AOL shuts down behavioural ad service Tacoda

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.

“We heard from many of Tacoda’s clients, because of the relatively small network it had, that it wasn’t a very scalable solution on its own,” says Carrizo quoted by paidContent. “Everything is being run through the Advertising.com server, which is why we needed to terminate those previous contracts. But the targeting technology that is being used is Tacoda’s system.”

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.

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Published by Reinout te Brake

Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry. Check out his games podcast; https://www.game-consultant.com

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