Yahoo! has strengthened its online advertising network by purchasing internet marketing business BlueLithium.The transaction cost Yahoo! $300 million and is thought to be part of the search engine's plan to regain ground that it has lost in recent years to competitor Google.
Yahoo!'s profits have fallen over the past two years, while Google's earnings rose to $1.9 billion in the first half of this year.
Chairman of Yahoo! Jerry Yang has been working on plans to better the company's performance and recently bought the online advertising exchange Right Media for $700 million.
According to reports in Adweek, Todd Teresi, senior vice president of display marketplaces at Yahoo!, commented: "Our brand business is doing really well and we're encouraged by work with major marketers around the world.
"We have the ability to create additional opportunities within the direct-marketing space."
In order for the big players to continue to grow, they need to ensure that they can maintain the "greatest frequency and reach", he added.
Mr Teresi also stated that the purchase of BlueLithium was a logical step for Yahoo!, as a great many advertisers already rely on the internet marketing business.
Earlier this year, Yahoo! announced it was to merge two of its main advertising departments in a bid to revive the business.
The move came after the Terry Semel, its former boss, resigned following poor trading results.
