The online buzz about a speculated merger between AOL and Yahoo intensifies this week, as sources close to the matter tell Reuters that AOL is actively exploring options to break up its business with the hope that Yahoo may buy some of its parts. For marketers, this inspires questions about the search market, since the two sites seem to fill a similar content-focused, display ad niche.
Insiders told Reuters that AOL is considering dividing its dial-up internet service and its display ad business, with the latter going to Yahoo. Though the sources were not identified, they indicated that AOL hadn't approached Yahoo about the plan at press time.
If AOL and Yahoo's web properties were combined, marketers who currently prepare ads for each site may find a broader online audience in one place. Reuters explains that Yahoo has a strong following for its sports, finance and general news content, whereas AOL's strength is in its maps and entertainment features.
Plus, the display ad formats available on each site may be appealing to marketers who want to create ads for the combined properties. Brafton has reported that Yahoo may be offering some exciting new display ads in light of its acquisition of display ad firm Dapper, while AOL's Project Devil units allow brands to create quality content within a simple display format.
New display ad options and larger audiences for them should be good news to marketers. ComScore data shows that display ad impressions grew 22 percent year-over-year during Q3 2010.
