Recently, Verizon acquired Yahoo, but is it enough to join the big leagues of Facebook and Google? Magnetic CEO, James Green shared his thoughts in his August Marketing Land column.
There’s been a lot of activity in the AdTech and MarTech industries where companies come together to combine technologies in hopes of offering greater scale and reach to marketers. These acquisitions and mergers generally follow a common theme – bigger and better data sets, more channels and deeper views of customers.
Verizon’s acquisition of Yahoo is definitely a move that suggests its looking to scale, but it will be challenging to compete with the behemoths. Look at Facebook, for example. Facebook owns Instagram and WhatsApp so they have a simple way to log in and reach people or “lookalikes” across all of their platforms. AOL/Yahoo’s version of this is much messier when you compare Facebook with Yahoo, Instagram with Tumblr, and WhatsApp with AIM.
However, AOL has a strong fundamental infrastructure, so there is a big opportunity to make audience targeting and campaign optimization seamless across AOL’s inventory. But we still have to ask the big question, if Google owns search, and Facebook owns social, then what space can Verizon + AOL + Yahoo own? Identity? Even with their claims around consumer data, I wouldn’t place any bets. Plus, Facebook pretty much has that covered.
In 2015, five companies dominated the total display revenue market: Google (16%), Facebook (30%), Verizon (4%), Yahoo (5%). With the Verizon and Yahoo merger, it brings the company close to a 10% stake in total display revenue, proving that they are closer to competing in the big leagues with Facebook and Google (statistics taken from eMarketer research in 2015). But, there’s a long road for them ahead and it remains to be seen if Verizon will have the skills, vision and resources to bring the companies and tech together in a way that will make them win.
To read more about how Verizon’s Yahoo buy will reshape the digital ad marketplace, read James’ full column featured this month in Marketing Land.
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