AOL buys ad firm Tacoda
Published: 25 Jul 2007 08:28 BST
Time Warner's AOL internet unit has agreed to acquire Tacoda, a company that offers behavioural targeted ads.
Behavioural ads, which are relevant based on a person's online behaviour, are the next phase of online advertising. A few weeks ago Yahoo launched SmartAds, which combines behavioural information with demographic information in ad serving.
Behavioural targeted ad spending is projected to nearly double next year to $1bn (£485m) and then nearly triple to $3.8bn by 2011, according to research firm eMarketer.
Consolidation is ripe in the market. Google wants to buy online ad company DoubleClick for $3.1bn; Yahoo recently spent $680m for 80 percent of Right Media it didn't own; Microsoft is offering $6bn to buy Aquantive; and WPP Group is acquiring 24/7 for nearly $650m.
This is the latest ad-related purchase for AOL. The company acquired mobile-advertising company Third Screen Media and AdTech AG, a Germany-based online ad-serving company this year. AOL purchased video ad firm Lightningcast last year and Advertising.com, the largest third-party display ad network, three years ago.
Tacoda, based in New York, will operate as a wholly owned subsidiary of AOL. Terms of the deal were not disclosed.
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