Akamai Announces Merger, Launches Ad Decision Solutions

Content delivery network (CDN) kingpin Akamai Technologies Inc. (AKAM) today announced plans the merge with shopping and purchase data form acerno, largely to fuel the former’s new Advertising Decision Solution product line.

Akamai expects the $95 million cash deal to close later this quarter.

The new ad solutions, supercharged by the online shopping data, are designed to enable online advertising businesses to boost the performance of their online marketing investments by driving smarter advertising decisions based on relevant audience segments.

Akamai says its Advertising Decision Solutions are designed “to help buyers and sellers of online advertising create attractive audience segments with the necessary scale to achieve better results from campaigns and investments.”

The company claims acerno's technology will incorporate real-time anonymous Web browsing information with anonymous online purchasing data from advertisers' Web sites to present the most relevant ad. In addition, Akamai's Advertising Decision Solutions can be enabled without costly and time-consuming implementation, leading to faster time to market and increased ad revenue.

Akamai and acerno, both members of the Network Advertising Initiative (NAI), claim they’re “committed to maintaining both user privacy and customer confidentiality.” The duo added that their collective offerings rely solely on anonymous and non-personally identifiable end user information.

"As a trusted and strategic partner to today's leading online retailers, publishers, and advertisers, supporting an estimated $84 billion in e-commerce transactions on our network for U.S. retailers alone, Akamai's goal is to offer the industry's most efficient online advertising solutions, while being a leader in upholding consumer privacy,” said Paul Sagan, president and CEO of Akamai, in prepared comments. “Our investment in developing the Advertising Decision Solutions line over the past two years and acquiring acerno today, represent a strategic next step for Akamai."

Tier 1 Research claims the CDN services market has grown from $671.3 million in 2006, to $990.2 million last year, and will reach $1.31 billion by yearend.

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