Yahoo Buys Display Ad Startup Dapper

Yahoo (NSDQ: YHOO) has made a small technology acquisition, buying up Dapper, a four-year-old startup that helps marketers build dynamic ads, the two companies just announced. Dapper’s technology lets advertisers automatically show ads that match a visitor’s behavior, location or interests. For instance, Dapper says it helped a major real estate company feature properties on its ads on real estate sites that were similar to those that visitors were searching for on the sites.

Yahoo says it will use Dapper to “more efficiently deliver dynamic and personalized ads for customers across more of our network.” The two companies were already partners but Yahoo says that “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.”

Financial terms of the deal, which is expected to close next quarter, were not announced. Dapper had raised $3 million in funding three years ago, according to Crunchbase.

Here’s a video that features some of the elements of Dapper’s technology: