AOL is terminating its Tacoda advertising contracts as part of a bid to integrate its ad businesses into Platform A. Tacoda, which AOL bought last year for around USD275m, will now become part of Platform A’s Advertising.com, reports VentureBeat quoting an email sent to Tacoda clients.
The media blog adds that the move is likely to result in lower cost-per-thousand (CPM) rates for existing Tacoda customers, since Advertising.com reportedly offers CPM of “USD1 or less” compared to between USD2 and USD6 offered by Tacoda. This, however, was denied by Platform A president Lynda Clarizio, who claims Advertising.com is serving behavioural ads at the same rate as Tacoda. The exec says the move represents “an expansion” for Tacoda, which will benefit from Advertising.com’s larger reach.
Meanwhile, around 60 of Tacoda’s 97 employees have reportedly left the firm since AOL’s acquisition in July 2007. Carrizo declined to confirm that figure but admitted that some employees were asked to leave.