AOL to buy social network site Bebo for $US850m

Stuart Corner
Friday, 14 March 2008 01:02

IT Industry - Market

Analyst eMarketer predicts that by 2011, $US4.1 billion will be spent worldwide for social network advertising – a dramatic increase from the $US480 million spent in 2006. According to AOL, in 2008 alone, global ad spend in the social networking arena is expected to increase 75 percent year over year to $US.1 billion.

AOL says that, in recent months, it has "moved aggressively to bolster its position in areas critical to its emergence as a leading advertising-supported Web media and marketing company." It has spent nearly $US1 billion on online advertising acquisitions, including Adtech, buy.at, Lightningcast, Quigo, Tacoda and Third Screen Media to create Platform-A, which it claims is "the top display ad serving network focused on helping marketers build brands that perform online.."

AOL has launched 17 international web sites over the last year and says it plans to expand to 30 countries outside the US by the end of 2008. AOL teamed up with HP last September to include localised versions of the AOL.com portal and other AOL services as the default setting on HP computers shipped in the United States and around the world. Bebo, which has announced plans to launch in five countries this year, will be featured prominently in AOL's international expansion efforts after the deal is closed.