September 3rd, 2015
Today, AOL, a division of Verizon Wireless, announced the acquisition of Millennial Media, Inc. (NYSE: MM), a leading mobile ad tech company. With the acquisition of Millennial Media, AOL will add significant mobile capabilities to its ONE platform, creating the largest open, mobile-first programmatic platform in the market.
LUMA Partners represented Millennial Media in the transaction.
As we discussed in our State of the State at DMS 15, ad spending is continuing to shift towards programmatic and there is still a big opportunity in mobile advertising, as ad spend is far behind time spent. According to eMarketer, mobile ad spending is expected to reach $40 billion by 2016, with approximately 69% bought programmatically. Millennial Media has stayed ahead of both of these trends by acquiring programmatic capabilities and building a large mobile presence. Millennial Media completed its full-stack programmatic platform in 2014 with the acquisition of Nexage and has achieved significant scale, reaching more than 65,000 apps and one billion unique global users.
Throughout the last year and half we have seen a number of Ad Tech and MarTech acquisitions from new entrants, including Telco, Consumer Internet, CRM/Software, and Data companies. This deal is another example of ongoing interest in digital marketing, and we expect this trend to continue as deep pocketed buyers seek “right-time decisioning of consumer data”.
Congratulations to Millennial Media and AOL!