UPDATED 15:18 EDT / OCTOBER 05 2010

Yahoo Acquires Dapper for Creative Ad Creation

Yahoo! is acquiring Dapper, a company providing dynamic display ad creation and optimization.  Financial details of the deal were not disclosed.

Already a powerhouse in display ads, one would wonder at Yahoo’s decision to take on another purchase towards its existing strong suit.  Turns out, Dapper’s technology will enable a faster ad creation process, automating a good amount of creatives for a self-regulated system.

It’s Dapper’s Smart Ads Yahoo appears to be after.  “Smart Ads continue to be a critical component for display advertisers,” says Yahoo.  “Dapper’s capabilities, combined with Yahoo!’s already deep consumer insights, will help Yahoo! more efficiently deliver dynamic and personalized ads for customers across more of our network and will accelerate the adoption of Yahoo! Smart Ads.”

An existing partner of Yahoo’s, Dapper has already been providing value to Yahoo’s display ad network.  As Yahoo seeks to maintain a strong position in this arena, the portal-heavy network is making strategic acquisitions towards maintaining a large, existing clientele.  Even as Yahoo loses executives to more exciting startups, the company is in a position to leverage its search revenue a great deal.

In part due to the recent partnership with Microsoft for search, Yahoo’s search revenue is on an increase as well.  Yahoo’s made a number of changes to its portal offerings, teaming with content providers like Zillow and other publishers to keep end users in the Yahoo loop.  Facebook is using a similar tactic from a social networking standpoint, which is still aiding to Yahoo’s drop in market share over the years.

It’s a good move for Yahoo, as enhancing tools around ad creation will encourage marketers onto its platform.  Mobile advrtising, which is experimenting a great deal with display ads right now, is experiencing some growing pains around ideal ways to run an ad network.  Apple is losing brand support, retaining too much control over the creative process.


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