Contrary to its name, Convertro is not an evil robot that uses its crazy-good math skills to destroy the human race. No, the startup actually provides businesses with a marketing attribution service, which is a non-cookie based tracking method to gather consumer data. It then analyzes that data and helps identify which advertising or marketing efforts were the most successful in driving sales.
This is actually the second such marketing attribution company to see a big acquisition today, with the first being Google’s purchase of Adometry, as VentureBeat reported earlier.
AOL’s acquisition of Convertro is part of the company’s strategy to improve its advertising business by integrating useful tracking or big data technologies into its many products and services. The company previously purchased big data prediction service Gravity for $90 million earlier this year and acquired video ad startup Adap.tv for $405 million in 2013.
Under the terms of the acquisition deal, AOL will pay $89 million in cash for Convertro as well as an addition $2 million in converted stock awards. Also, AOL is offering another $10 million 17 months after the sale if certain benchmark goals are reached — pushing the deal’s total value to $101 million.
“AOL is making advertising easier for marketers and agencies, as well as publishers,” said AOL chief exec Tim Armstrong in a statement. “Our agreement to acquire Convertro demonstrates our continued commitment to bring efficiency to the advertising industry through automation and machine learning.”
Armstrong will likely expand on how Convertro fits into AOL’s overall strategy during the company’s Q1 2014 earnings call tomorrow morning.
Founded in 2009, Santa Monica, Calif.-based Convertro previously raised $5 million in funding.
AOL Inc. (NYSE: AOL) is a brand company, committed to continuously innovating, growing, and investing in brands and experiences that inform, entertain, and connect the world. The home of a w... All AOL news »
Convertro’s prototype was built as an in-house marketing tool for the e-commerce company YLighting. The founders were frustrated with the inability to correctly credit the sales among vari... All Convertro news »
Tim Armstrong was appointed CEO and Chairman of AOL in March 2009. Before becoming the CEO of AOL, Armstrong presided over Google’s North American and Latin American advertising sales and ... All Tim Armstrong news »