Oath aiming to reach 2 billion people
Verizon’s (VZ) Oath subsidiary is on a mission to double its audience and generate as much as $20 billion in annual revenues by 2020. Oath currently has a monthly audience of 1 billion people across its various digital properties, including Yahoo Sports and TechCrunch. It’s aiming to reach 2 billion people by 2020.
Facebook (FB) reaches more than 2.2 billion people globally each month, while Twitter (TWTR) has a monthly audience of 335 million. Snap (SNAP), another Oath competitor in the digital advertising business, reaches an audience of 188 million people daily through its Snapchat app.
Oath aiming for $20 billion in annual revenue
Oath generated $3.8 billion in revenue for Verizon in the first half of 2018, implying an annual revenue rate of $7.6 billion. It’s aiming to generate $10 billion–$20 billion in annual revenues by 2020. Spending on digital ads worldwide is expected to exceed $357.3 billion in 2020, accounting for 49.9% of total media ad spending, according to eMarketer estimates.
Oath parent Verizon generated revenues of $126 billion in 2017.
Verizon says Oath is not for sale
Although some have suggested that Verizon should sell Oath, Verizon says Oath is living up to its expectations, and it doesn’t see a reason to sell it.