AOL Seals Behavioural Targeting Deal

AOL has completed its acquisition of behavioural targeting firm TACODA in a deal which analysts have estimated as being worth $275 million.

AOL announced its intention to acquire the company in mid-July in order to add a behavioural targeting network to its Advertising.com third-party display advertising network. 'With TACODA, we can offer advertisers state-of-art targeting tools,' said AOL Chairman and CEO Randy Falco. 'Combined with our own network, our Advertising.com third party network, and our other recent acquisitions in the advertising space, AOL now has one of the most robust and sophisticated advertising platforms in the business.'

According to market research firm eMarketer, the behavioural targeting market is projected to increase to $3.8 billion by 2011, from $350 million in 2006. Through TACODA's cookie-driven practice, advertisers can deliver messages to consumers based on where they have gone online, regardless of the content of a specific web page.

'The acquisition of TACODA will build on our advertising momentum, letting us better serve advertisers by enhancing our ability to precisely target advertisements across an even broader network,' says Ron Grant, AOL President and COO.

Founded in 2001, TACODA employs advanced technology that enables advertisers to deliver highly targeted ads based on consumers' online behaviours. The firm will operate as a wholly owned subsidiary of AOL and continue to be based in New York.

In January comScore Networks agreed a multi-year licensing agreement with TACODA in a deal described as integrating 'two of the largest repositories of knowledge about online consumer behaviour' (www.mrweb.com/drno/news6326.htm ).

Web sites: www.aol.com and www.tacoda.com.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.