AOL acquires cell phone ad firm

AOL on Tuesday said it has acquired mobile-advertising company Third Screen Media for an undisclosed sum. The firm, considered a pioneer in the nascent mobile-ad space, will remain headquartered in Boston and become part of the Advertising.com Internet ad subsidiary that the Time Warner unit acquired for $435 million in 2004.

Third Screen Media, which claims to run the nation's largest mobile-advertising network, is part of what is viewed as a growing trend toward offering ads on cell phones and other mobile devices--though many carriers have been moving cautiously on that front so far out of fear of annoying their customers. According to research firm eMarketer, the U.S. mobile-advertising industry is expected to balloon from $421 million in 2006 to $4.7 billion--and to $11.3 billion worldwide--by 2011. Earlier this month, Microsoft said it had agreed to buy European cell phone ad company ScreenTonic.

[LampWampWiz]

The TimeWarner Influence

I remember years ago sitting with hundreds of other s listening to a discussion of whether AOL should or should not move into ads on cell phones or using the GPS technology that would "soon be available" to trigger cell phone ads as a cell phone moved down a street.

Almost all present were AGAINST that use of technology and using RFID tags to present ads to customers while they walked through stores, which was also discussed (imagine walking through a department store and as you walk down an aisle being greeted with a flat screen presenting the ad: "Bras in your size on sale today! Bali 34A available in four styles, all on sale!!!").

The discussion ended with "just because you CAN do something doesn't mean you SHOULD." Then AOL and TimeWarner merged, everything changed, and now with TimeWarner running things it looks like we will have AOL in the business of putting ads on cell phones. Yup, you sure can see TimeWarner's influence/control over AOL.