o and Taboola sign a “30-year” exclusive advertising agreement //

Yahoo today announced that it has purchased nearly 25% of Taboola content recommender as part of an exclusive 30-year advertising agreement.

What Taboola gets. Taboola, which The Wall Street Journal calls a “clickbait titan”, will be the sole source of native advertising across all Yahoo’s digital properties over the next three decades. They will share the revenue from these ad sales which they estimate will generate at least $1B in revenue each year.

What Yahoo gets. Yahoo will receive 24.99% of Taboola’s outstanding shares in return and will also install a representative to its board of directors. Yahoo will be able to use Taboola technology to manage its large native advertising business.

Deeper: The new Taboola feature combats fake news on social networks

Yahoo, which was privatized in a $5 billion deal last summer, claims it has nearly 900 million monthly users through properties such as AOL, TechCrunch, and Yahoo Sports. Taboola, which was made public in 2013, claims it has 9,000 partners and 500 million users each day. The stock price of the company, which had fallen 61% before today’s announcement was made, rose 55% in midday trading.

Why we care. Digital advertising will recover from its current slump. Digital advertising is unlike any other channel in terms of its reach and targeting capabilities. Jim Lanzone, Yahoo CEO, knows this and is positioning the company to take advantage of it. Although the 30-year exclusivity might not be significant, it has attracted everyone’s attention because it was so well-designed.

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