- Posted May 9, 2014 by
AOL’s Gets Convertro for $101 Million
In a move to branch out and reinvent itself, AOL has acquired Convertro Inc. to boost its advertising muscle.
Convertro is a leading provider of a multi-touch attribution modeling technology that enhances brands and agencies, and brings much to the table for AOL.
According to the Wall Street Journal, the payment of $101 million will be made as $89 million in cash, $2 million in converted stock awards, and a potential $10 million as goals are met over a 17-month period.
Marketing organizations and agencies use Convertro to maximize return on advertising investments across online and offline media channels. They dig deep into each channel, its format, and audience segment to extract detailed insights which can be gleaned from video created using WizMotions or similar sites.
This acquisition by AOL follows its launch of ONE, a programmatic enterprise platform to drive strategic insights for brands and actions across all screens, including linear and connected TV.
Convertro brings to AOL the ability for customers to manage their own journey across the purchasing platform to make the experience more efficient and effective.
Founded by current CEO Jeff Zwelling, David Feldman, Gary Gurevich, and David Perez, Convertro is based out of Santa Monica, CA and has offices in New York and Israel.
MHS Capital, Bessemer Venture Partners, and DAG Ventures are a few of the investors who have pumped $5 million into Convertro, helping them land big contracts from Live Nation, Comcast, and Intuit.
“AOL is making advertising easier for marketers and agencies, as well as publishers,” said Tim Armstrong, Chairman and CEO, AOL. “Our agreement to acquire Convertro demonstrates our continued commitment to bring efficiency to the advertising industry through automation and machine learning. Our focus on the AOL Platforms business has positioned AOL for growth as the trend around programmatic advertising continues to transform the industry.”
“Convertro’s vision has always been to provide its clients visibility and recommendations on how their advertising investment works and how to improve that return on investment,” said Zwelling. “We believe the future of attribution is applying this data to programmatic buying and automated analysis. Integrating with AOL is going to bring our leading technology into the hands of some of the world’s leading and biggest advertisers and we couldn’t be more excited!”