Dulles-based AOL on Monday introduced a new service that uses Google’s advertising system to target ads on AOL-owned Web sites.
AOL’s search engine already had used Google’s advertisement service, which displays ads based on the terms the user searched. The new program, known as AOL Search Marketplace, allows companies to customize their advertisements for AOL users.
For example, a movie studio could purchase an advertisement that only users searching for and visiting Moviefone, the AOL-owned movie listing and information Web site, would see.
“Our advertising clients have told us they want the ability to target their search advertising to users of AOL Search, and now with AOL Search Marketplace we can offer this service,” AOL Media Networks President Mike Kelly said. “We have found that there is a significant impact when search and display campaigns are coordinated. This will let marketers better coordinate their advertising, and build greater efficiencies into their campaigns with AOL.”
This is the first time Google is offering the ability to target advertisements to specific sites. The new program is a result of a five-year partnership between the two companies. The two teamed up in 2005, when Google paid Time Warner $1 billion for a 5 percent stake in AOL. AOL has worked to change its business from one based on subscription fees to one based on advertising dollars. The company succeed in this effort last year, increasing advertising revenues by 41 percent from 2005. Also on Monday, the company announced a new local search feature aimed at providing information on bars, restaurants and other attractions based upon geography.
AOL also announced it has partnered with PriceGrabber.com to create a search engine that provides comparison pricing.
