Analysis for 'Syndicated Video Economy'

  • Syndication Wins: AOL's Video Revenue Jumps From $10M to $100M in Past 2 Years

    I've been devoting a lot of ink to AOL recently because its success has made it the poster child for the power of online video syndication and monetization. In yesterday's Q3 '12 earnings report, AOL delivered the most resounding evidence yet of syndication's value - CEO Tim Armstrong said AOL's video ad revenue jumped from $10 million 2 years ago to a projected $100 million in 2012, with more growth ahead in 2013. The results are mainly due to video syndication, powered by AOL's acquisition of 5Min in 2010.

    Simply put, AOL is capitalizing on the concept of the "syndicated video economy" that I first began discussing 4 1/2 years ago. On the call, Armstrong described how AOL's large video syndication library (which has grown from 30K videos to 450K today) feeds both its owned and operated properties and its network of 30K publishers. All of these sites are hungry for video for 2 important reasons: they meet users' increasingly video-oriented expectations and their adjacent ad inventory is monetized at far better rates than traditional display.

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