Yahoo Acquires Ad Start-Up Dapper

Yahoo doesn’t just shed top execs–it actually buys stuff related to its core online advertising business!

Thus, today, it announced the purchase of Dapper, an ad creation and optimization start-up.

Dapper, Yahoo (YHOO) said, “enables advertisers and agencies to quickly and easily build dynamic ad creative, leveraging data to automatically show the right product, offer, or message with each impression.” Which means it’s similar to Teracent, the ad optimization startup that Google (GOOG) bought in November 2009.

Dapper is based in San Francisco and has received $3 million in funding from Accel Partners and entrepreneur Mitch Kapor.

Terms of the acquisition were not released.

Here is the official Yahoo press release:

Yahoo! to Acquire Dapper; Extends Leadership in Display Advertising with Dapper’s Ability to Drive Performance and Efficiency with Creativity and Science

SUNNYVALE, Calif.–October 5, 2010 –Yahoo! Inc. (NASDAQ: YHOO) today announced the company has signed a definitive agreement to acquire Dapper (www.dapper.net), a technology platform providing dynamic display ad creation and optimization. Dapper enables advertisers and agencies to quickly and easily build dynamic ad creative, leveraging data to automatically show the right product, offer, or message with each impression. Dapper’s capabilities combined with Yahoo!’s already deep consumer insights will further enhance Yahoo!’s ability to deliver customized and relevant advertising.

“Yahoo!’s unique combination of Science, Art and Scale connects advertisers with consumers in ways that drive results,” said Frank Weishaupt, VP, North America Ad Marketplaces at Yahoo!. “Smart Ads will continue to be an important component of display advertising and the acquisition of Dapper will help Yahoo! to more efficiently deliver dynamic and personalized ads for customers across more of our network.”

The acquisition builds upon Yahoo!’s current display advertising leadership and will accelerate the adoption of Yahoo! Smart Ads. Yahoo! currently partners with Dapper, along with others in this space, and owning this technology will help the company deliver innovative solutions to an even broader range of advertisers and integrate dynamic ad serving into key Yahoo properties. Yahoo! is committed to the Smart Ads program and remaining open to working with innovative third parties in addition to providing a proprietary solution with the acquisition of Dapper.

“Yahoo!’s product strategy is focused on creating engaging and meaningful experiences that keep users entertained and informed,” said Dev Patel, VP, Advertiser and Publisher Solutions at Yahoo!. “Utilization of consumer insights to deliver relevant consumer and advertiser experiences are built into our technology from inception and Dapper’s capabilities will further enhance the experiences we deliver.”

Dapper was founded by Eran Shir and Jon Aizen in 2006 with a vision to transform display advertising with personalized, relevant content.

“The Dapper team is thrilled to be joining Yahoo!, already the largest and most successful force in display advertising,” said James Beriker, President and CEO of Dapper. “The addition of our technology platform will bring advertisers and agencies a highly scalable solution for building and optimizing dynamic ad campaigns with the reach and quality of Yahoo!’s network.”

Financial terms of the transaction were not disclosed. Yahoo! expects to complete the acquisition in the fourth quarter of 2010.