AOL Looks To Make Money From New Premium Ads For Mobile
AOL (NYSE:AOL) has launched a series of new display ad units — Devil Ads — tailored for mobile phones and tablets. It had earlier launched these rich interactive ad units for the web, but now it has made them available for mobile devices to target the rapidly growing mobile advertising market, where most tech majors including Google (NASDAQ:GOOG) and Facebook (NASDAQ:FB) are trying to get a jump on. [1]
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The new premium mobile ads come in various formats and expand on clicking to take up the whole screen and provide a smooth, although a little intrusive, experience to the user, which results in increased effectiveness and a greater ROI for the advertiser.
The ad formats are optimized for various screen sizes and resize automatically to deliver dynamic ads within limited screen real estate. It is targeted at both the mobile and tablet markets. AOL plans to not only use this technology across its own mobile properties, but also to license it to other publishers to generate additional revenue.
Display and search ads currently account for almost all of AOL’s $18 Trefis price estimate, which stands nearly 30% below its market price.
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