Verizon interested in acquiring Yahoo to bolster its mobile advertising business
Given the growth of the US wireless market towards saturation, Verizon may need to branch out in order to avoid stalling its business. Mobile advertising is an area that continues to innovate and grow fast. Verizon estimates that mobile will account for 80% of consumer media consumption over the next few years. There’s been a significant shift from spending on TV and magazines to mobile devices and with mobile ad spend predicted to reach $42bn this year, it would be a good fit for a carrier such as Verizon that also comes with a large wireless subscriber base.
Yahoo’s mobile ad business could be an interesting fit for Verizon
Verizon has been busy expanding into the mobile marketing space and acquired AOL in May 2015. This gave Verizon access to mobile video capabilities, aiming to build a digital ad business that could compete with Google and Facebook. A proposed acquisition of Yahoo could add search and native ad features to the carrier’s roster. Gemini is Yahoo’s search and native mobile ads unit, whilst Yahoo Brightroll powers programmatic digital advertising solutions.
Adding such a wide variety of mobile advertising tools and technologies could equip Verizon effectively to compete with Google. In addition, Trevis argues, Yahoo’s monthly active base of over one billion users makes for a good audience in addition to its content verticals such as news, finance, sports and lifestyle.