Yahoo has acquired ad targeting and delivery firm Blue Lithium for US$ 300 million, reports Advertising Age (via MarketingVOX).
The purchase is the latest in moves by major players to corner the behavioral advertising market.
Blue Lithium adds a significant number of capabilities and inventory to Yahoo’s existing ad offering.
The newly-acquired company boasts relationships with major publishers, which will continue after the purchase. Its inventory will be incorporated into Right Media Exchange, which Yahoo just acquired in full a few months ago.
Blue Lithium will run ads on Yahoo’s network of fully-owned sites and services, bringing significant targeting power to ad delivery, something Yahoo aggressively began to target with the introduction of its SmartAds offering to the market.
Yahoo hopes adding a performance-based system will bolster the income from marketers looking for more than just brand impressions, characterized as a strength for the company.
The move is a continuation of a trend of the acquisition of high profile internet advertising services firms that began earlier this year when Publicis acquired Digitas and continued with the proposed acquisitions of DoubleClick by Google and aQuantive by Microsoft, writes MediaPost. It also signals an increase in the perceived value of behavioral targeting services. eMarketer predicts that the behavioral targeting market will increase from $350 million in 2006 to $3.8 billion in 2011.
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