AOL's Armstrong: Adap.TV Gives Ad `Singularity'

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Aug. 7 (Bloomberg) -- Founder and CEO of Adap.TV Amir Ashkenazi discusses the company's acquisition by AOL with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

It is a very competitive market for these ad dollars.

This is an interesting twist.

A lot of times people asked this question, what exactly is a oh well these days?

For the ceo, the message is a different one than we have heard with some of the other acquisitions.

Here is how you have to think of this business.

They still have a lot of money they generate through the dial- up business.

There are people who still have aol subscriptions.

That has been a dying business.

Tim armstrong has been taking money from that.

In the past, we have heard a lot about deals like the huffington post because the idea was let's focus on content that is compelling to advertisers, we can charge premium ads tied to that content.

This deal today seems a lot more similar to a deal we saw in 2004 , the purchase of advertising.com.

The idea of having networks or platforms at the end of the day, infrastructure that can help allow other publishers to sell their ad space.

Obviously, adap.

Tv is a different one and is tied to internet video.

It is a very different business concept than simply selling ad dollars tied to the media properties.

You have to distinguish between those two businesses.

What does it mean for the future of aol?

Tim armstrong spoke a lot today about how quickly this business is growing and where this potentially could go.

There is a big opportunity.

It does make you wonder if there are still -- there is still an excitement for that potential growth for the traditional a well business.

Does that mean that aol has to make a more concrete decision on which business it wants to be more closely tied to?

In the past, there was a focus on the aol media brands.

Do they need to spin it off?

You they need to choose which area will be more important?

Jon erlichman, thank you.

I want to bring in someone directly involved in this deal.

Ceo and founder of adap.tv.

Great to have you.

The biggest acquisition under tim armstrong to date him what is it about -- date, what is it about adap.tv that is so special?

The move from broadcast tv to online delivered video.

We consume more and more video content over the internet.

The second trend is equally powerful, but much less video -- visible.

Moving from manual trading to trading based on tools, just like e-commerce to do for everything else.

We are the leading programmatic platform for tv and video advertising.

You provide the technology for the premium publishers that allows them to connect and run their business.

When you think this in the context of the 240 billion dollar tv industry and is massive revolution, very similar to what we have seen in digital photography and music, it is easier to understand the impacts this deal can make.

This is something that we at "bloomberg west" feel every day as a technology television show that is streamed live online.

Aol is competing with ad dollars with google, facebook, twitter, yahoo.

How does aol compete with these kinds of giants?

We provide technology for buyers and sellers.

Our platform is inventory agnostic.

It provides buyers and sellers with the tools and information they need in order to make smart decisions.

Many of things are trivial when you take it to other products.

It is the ability to know exactly what you are buying and to what you are buying.

Everything that -- we are doing for video and tv advertising.

Why aol?

I am sure it was a huge decision for you to decide whether or not to sell to aol.

It is a great question.

You want to advance your germane.

When you find a team that is aligned with the vision and people so great to work with and when you find real commitment to winning and the ability to put massive resources beyond it, you realize this can advance the limitation of our dream.

We are happy to do it and we will continue to operate independently within the aol network.

We expect to accelerate everything that we do in terms of product development and international expansion and sales.

The video ad lance cape is rapidly evolving.

Facebook is planning to launch video ads.

-- the video landscape is rapidly evolving.

Facebook is planning to launch video ads.

Tv and video advertising is the ideal format for the brand advertising.

The changes perception towards brand and product.

It is as powerful as searches for the right response.

This is why you see the shift from tv to over the internet, digital video.

When you take all of the great assets and the impacts of video advertising and you add the capabilities that one to one delivery provides, and get this very powerful medium.

I suspect this will only grow.

Advertising is still a small part of digital advertising overall.

Tim armstrong said this morning that part of the goal, part of what you will help with, is helping transfer tens of billions of dollars from tv advertising to video advertising.

How realistic is it has to mark how realistic is it to lock in deals, multimillions of dollars ahead of time?

As realistic it -- as it was too moving billions of dollars in film photography to digital photography.

It is absolutely going to happen for the there is no doubt that in the future the video content will come over the internet.

The advertising will be delivered that way as well.

All right, thank you so much for joining us.

This text has been automatically generated. It may not be 100% accurate.

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