AOL said Tuesday that it has acquired video-content provider 5min Media under undisclosed terms. According to 5min Media, the provider’s delivery platform lets online advertisers reach a targeted audience of tens of millions in specific categories by making a single buy across consistent video content.
AOL expects the deal to significantly expand the global content network’s appeal to advertisers while further enhancing the distribution and monetization of AOL-produced original video content throughout the web, noted AOL CEO Tim Armstrong.
“5min Media is the perfect complement to our powerful video capabilities,” Armstrong said. “It provides a missing piece in the AOL value chain that completes our end-to-end video offering from content creation through syndication and distribution to the consumer experience.”
Building for the Next Decade
The 5min Media acquisition complements the StudioNow platform AOL acquired in January, giving the company the ability to create and distribute video online in a cost-effective and scalable way — both for AOL as well as third-party publishers.
“Our acquisition of 5min Media is the latest in a number of steps we have taken this year to better position AOL to capture the growing video opportunity on the web,” Armstrong said. “We are building a video ecosystem for the next decade.”
Though AOL already had a commercial agreement with 5min Media for the network’s sites to integrate 5min content, Armstrong noted that the acquisition will let the company add even more videos to its web pages. “Importantly, we’ll also be able to identify video content holes among our sites, tap our StudioNow capabilities to fill those needs, and create a truly ‘demand informed’ video library,” Armstrong said.
According to 5min Media, its video-syndication platform was generating more than 160 million unique video views per month before AOL’s acquisition. However, this pales in comparison to the nearly 3.6 billion video ads that Americans…