Search combining with online advertising.(content news)

Firms offering large-scale search capabilities were on the prowl for online advertisers earlier in the year as Google acquired Double Click, Yahoo! purchased Right Media, Microsoft bought AdECN, and AOL acquired Tacoda. At press time, all of these deals were expected to close by the end of the summer.

"I think the trend indicates that companies with portals are looking for key search components," says John Blossom, president of content-industry consultancy Shore Communications. "They're trying to get their ads in front of the content that audiences care about most. It's a matter of trying to come up with revenues beyond what they can earn from their own content."

That's not to say each acquisition was one search company following the lead of another, according to Blossom. "Each company may have its own goals. Yahoo! is still focused on providing value for brand advertising, which is much of Google's strength."

Yahoo! already owned 20% of Right Media, a stake it purchased in October 2006. By acquiring the remaining 80%, Yahoo! gained full ownership of the underlying technology that allowed it to launch its Smart Ad program in early July, which enables marketers to present targeted online display ads in real time. Smart Ads combine Yahoo!'s consumer insights and rich media capabilities with the serving technology to convert marketers' creative campaign elements and offerings into targeted and relevant display ads.

Microsoft's purchase of AdECN was the company's third purchase of a digital advertising firm in two months. Microsoft acquired mobile advertising provider Screentronic, then purchased aQuantive for $6 billion. AdECN is the company's final element in its digital advertising portfolio, Microsoft reported at the time of the acquisition. Upon completion of the aQuantive deal, Microsoft boasted of its plans to become one of the top two firms in terms of online advertising, meaning it would have to leapfrog Google or Yahoo!.

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