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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