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- AOL's Millennial Media deal highlights rise in automated ad buying
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BI Intelligence. To be blunt about it, just about everybody in the ad business in digital has gotten lazy about formats and lazy about respecting consumers. Armstrong says we're currently trapped in an "invisible prison," where "I need to put up a display ad on a screen, and I need to do it in a generic way that somebody will have an interaction with, and I'll be able to have some generic metric I'll show. Armstrong actually believes ad blocking presents a huge opportunity, as it will force advertisers and publishers to figure out new ways to reach users where they actually are - on their phones.
In fact, he thinks mobile advertising will be way bigger than digital - or even TV and print in their heydays. The reason is, every other form of advertising has had a level of aggregated targeting against it.
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Mobile over time will become more and more personal. Generally, people are really afraid of models when you go from aggregated to individual. But the reality is, variable individual pricing over time to hundreds of millions or billions of people, which will eventually happen, will allow advertisers to understand the nature of each consumer.
They will pay more over time to have that understanding. Apart from AOL, which is of course his "favorite company," Armstrong expressed admiration for Vice, Buzzfeed, Business Insider, and other new media companies who have built big brands and audiences out of nothing in a very short time, when nobody else believed content was a good business. He also says not to read anything larger into AOL's decision to spin CrunchBase - a database of company info that was part of TechCrunch - into a separate company, backed by venture investments from Emergence Capital and AOL itself.
Crunchbase is an awesome data brand. What I mean by that is Crunchbase essentially could be the Wikipedia of companies, the LinkedIn of companies. We believe fundamentally it is more of an enterprise than content type play. We wanted to partner with people who had deep enterprise experience," Armstrong told us. We'll continue to be investors in content.
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AOL's Millennial Media deal highlights rise in automated ad buying
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