For marketers looking to
expand beyond Google and Facebook, Verizon’s new subsidiary, Oath, will offer
improved targeting and measurement. Through its merging of Yahoo and AOL, Oath
will benefit from the advertising capabilities of both companies as well as
Verizon’s subscriber data.
The focus on content
brands, such as HuffPost and Tumblr, will set Oath apart in the digital
advertising space. These content brands will soon be “automatically available
on the ‘decktop’ of Verizon subscribers’ phones”.
Oath plans to focus its
growth beyond the United States by targeting key markets and possibly acquiring
more companies. Tim Armstrong, CEO of AOL, stated the goal is for Oath to
double its consumer base by 2020.
Verizon bought AOL in
2015 for $4.4 billion and recently acquired Yahoo for $4.5 billion. eMarketer
estimated Verizon and Yahoo will generate a combined $4.7 billion in digital ad
revenue this year.
News coverage around
Verizon’s acquisition of Yahoo has focused primarily on the resignation of
Marissa Mayer as well as Yahoo’s plans to lay off 2,100 workers. The Wall
Street Journal reports that most of the job cuts will occur where there are
duplicate roles and teams.
From the marketing
perspective, however, Oath represents an opportunity for digital advertising to
grow.
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