"This year is about product, it's about execution," said AOL CEO
Tim Armstrong when asked afterward about the event. "If you take
our average client or agency a year ago, they were maybe testing
but ... probably just considering what it was. This year, almost
all of our clients and agencies are actually involved and they're
actually doing programmatic."
The makeup of AOL's business is still a work in progress. The
company
still leans on revenue from its "membership" segment, which
includes fees it collects from dial-up internet. But under Mr.
Armstrong, AOL is placing its bets on three pillars -- video,
ad-tech and premium content -- with ad-tech a key area of focus.
AOL now collects more than 34% of its ad revenue from the
programmatic side of its business, up from just 4% a year ago.
Total AOL ad revenue is
up 20% in the same time period -- second quarter 2013 compared
to second quarter 2014.
The event's product heavy focus also echoed the changing nature
of today's media buyer. Though the term "upfront" still connotes
lavish parties and deals completed via handshake, AOL is working to
shift the meaning of the term to include a new demographic: those
making deals behind a computer screen.
The shift was underscored by the presence of NBCUniversal
president of advertising Linda Yaccarino. "Why am I at a digital
programmatic event of all things? Did I get lost?" she joked. No,
she said, telling the crowd she felt comfortable and at home in the
room. "Programmatic is here to stay," she added.
Executives from Havas, Zappos and Verizon took the stage as
well, all endorsing AOL's approach to ad-tech.
"What you saw in there was exactly what the upfronts should have
been," said Matt Seiler, Global CEO of IPG Mediabrands, who also
spoke during the event. "We've got this really valuable thing for
marketers. Let's tell you the stories, or even have some of the
marketers tell you the stories, of how they're finding a way to
make it work."
