Yahoo Acquires Dapper for More Dynamic Display Ads

Thursday, October 7th, 2010
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In a move to beef up its display-ad targeting technologies, Yahoo has agreed in acquire Dapper, whose technology platform provides dynamic display-ad creation and optimization. Financial terms were not disclosed.

Essentially, Dapper lets advertisers and their agencies build dynamic ads that leverage analytical data to show the right product or offer to the right audience at the right time. Dapper’s technology complements Yahoo’s work with its Smart Ads.

“Smart Ads will continue to be an important component of display advertising, and the acquisition of Dapper will help Yahoo to more efficiently deliver dynamic and personalized ads for customers across more of our network,” said Frank Weishaupt, vice president of North America ad marketplaces at Yahoo.


Dapper’s Secret Sauce

Yahoo believes the Dapper acquisition will accelerate the adoption of Smart Ads. Yahoo and Dapper are already partners, and the company is betting that owning Dapper’s technology will help it integrate dynamic ad serving into key Yahoo properties. But Yahoo made clear that it will continue working with third parties even as it moves to offer a proprietary solution that leverages Dapper.

“With Dapper, you can factor a number of variables into the platform and serve more relevant display ads to people. This is something that Yahoo had allegedly been doing with its own Smart Ads platform,” said Greg Sterling, principal analyst at Sterling Market Intelligence. “Making display ads perform better is Yahoo’s differentiator in the market. I suppose the more targeted you can make a display ad, the more you can charge for them.”

Dapper was founded by Eran Shir and Jon Aizen in 2006 with a vision to transform display advertising with personalized, relevant content. Dapper says it has cracked the code on display advertising and claims that a process that once took two weeks can now be completed in minutes with its technology. The secret…

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