AOL acquires Santa Monica-based marketing optimization platform Convertro

by Adam Calica
May 7, 2014

[ibimage==31520==Original==none==self==null]

AOL announced yesterday their acquisition of Convertro, a marketing optimization platform based out of Santa Monica. The deal will cost AOL $101 million in total, with about $89 million up front, $2 million in stock and a $10 million payout over 17 months. This comes just after Google's move earlier yesterday to purchase competing marketing attribution vendor Adometry for an undisclosed sum.

Founded in 2009, Convertro has built an innovative marketing attribution technology that did not rely on last click or heuristics, but on scientific methods informed by user behavioral data. They specialize in marketing analysis that works out the adverts that result in the highest rates of consumer purchases, across both banner and sidebar ads. Convertro's clients include Digitas and Comcast.

AOL became aware of Convertro due to its technology and infrastructure after "multiple suitors approached the company," according to CEO and co-founder Jeff Zwelling. "As you know, this is not the first company I've sold to a large company and you don't want it to just be a side business that may or may not survive. AOL was big enough in that it'd have huge impact on us, and it was small enough in that we'd have impact on them."

The deal is fascinating in that it points to how AOL has been moving its business not just to one based on ad revenues, but on increasing its profits margins. CEO Tim Armstrong said “Our agreement to acquire Convertro demonstrates our continued commitment to bring efficiency to the advertising industry through automation and machine learning.”

AOL has acquired a string of advertising comapnies lately. Earlier this year AOL purchased video advertising marketplace Adap.tv for $405 million, content-personalization company Gravity was acquired for $90 million.

 

Find startup and tech marketing jobs in Los Angeles on the Built In LA job board.

Jobs at Convertro

Los Angeles startup guides

LOCAL GUIDE
Best Companies to Work for in Los Angeles
LOCAL GUIDE
Coolest Tech Offices in Los Angeles
LOCAL GUIDE
Best Perks at Los Angeles Tech Companies
LOCAL GUIDE
Women in Los Angeles Tech