AOL Launches ‘AOL On’ To Attract More Video Ad Dollars
AOL (NYSE:AOL) has launched AOL On, a new online video platform which will offer premium, curated video content across 14 content channels which include food, business, entertainment, style, tech, travel, health, etc. With AOL On, AOL aims to bring all of its video offerings under one umbrella which is supported on multiple platforms and devices including web, desktop, tablet, mobile and connected TV devices. [1]
AOL sets its sights on the U.S. video advertising market
AOL On’s video hub will enable consumers to discover and view high quality, premium videos in multiple genres and categories they might be interested in and also allow them to follow celebrities and their shared content on the network through playlists.
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With this move, AOL is targeting the online video advertising market which is expected to reach $7 billion in the U.S. by 2015. By offering premium, curated content in a single hub, AOL aims to generate more advertising revenue from leading advertisers than other competing video platforms, which feature user generated content with little to no curation.
AOL competes in the online video advertising market with the likes of Google (NASDAQ:GOOG), Facebook, Microsoft (NASDAQ:MSFT) & Yahoo (NASDAQ:YHOO). Display ads on its own properties currently account for a third of AOL’s $16 Trefis price estimate, which stands nearly 30% below its market price.
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