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Monday, September 10, 2007

Yahoo Stays in the Online Ad Game

Yahoo became the latest Internet search engine to make a big move into online advertising networks. By buying BlueLithium for $300 million in cash, Yahoo counters somewhat similar moves by Google (DoubleClick) and Microsoft (Aquantive).

So who is BlueLithium and what do they do you ask? BlueLithium has a user base of 120 million, and has the 5th largest advertising network on the Internet. In other words, 120 million users visit the website network they have strung together from many hundreds of highly trafficked websites.

What this means to an online marketer, is that the big 3 search engines, are also the big 3 online ad networks for display ads, contextual ads etc. Just as FoundPages has evolved from mostly search marketing to online marketing, the search engines have as well.

Does that diminish search engine marketing? Absolutely not. Search is still usually more effective than any other online marketing and is our calling card. However, online advertising is a natural follow on from search marketing and uses similar talents, tools and assets.

We have found in some cases than contextual advertising is more effective than even search advertising. Contextual ads are displayed beside related articles, blogs, videos and even email (like Gmail). This is similar to traditional advertising whereby an ad is 'placed' articles that will be welcomed by the audience reading the article. eg. ads on 'victoria condos' beside an article on retiring in Victoria.

You can expect to hear more from us (and Google, Microsoft and Yahoo) about online ads - all types of them.

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