A warning
The normally reserved Mr. Falco spewed a bit of fire and brimstone when he spoke of his competitors. "We have Platform A, the largest ad network in the world," he said, rattling off statistics such as the 3 billion ad impressions AOL's networks collectively serve a day. "Microsoft and Google can ignore us and leave us off of charts if they want, but they do that at their own peril."
He was referencing a chart used in a presentation yesterday by Microsoft's Brian McAndrews that illustrated how the digital ecosystem looks to Microsoft and where all of Microsoft's competitors fit into it. AOL didn't show up on the chart, although its Advertising.com division did. Mr. McAndrews also told the audience the two companies that could offer publishers the full ecosystem were Microsoft and Google, which didn't sit well with Mr. Falco.
"Technology is an enabler, but we're still in the media and marketing business," he said.
AOL is not all that interested in creating an ad exchange, Mr. Falco said, believing it's not necessary and can commoditize inventory, a concern of publishers. Mobile, however, is an area of continued investment, even though it has moved slower in the U.S. "We have to get into the game a little quicker," he said.
Mr. Falco, a self-described digital immigrant, addressed his former medium, TV: "You sit back and wonder 'Why can't these guys get out of their own way?' [Because] they have all these legacy models and partnerships and its difficult for them to get past them. But at some point they'll come to realize they have no growth. Generally speaking that'll bring about the change they so desperately need."
written by Abby Klaassen for Ad Age
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