Google, AOL launch new search advertising solution

Advertisers will be able to use Google's advertising system to buy ads targeted specifically to AOL sites such as MapQuest, Moviefone and the AOL.com portal under a program AOL launched on Monday this week.

by Helen Leggatt

aol%20search%20logo.gif AOL is one of Google’s biggest advertising partners, and accounted for around 7 percent of its 2006 revenues. A new deal with Google, announced this Monday, should bolster AOL’s ad revenue to replace its dwindling internet access business while enabling advertisers to better target users.

The new service, called “AOL Search Marketplace”, will be driven by a white-label version of Google’s AdSense. It will offer advertisers more targeting ability via search advertising by allowing clients to select the sites on which they would like ads to appear.

AOL's search engine has displayed ads from Google's AdWords network for quite some time. However, until now, AOL couldn't directly offer its advertisers ad space on its search engine site.

"We're leveraging our [years-old] partnership with Google to introduce new advertising products," said Dariusz Paczuski, vice president of search products for AOL platforms. "Previously we couldn't sell ads for our Web search engine. We got what Google sent our way."

The entire AOL Search network, which includes AOL.com, AOL client applications, Netscape and CompuServe, amongst others, attracts more than 36 million unique visitors each month, according to comScore’s February 2007 Media Metrix. AOL’s president, Mike Kelly, says advertisers have been asking for the ability to specifically target AOL users and AOL portals, largely due to their repeat visitor rates and communication channels which user continuously monitor.

“Our advertising clients have told us they wanted the ability to target their search advertising to users of AOL Search, and now with AOL Search Marketplace we can offer this service,” said Kelly. “We have found that there is a significant impact when search and display campaigns are coordinated. The addition of the AOL Search Marketplace enables us to offer advertisers end-to-end solutions, everything from AOL to our industry leading third-party display network to video advertising and performance ads. This will let marketers better coordinate their advertising, and build greater efficiencies into their campaigns, with AOL.”