Mon Dec, 2010 by Derek Mehraban
In October the rumor was of an AOL acquisition of Yahoo. Now the talk is almost the reverse. Almost. The latest rumors have AOL being split up into two companies, its dial-up service (which still serves millions) and its content/advertising branch. Yahoo would then merge (acquire or be acquired by) with the content/advertising arm.
Photo Credit: Huffington Post
This acquisition would be good news for digital marketers. Redundancies in the companies would allow for streamlining. The company would then be better able to target advertisements and increase revenue for those looking for an AdSense supplement or replacement. Both Yahoo and AOL have large user databases and some of that data may differ significantly.
The merger would allow a powerful combination of user preferences. In the end, consolidation in the ad serving industry is good, to a point. The competition allows prices to remain better for advertisers. The larger companies have a better database, allowing for more conversions as the ads are sent to less pedestrian viewers. Having some choice among the ad servers is also necessary as the data sets and the algorithms of those data sets are different. Whether or not the merger actually happens this time, is another question altogether.
Read the article on Mashable for more information.