Amidst the upheaval of scouting for a potential bidder, the advertising giant, Yahoo is attempting to resuscitate its downhill online advertising business by obtaining Interclick Inc for $270 million.
Interclick has been in the business for the last 4 years and attempts to analyze and identify the most responsive audiences with regard to marketing, by using digital media, and will now help Yahoo use the remaining ad space in more efficient way. Generally the big firms snap up these unsold opportunities which later resell it at a much higher price. Interclick, with annual revenue of about $102 million, aids the advertisers in identifying the target online audience via its open segment manager analytics platform.
It makes sense for Yahoo, which recently witnessed a drop of 26% in its earnings and that of 5% in its revenue, to try to increase its revenue, perhaps more than the Interclick’s price tag in its most-recent quarter.
Currently a large amount of small players and start ups haunts the advertising technology sector but it has also witnessed some of the biggest deals over the years, for instance Google bought DoubleClick, in 2007 for $3.1 billion while eBay earlier this year obtained GSI Commerce for $2.4 billion.
The current acquisition is the most high profile acquisition even done by Yahoo. The last significant acquisition was of the TV-tagging startup IntoNow in April ranging somewhere between $20 million and $30 million