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Buying from AOL is a problem for Facebook

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Buying from AOL is a problem for Facebook

According to Verizon, 70 percent of Internet traffic passes through them thanks to its more than 100 million mobile users and connection to cable services, cell phones and televisions. The sum of the two companies creates a social, mobile and advertising monster. In 1985 America Online was founded in the American Union, the company in its first stage embodied the best example of what a medium should be on the Internet New Zealand Mobile Database. Today 30 years later Verizon buys it for $ 4.4 billion. The purchase seems like one more news in the world of the merger of digital companies; however, it implies a major change in the field of mobile content.

With this purchase a new player the size of Google or Facebook has been created. According to Verizon 70 percent of Internet traffic passes through them thanks to its more than 100 million mobile users and connection to cable services, cell phones and televisions. The sum of the two companies creates a social, mobile and advertising monster. According to Tim Armstrong CEO of AOL, the result will be the formation of the largest media platform on the planet.

One of AOL’s strengths is its programmatic ad platform, the size of its digital properties allows it to optimize advertising campaigns for a good number of advertisers, adding this reality to Verizon creates a medium capable of serving the largest advertisers in the world. world Brother Cell Phone List. At the moment the company already serves the needs of 30,000 advertisers, in its new incarnation the company expects that number to grow significantly.

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For Facebook, the new Verizon purchase presents a major issue and a significant competitor that could put its mobile and video creation aspirations at risk. The new search formula and change of conditions to brands that historically relied on Mark Zuckerberg’s company to create traffic, will bring problems to attract new advertisers, a brand can appear on the Verizon and AOL platform without the cost of creating content. In fewer words, it will be easier for large advertisers to reach their target audience through ad campaigns on Verizon / AOL than to invest sums with diminishing returns on Facebook.

The purchase of AOL is a return to traditional models in which a medium functions as a hinge between a brand and a target audience. One of the important issues is the negotiation with the NFL that Verizon brings to the table, which Facebook is far from achieving, on the other hand, Verizon’s position in the market allows it to access media partners with greater speed.

Interestingly, Facebook operates on a lower layer than Verizon in terms of consumer access. Most of the traffic to Mark Zuckerberg’s network goes through Verizon first, which could establish a downside in the future. In addition, nothing indicates that this purchase would be Verizon’s last, as the cash flow from AOL advertisers begins to arrive we could see the integration of more smaller digital media, affecting Google and Facebook in their competition for advertisers.

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