Tuesday, July 24, 2007

Consolidation in Behavioral Targeting Space: AOL buys Tacoda

In my 2007 Predictions I predicted
“Only few main behavioral network players will be left and some of the existing ones with poor networks will either go out of business or be sold.”

Well, since then we have seen consolidation in this market earlier this year, Google-Doubleclick, MSN-Aquantive, Yahoo-Rightmedia now the latest is AOL-Tacoda.
According to NYPost’s article Aol has an Eye on Your Business, AOL is moving into the behavorial-targeting ad market with a deal to purchase Behavioral Targeting Firm Tacoda.

“Tacoda, which will operate as a wholly owned AOL subsidiary, is one of several online ad firms that use "behavioral targeting" techniques to track Web surfers' habits. Through its so-called "Audience Network," Tacoda helps marketers tailor ads to individual users for such things as cars or computer equipment. “
“…While not referring to any company in particular, [Andy] Falco did concede to The Post that Tacoda "did have other choices, but they choose to come to AOL."

I am sure this puts Revenue Science (Tacoda’s biggest rival) in sort of an odd position because AOL was one of their biggest customers and were probably competing with Tocoda to be acquired by AOL.

Next acquisition target: Revenue Science. We will have to wait and see who buys them? Any takers? Valueclick?

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  1. Perhaps Amazon, eBay or even a large consulting firm will buy them. I know that sounds odd but Amazon, for example, is one of the largest consumers of this web analytics and they need to know not only what their site is doing but those of their potential syndication partners.

  2. Andy Krieger of NYC4:14 PM

    Tacoda and Revenue Science are only competitors by way of Marketing Jargon. Both companies have vastly different capabilities and Tacoda's Scale is extremely questionable. On the other hand, Revenue Science is now the only independent left and Tacoda's acquisition essentially places a minimum bid that is only going to increase in value as the agencies start to use BT more and more...


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