (IoT) technologies. In their press release, they mention the deal will include integration between Verizon multiple IoT platforms and most likely AOL media content and advertisement technologies. Unfortunately, the declaration did not include further details about this and we will have to wait to get more specific informations.
Beside the prospects brought with its IoT technology, Verizon declared the purchase of AOL was oriented toward creating more integrated spaces in terms of advertisement technologies and digital content that the company will drive into a more complete mobile environment.
The move is intended to help Verizon offering, through digital and video content, a more directly targeted advertisement experience to users, an industry that specialists estimate to be close to $600 billion globally.
Verizon’s Internet of Things capabilities coupled with AOL’s media content offering will help the carrier increase its reach toward users and deliver better targeted advertisements. AOL will provide more spaces to deliver ads, ads that Verizon will more accurately taylor using store beacons, fitness wearables or connected cars.
Verizon is getting as well access to AOL advertisement ecosystem One. One is in fact a fusion of different advertising platforms the digital media company did acquire previously: AOL grabbed programmatic video firm Adap.tv for $405 million, covered its needs for personalization with Gravity at the cost of $83 million, Convertro for attribution ($101 million) and snatched up Vidible for video distribution at the cosy price of $50 million.
Now it would be inaccurate to state it is only startups that talk about the Internet of Things: big corporations such as Verizon, Google and Cisco are actively working on a market many observers say will connect everything in the world and be worth 19 trillion by the close date of 2025!
Verizon has already a IoT segment in its business that it has slowly and quietly been working on since some times now. The carrier has about 15 million IoT connection and got 585 million in revenue for 2014, an increase from 2013 where the segment yielded about 400 million.
Here’s a video where Verizon officials talk about integration of the Internet of Things in the insurance business: