AOL Pushes Mobile Ad Monetization With Mobsmith Partnership

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AOL’s (NYSE:AOL) decision to partner with mobile advertising platform Mobsmith is an indication that the company is finally slowing down on acquiring digital content. [1] The company has sufficient digital assets to offer, and the task now is to target this content as specifically as possible to the right demographics. As the year progresses, one can expect more mobile-based target advertising by struggling players like AOL and Yahoo (NASDAQ:YHOO).

See our complete analysis for AOL’s stock here

Mobsmith To Provide Further Ad Optimization

AOL’s partnership should enable it to optimize its page views further as Mobsmith’s technologies help the company in effectively targeting its display ads to the right demographics. Mobsmith’s capabilities have already been integrated into AOL’s own ad platform – AdTech. AOL’s margins have suffered last year as the company made big investments on content acquisition, and this partnership might be a start in trying to improve profitability.

We have a revised price estimate of $14 for AOL stock, which is roughly 8% below the current market price.

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Notes:
  1. AOL partners with Mobsmith to drive mobile display ads, GoMo News, 30th Jan 2012 []