Tech Shout!

Yahoo has announced that it has tied up with privately-owned internet social networking site Bebo to work together on advertising in the UK and Ireland.

After this collaboration, Yahoo will sell a major portion of Bebo’s displays and video advertising in the UK.

In a statement issued, Yahoo maintained that the agreement would “substantially increase” its advertising range and assist it in more effectively targeting younger demographic users lured towards social networking sites.

This is the very first time that Yahoo has agreed to supply advertising to a social networking site.

This move is thanks to the planned assessment of Yahoo’s operations that were made by Yahoo’s new chief executive and co-founder Jerry Yang.

Yahoo’s competitor Google has already gotten into an advertising deal with MySpace, while Microsoft has entered a similar agreement with Facebook.

As Google is on its way to remarkably outdo Yahoo’s development and put the company down even in the stock market, Yahoo’s Yang is striving to improve the company’s situation. Furthermore, Yahoo considers social networking features such as those offered by Bebo as essential to Yahoo’s future success.

Speaking about this strategic alliance, Toby Coppel, managing director of Yahoo Europe said, “We think this is a groundbreaking move in the online advertising industry in the UK and Ireland. It’s a core step for us in building up the largest and most effective advertising network. It’s a big deal.”

In addition, Yahoo and Bebo have also announced the development of a new Bebo Toolbar that allows Bebo users to monitor their social network even when they are not on the Bebo site.

Currently, Bebo is UK and Ireland’s most popular social networking site with 11.6 million users and 38 million users around the globe. Bebo’s average audience ranges from 13 to 24 years old.

The financial terms of the deal have not been disclosed yet