AOL is continuing its push toward “programmatic” ad-buying platforms, announcing the acquisition of Convertro, which aims to help marketers and agencies maximize spending across online and offline media channels.
The deal follows AOL’s recent announcement of plans to launch One by AOL, a programmatic ad platform designed to provide brand insight and actions across all screens including linear and connected TV. Last year, AOL acquired Adap.tv, an online-video advertising platform, for $405 million in cash and stock.
According to AOL, Convertro will let advertisers manage how they market across the entire “purchase funnel” and across all channels. The company plans to incorporate Convertro’s attribution-modeling capabilities into the One by AOL system when that platform launches.
“AOL is making advertising easier for marketers and agencies, as well as publishers,” AOL chairman and CEO Tim Armstrong said in a statement. “Our agreement to acquire Convertro demonstrates our continued commitment to bring efficiency to the advertising industry through automation and machine learning.”
AOL’s acquisition price for Convertro is comprised of approximately $89 million in cash upfront, plus approximately $2 million in converted stock awards and a $10 million earn-out, payable over a period of up to 17 months subject to Convertro reaching certain product-development milestones.
Convertro is based in Santa Monica, Calif., with offices in New York and Israel. Investors in the company include DAG Ventures, Bessemer Venture Partners, MHS Capital, Bessemer Venture Partners and Founder Collective.