Online advertising + Web 2.0 = Acquisition
AOL, Time-Warner's restructured Internet arm, just made another purchase that allows it to compete better with hotter rivals Google and Yahoo. It bought up another online advertising firm, this one named Quigo. That firm has technology that allows for context-based ads, where users see ads that are relevant to what they are doing on the Web.
The deal, for $363 million, is another step in AOL's attempt to make itself into primarily and online advertising service. It's the fourth purchase by the division this year, including advertising firms Advertising.com and Tacoda.
Quigo's advantages give Ail a significant platform in the battle against its key rivals, according to a New York Times article ("Another Step for a Remade AOL" 11/8/07). That article notes:
Quigo offers its customers more information than Google and Yahoo do about where ads appear - on what sites and in what locations. Quigo allows advertisers to purchase specific placements for their text ads, which in turn encourages them to pay higher rates.
The company already has such online clients as ESPN.com, Slate.com, and Time magazine's website.
The online advertising market continues to tighten, as the big boys snatch up every viable small innovator.
