New York — Time Warner Inc.’s AOL announced today in one of its biggest advertising pacts since the unit’s shake-up as the sole representative of Verizon Communications Inc.’s major advertising provider for its online and Mobile Web properties.
The deal anticipated to be announced on Monday, an AOL executive said, comes amid Time Warner’s ongoing talks to merge AOL with Yahoo Inc. to rival Microsoft Corp.’s estimated $42 billion offer to buy Yahoo.
Verizon will purchase Platform-A’s sales force, besides its complete range of ad-serving, targeting, and inventory management capabilities for display, mobile and video advertising services.
“Platform A is the most important feature of a reorganization of the once great Internet division responsible for generations of first time Internet surfers.”
Under the terms of the agreement, Platform-A’s diversified services will be the only sales organization that can drive the management and monetization of Verizon’s online and mobile advertising.
Verizon will carry-on to use Platform-A’s mobile ad serving platform, “Third Screen Media,” to manage the sale of its mobile web advertising. Third Screen Media’s futuristic mobile advertising options include geographic, demographic, and content targeting, display, and sponsorship opportunities on Verizon Wireless’ portal, sections and article Web pages. The Verizon ad network is accessible to brands and agencies longing to buy advertising on Verizon Wireless Mobile Web pages.
“We are delighted to have the opportunity to work with a great partner like Verizon to manage and monetize their online and mobile advertising inventory,” said Lynda Clarizio, president of Platform-A. “As more and more wireless users prefer the Verizon make than any other, besides Verizon having the speediest fiber optic Internet service in the country, we look forward to helping marketers reach the right people in engaging and measurable ways.”
The Verizon agreement is considered as a success for AOL’s Platform-A advertising unit, as deal makers at Microsoft, Yahoo and AOL jostle to take a bigger stake in the business of selling display advertisements.
“Verizon Communications remains firmly committed to providing its subscribers with the most relevant, innovative and content-rich experience whether through the Internet, or through a mobile handset,” said John Harrobin, senior vice president of digital media and marketing, Verizon.
“We found that Platform-A’s blend of advertising resources permitted us to take advantage of the industry’s best publisher solutions to maintain this commitment, while providing the greatest overall value for our inventory. For over a year now, we have been using Platform-A’s Third Screen Media, mobile ad serving platform, and they have performed extremely well in connecting large brand advertisers with our mobile network and educating the industry about mobile marketing.”
However, the timing of the announcement anticipated on Monday is ironic as Verizon sued Time Warner Cable Inc. last week accusing the majority-owned cable TV operator of false advertising related to Verizon’s FiOS high speed Internet and television service.
“The Verizon ad deal, whose price was not disclosed, has an increasing base of millions of Verizon Internet and Verizon Wireless subscribers.”