Yahoo Oct. 5 agreed to buy contextual display ad provider Dapper for an undisclosed sum. The assets should help Yahoo advertisers build more personal, relevant ads.
Yahoo Oct. 5 moved to build on its market lead in display advertising assets
by agreeing to buy partner Dapper for an undisclosed sum.
"dynamic display ad creation and optimization," a fancy way of saying
it makes tools that help advertisers build and make money from contextual ads
placed on Websites.
Dapper's "smart ads" take the lead of the content people are
consuming on a publisher's Website to "automatically show the right
product, offer, or message."
For example, a real estate company used the technology to display ads on
real estate Websites about houses visitors to those sites indicated interest in
by their searches.
Dapper was founded by Eran Shir and Jon Aizen in 2006. While their goal was
to make a mark in display advertising by creating personalized ads, Shir acknowledged
that it is difficult to scale in a market where ad giants Yahoo, Google,
Microsoft and plenty of smaller companies are vying for business.
Yahoo will grant Shir and Aizen access to a broader range of advertisers.
"Yahoo is committed to the Smart Ads program and remaining open to
working with innovative third parties in addition to providing a proprietary
solution with the acquisition of Dapper," the company said
in a statement.
Yahoo aims to complete the deal in the fourth quarter of 2010.
Yahoo has been careful about its acquisitions in 2010, choosing content
providers and Web services to buy. The company purchased content plays Associated Content
and Citizen Sports and location-based service Koprol
The Dapper deal is curious until one considers the market context. One might
be inclined to think Yahoo, easily the market leader with more than 20 percent
of display ads, would choose to acquire businesses where it isn't so strong.
However, Google has been gaining momentum in display ads thanks to its
DoubleClick and YouTube businesses. In buying Dapper, Yahoo is defending its
turf, adding a personal touch to its display ad properties.
Personalization is something Google, Facebook and Microsoft have been
thinking a lot about as they seek to expand their digital domains.