Convertro maximizes returns on ad expenditure. It has a development center in Israel.
AOL Inc. (NYSE:AOL) acquired Convertro Inc., a leading provider of multi-touch attribution modeling technology for brands and agencies for about $101 million.
According to WSJ, AOL is paying $89 million in cash at closing, plus $2 million in converted stock awards and up to $10 million if certain goals are met over 17 months.
Convertro helps marketers and agencies maximize their return on advertising spend across online and offline media channels through granular insights into each channel, format, ad creative and audience segment. This transaction follows the recent announcement of ONE by AOL, a programmatic enterprise platform that will drive powerful brand insight and actions across all screens including linear and connected TV, all formats, and all inventory. Convertro will provide AOL’s customers with the ability to manage the consumer journey across the entire purchase funnel and across all channels, driving economic efficiencies and media effectiveness.
Convertro was founded in 2009 by CEO Jeff Zwelling, David Feldman, Gary Gurevich and David Perez. The company is based in Santa Monica (California), and maintains offices in New York and Israel.
It has raised $5 million from venture capital investors, including MHS Capital, Bessemer Venture Partnersbv and DAG Ventures. Among its customers several large companies, including Live Nation, Comcast and Intuit.
“AOL is making advertising easier for marketers and agencies, as well as publishers, ” said Tim Armstrong, Chairman and CEO, AOL. “Our agreement to acquire Convertro demonstrates our continued commitment to bring efficiency to the advertising industry through automation and machine learning. Our focus on the AOL Platforms business has positioned AOL for growth as the trend around programmatic advertising continues to transform the industry.”
“Convertro’s vision has always been to provide its clients visibility and recommendations on how their advertising investment works and how to improve that return on investment, ” said Jeff Zwelling, CEO, Convertro. “We believe the future of attribution is applying this data to programmatic buying and automated analysis. Integrating with AOL is going to bring our leading technology into the hands of some of the world’s leading and biggest advertisers and we couldn’t be more excited!”
Convertro generate spend optimizations for all marketing channels that a client may leverage, whether online (PPC, SEO, display, affiliate and social, for example) or offline (such as TV, radio and direct mail).