Two of the “internet giants” continued their string of acquisitions in the advertising industry.

AOL has announced that it has bought TACODA, an online behavioral targeting advertising network, and Microsoft will purchase advertising exchange platform AdECN. Although the financial terms of the deal were not disclosed, TACODA will operate as a wholly owned subsidiary of AOL. AOL is looking to get into the behavioral targeting market that is set to increase to $3.8 billion by 2011, from $350 million in 2006. (eMarketer – June 07)

“The acquisition of TACODA will build on our advertising momentum, letting us better serve advertisers by enhancing our ability to precisely target advertisements across an even broader network,” said Ron Grant, AOL President and COO.

“AOL is a perfect match for TACODA. By combining our targeting capabilities with AOL’s existing set of solutions, we can better serve online advertisers and publishers as the market for behavioral targeting continues to emerge,” said Curt Viebranz, CEO of TACODA

This comes after AOL acquired Third Screen Media in May

Full press release HERE.

At the same time AOL’s rival Microsoft was busy tying up the lose ends on its deal to buy advertising exchange platform AdECN. Its platform is as a hub where other advertising networks can buy and sell display advertising in a real-time auction marketplace. The financial terms of the deal were not disclosed.

The exchange concept is similar to the NASDAQ which serves as the hub for financial brokerages, enabling all parties to come together and have access through a neutral party to a larger pool of supply and demand for their clients. Exchanges are a means by which liquidity is created for advertising networks by bringing together a maximum number of both buyers and sellers.

“Both Microsoft and AdECN have a deep commitment to creating the technologies and platforms that enable advertisers and publishers to maximize their ROI in the digital marketplace,” said Kevin Johnson, president, Platforms and Services Division at Microsoft.

“Joining forces with Microsoft will provide the capital and resources to enable AdECN to scale the exchange at a much faster pace, making it more attractive to the advertising networks and other traffic aggregators looking to better serve their advertisers and publishers,” said William Urschel, founder and chief executive officer, AdECN

This comes after Microsoft bought ScreenTonic in May

Full press release HERE.

M&A’s are becoming more frequent in Mobile, other recent ones include:

WPP Group Takes over 24/7 Real Media

Buongiorno acquires Flytxt and HotSMS