AOL on Tuesday Announced that it has entered into a definitive agreement to acquire TACODA, an online behavioral targeting advertising network. TACODA will operate as a wholly owned subsidiary of AOL.
TACODA, founded in 2001, employs advanced technology that enables advertisers to serve highly relevant ads based on consumers’ online behaviors. Using TACODA’s technology, AOL will be able to extend its targeting capabilities to advertisers and publishers and extend the reach of its third-party display network, currently the largest in the U.S.
“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,” said Ron Grant, AOL President and COO. “We are committed to bringing advertisers and publishers a full range of tools and services, along with the widest reach, and with TACODA we’re taking another step toward that goal.”
According to eMarketer (June 2007), the behavioral targeting market is set to increase to $3.8 billion by 2011, from $350 million in 2006.
“AOL is a perfect match for TACODA. By combining our targeting capabilities with AOL’s existing set of solutions, we can better serve online advertisers and publishers as the market for behavioral targeting continues to emerge,” said Curt Viebranz, CEO of TACODA. “I’m also delighted to have the opportunity to work with Ron and with AOL CEO Randy Falco, who are putting in place all the pieces needed to create a world-class advertising network.”
TACODA, based in New York, employs approximately 100 people. The closing of the transaction is subject to customary closing conditions and regulatory approvals. Financial terms of the deal were not disclosed.
Other recent corporate acquisitions by AOL in 2007 include Third Screen Media, the leading mobile advertising network and software provider, and AdTech AG, the leading international online ad-serving company based in Frankfurt, Germany. AOL acquired Lightningcast, a leader in delivering advertising solutions for on-demand, live and downloaded video content across the Web, in 2006. AOL acquired Advertising.com, which operates the largest third-party display network, in 2004.