VERIZON TO BUY AOL FOR $4.4 BILLION

With Verizon agreeing to acquire AOL for $4.4 billion, here are some relevant figures about AOL’s ad revenues, as well as mobile, programmatic and digital video markets in the US.

AOL’S AD REVENUES, THE FACTS:

AOL advertising market share

AOL took 0.74 per cent market share of the $145 billion digital advertising market worldwide in 2014, according to eMarketer. Google was the worldwide market leader with 31.4 per cent share last year, followed by Facebook with 7.9 per cent.

Mobile advertising worldwide totalled $42.63 billion in 2014, and is expected to increase 61 per cent to reach $68.7 billion in 2015, according to eMarketer. Google owned 38.2 per cent share of the worldwide market last year, with Facebook taking 17.4 per cent share.

In the US, AOL’s share of the $50.73 billion US digital ad market share was 2.1 per cent in 2014, according to eMarketer, down slightly from 2.3 per cent in 2013. AOL’s share of US digital display advertising totalled 3.7 per cent in 2014, as the display ad market increased to $22.2 billion.

The US mobile advertising market totalled $19.2 billion in 2014, and is expected to reach $28.7 billion this year, an increase of 50 per cent, eMarketer estimates.

Digital video

Digital video ad spending totalled $5.81 billion in 2014, according to eMarketer, and will increase 33.8 per cent to reach $7.77 billion this year. 28 per cent of all digital video ads will be purchased via programmatic in 2015, totalling $2.12 billion. In 2016, programmatic will account for 40 per cent of the US digital video ad market. Mobile video ad spending will comprise $2.62 billion this year in the US.

Across the entire US population, adults on average will spend 1 hour, 16 minutes each day watching video on digital devices in 2015, including PCs, tablets, smartphones and OTT devices, according to eMarketer estimates.

In 2015, 153.4 million people in the US will watch TV shows on digital devices at least once per month, according to eMarketer, accounting for 47.7 per cent of the US population. 35 per cent of the population – or 112.5 million people – will watch films on digital devices at least once per month in 2015, according to eMarketer estimates.

Programmatic advertising

Programmatic advertising in the US increased 135.5 per cent to reach $9.99 billion in 2014, according to eMarketer, and is expected to grow another 48.9 per cent in 2015 to reach $14.88 billion. That figure will represent 55 per cent of all digital display advertising. By next year, programmatic advertising will reach $20.41 billion, or 63 per cent of the display ad market.

Mobile is driving growth in the US programmatic market, and for the first time will account for more than half of all programmatic display dollars in the US in 2015, or $8.36 billion, eMarketer estimates.