Yahoo ties up with Right Media Inc

In August 2005, Yahoo launched Publisher Network and it witnessed phenomenal growth in terms of revenue. Yahoo has announced another leap in publishing business; it has entered into a definitive agreement to acquire Right Media Inc.

As per the statement issued by Yahoo, after six months of testing the waters with Right Media as both a strategic investor and a participant in the Right Media Exchange, it has tied up with it. Right Media will help Yahoo extend its Publisher Network and help build a self-serve display advertising system. Right Media currently has a self-service publisher product called Direct Media Exchange that enables publishers to sign up for, manage, and optimize against multiple advertising networks in one convenient interface. They offer a set of ad network partners for you to join and you can add your own ad network partnerships into the optimization mix as well if you like.
Right Media is already an existing and established player in the publishing industry. The Right Media tools are known to provide control, openness and transparency. It appears to be sure that publishing industry is going to witness many changes and some more announcements from other player as Google could be on the way. After completion of this Right Media acquisition, Yahoo publisher Network is expected to announce lot of exciting developments.
Last year, online advertisers have been estimated to have spent about .4 billion on the Internet and it is projected to rise to .4 billion in 2010. The alliance is betting on capturing a large portion of this spends. Google is miles ahead of Yahoo in search advertising.
But, if Yahoo! is able to get the advertising technology and the execution right, it would definitely pose a threat to Google’s dominance in the online advertising business. More so, the deal provides Yahoo the opportunity to expand its graphic ads business and improve the CPM rates. The acquisition of Right Media could also aid in increase pricing and expand the size of its ad network. It also is a good brand building exercise for its much-hyped Panama Project.