4 News Companies Ally to Sell Ads on the Internet
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The companies are hoping that the combined heft of their Web sites will encourage large advertisers to spend more money.
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(InfoWorld) - AOL plans to strengthen its online advertising business by acquiring Tacoda, a company that specializes in delivering ads based on users' online activities. AOL entered into a definitive agreement to acquire Tacoda, whose "behavioral targeting" technology will complement AOL's online advertising services, the companies announced Tuesday. AOL and Tacoda didn't disclose details of the transaction, which will close after customary approvals are obtained. AOL, which is owned by Time Warner, is in a so far successful, years-longÂ transition from a subscription-fee based business to an advertising-based business. Like Google, Yahoo, and other major Internet players, AOL is busy boosting its capabilities to provide a variety of online advertising services, including search, video, syndicated, mobile, and graphical ads. In order to capitalize on theÂ fast-growing online ad market, AOL, Yahoo, Google and others have resorted to purchasing online ad services companies. For example,Â Google is in the process of buying DoubleClickÂ for $3.1 billion, whileÂ Yahoo recently closed its acquisition of Right Media. In May, Microsoft announced its intention toÂ buy digital marketing services provider aQuantiveÂ for $6 billion. Meanwhile,Â AOL acquired Third Screen MediaÂ and AdTechÂ this year, and Lightningcast last year. The U.S. online advertising market grew 35 percent in 2006 over 2005, the fourth straight year of expansion for this market, according to the Interactive Advertising Bureau. Marketers spent almost $17 billion advertising on U.S. Web sites in 2006, according to the IAB. Tacoda, founded in 2001, is based in New York and will operate as a wholly owned subsidiary of AOL. It has about 100 employees and more than 4,000 Web sites in its ad network. Its publishing clients include The New York Times Co. and NBC Universal.
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AOL yesterday said it is buying its fourth online advertising company of the year, part of an ongoing effort to transform itself into an Internet advertising concern.
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By Peter Johnson  When they profile websites or Internet moguls, news outlets usually focus on the business end -- "How do they make money, and what's going to happen with the advertising?" -- says Yahoo reporter Kevin Sites.
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Ad networks target online gamers as next big audience for product placements.
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(InfoWorld) - Google has become the exclusive provider of pay-per-click text ads on CNN.com, one of the most visited news Web sites in the world, displacing rival Yahoo. Yahoo had been the provider of search-engine services and pay-per-click advertising for CNN.com since 2004. At the time, Yahoo took that contract away from Google. The deal announced Tuesday calls for CNN.com to use Google's AdSense advertising program exclusively for the contextually relevant, pay-per-click ads it runs on its pages, the companies said. CNN.com also uses Google's search engine. "This is an important deal for Google because CNN.com has a lot of traffic and high-quality content. The agreement provides an opportunity for our advertisers to target CNN.com and get high-quality traffic for their ads," said Google spokesman Brandon McCormick. However, CNN apparently still uses Yahoo's search engine and pay-per-click ads on the International edition of CNN.com. Yahoo didn't immediately reply to a request seeking comment. A CNN spokeswoman confirmed that Google replaced Yahoo as the text ad provider on CNN.com, but at press time, she hadn't replied to a subsequent inquiry about CNN International. The news of Google's win comes at a time when Yahoo's new Panama pay-per-click advertising platform has been in place in the U.S. now for a little over six months. Yahoo, whose financial performance in the past year has been disappointing and has led toÂ a major company reorganization, is counting on Panama to help boost its pay-per-click advertising business. Pay-per-click ads, which are matched to the topic of search-engine queries and of regular Web pages, make up the single largest segment of online ads, accounting for about 40 percent of all revenue. Google generates most of its revenue from sales of these text ads, which, when clicked upon, take people to advertisers' pages. Advertisers pay only when people click on these ads. In other online ad formats, advertisers pay when ads are displayed. According to Yahoo, Panama significantly improves on its ability to match ads to search queries and Web pages. The company has said that this improved targeting will increase the number of times users click on the pay-per-click ads it serves up in its search engine, Web pages and partner Web sites.
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Fox Interactive Media, Tribune and   LookSmart are among major media owners who will auction   non-premium advertising space to generate more revenue from   existing Web pages.
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New York Times Co and business news  channel CNBC will share video and stories from each other's Web  sites, an alliance that could bolster them against an expected  assault by News Corp.
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The online advertising market is hot, but pioneer DoubleClick Inc. isn&#39;t. The provider of Internet advertising services has decided to explore strategic alternatives, including a possible sale.
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New interactive ad format would give advertisers new ways to reach users online.
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An Internet entrepreneur and a Wall Street group have joined a list of potential rivals to News Corp.'s  $5 billion bid for Wall Street Journal publisher Dow Jones & Co. Inc. , an adviser to the Dow Jones employee union said on Thursday.
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There's no escaping advertising. Show even a modicum of success, and marketers start looking for a way in. Really Simple Syndication feeds are the latest target. By Daniel Terdiman.
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The business news broadcaster could share online content with the FT to counter a Dow Jones-powered Fox Business Channel.
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Microsoft is joining search firms Google, Yahoo! and British advertising agency WPP in the battle to sell internet advertising.
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Under the deal, company will be the exclusive third-party ad provider for Dow Jones-owned sites including WSJ.com and Marketwatch.com.
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Microsoft has the software. Yahoo! has the ad revenue. Together they can challenge Google. Among the likely winners: online advertisers.
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Four major U.S. newspaper chains launched an online advertising network on Friday that will let advertisers book national campaigns through a single point of contact, reaching 50 million people a month across the U.S.Investors include the Tribune, Gannett, Hearst, and New York Times companies, which publish flagship newspapers such as the Chicago Tribune, USA Today, the San Francisco Chronicle, and the New York Times, respectively.The network, QuadrantOne, will let an advertiser place ads on hundreds of Web sites focused on 27 major markets, targeting users by what they are viewing, their online behavior and demographic information.QuadrantOne is most notable for the online players that aren&#39;t participants, such as Google, Yahoo, or Microsoft. This latest move by the newspaper companies may be designed to assert greater control over their print and Web properties.Yahoo reached a landmark revenue-sharing deal&#160;in November 2006 with seven U.S. publishers. Yahoo provides search services, places job ads on its own HotJobs site and sells Web advertising.&#160;The deal was expanded in April 2007, with some 264 newspapers distributing their content on Yahoo&#39;s portal.One of the QuadrantOne&#39;s investors, the Hearst company, is participating in the Yahoo deal.Google&#39;s PrintAds program lets its customers who are already buying contextual Web-based ads to also place ads in 600 daily and weekly U.S. newspapers. Google also offers easy tools for customers to design their own ad that can be uploaded to particular newspaper.The Chicago Tribune, the New York Times and the San Francisco Chronicle participate in PrintAds.If newspapers develop better ways to sell their own online ads, they may not have to share revenue with their Web counterparts such as Yahoo and Google.Online advertising accounted for about $16.9 billion in revenue in 2006 and is expected to rise to $50.3 billion by 2011, according to a December 2007 report from the Yankee Group.The U.S. newspaper industry is in dire straits, in part because of a bumpy U.S. economy, declining print readers and falling print advertising revenue.Critics argue that newspaper companies waited far too long to revamp their businesses with the surge in online publishing and advertising over the last 15 years.Companies such as Google, which has made a fortune in Web-based advertising, have reaped some gains at the expense of newspapers, as advertisers look for cheaper and more targeted ways to reach buyers.Classified advertising, once a bread-and-butter source of revenue for newspaper, has also declined over the years due to advertising boards such as Craig&#39;s List.&#160;