Yahoo said late Tuesday it will acquire online-advertising network BlueLithium, the fifth-largest such network, for $300 million in cash, in an effort to gain greater presence in the market for behaviorally targeted advertising. BlueLithium's technology delivers internet surfers relevant ads by tracking the way they move from site to site. Yahoo already uses behavioral targeting on some parts of its site, including its database of 250 million Yahoo Mail users. Yahoo said "the combination of BlueLithium's assets and relationships with Yahoo's overall ad network will give advertisers access to powerful data analytics, advanced targeting and innovative direct-response buying strategies." In July, Yahoo acquired the remaining stake in online-ad exchange Right Media Inc. for $680 million; it said BlueLithium's behaviorally targeted ads will become an active participant in the ad exchange. The deal is expected to close in Q4 2007.
Sources: Press release, MarketWatch, New York Times
Commentary: Google: Focused on Better Targeted Advertising • Two Logical Paths To Targeted Marketing: Google And Yahoo
Stocks/ETFs to watch: YHOO. Competitors: GOOG, MSFT
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