As consumers increasingly consume video on mobile, the ad dollars will follow.
And, according to the IAB, 68% of marketers and agencies plan to increase their video ad spend in the next year.
Verizon, Day pointed out, bought AOL because it needs to figure out how mobile advertising works.
“I think Verizon doesn’t know anything about that,” he said. “AOL brings a lot of competency in terms of how to make that advertising environment work within mobile video.”
Verizon isn’t the only company recognizing video’s increasing importance. After all, Yahoo bought BrightRoll, Facebook bought LiveRail and Australian telco Telstra bought Ooyala.
“Verizon has opened up a huge potential revenue stream with this acquisition,” said Patrick Hopf, president of SourceKnowledge, a programmatic video platform. “Mobile is a great medium for video, since ads are often full-screen, and it's great for programmatic, as there's an abundance of data available from these devices, ranging from device ID to location and integration of payments."