Bebo offers targeted media in wake of takeover by AOL

by Andrew McCormick, Media Week 18-Mar-08, 10:40

LONDON - Social network to use AOL's Platform A technologies to deliver ads users want.

Bebo plans to deliver targeted media to users for the first time, which will then act as a basis for delivering ads, following AOL's $850m (£424) takeover of the social network.

Bebo intends to use the array of targeting technologies housed within AOL's Platform A unit to deliver relevant content from media owners such as Sky, ITV and Channel 4 - three of the 400 media owners that have signed up to Bebo's Open Social project.

Joanna Shields, Bebo president, said the social network's policy of carrying one ad per page was unlikely to change. She added: "We have to be clever in preserving the user experience and delivering ads that people want. What's exciting is that we can target media to our users and deliver the right ad on that basis.

Bebo industry reaction

"It's not like we're combining with the AOL portal. What it gives us is access to amazing social networking products such as AIM and ICQ."

Time Warner's investment also suggests the company is not looking to sell AOL, despite recent speculation that it might do so.

"The deal is very interesting and shows AOL clearly trying to catch up, recognising that social networks are the next generation of portals," said Stuart Sullivan-Martin, chief strategy officer at Mediaedge:cia.

Alex Burmaster, European internet analyst for Nielsen Online, said: "It's crucial that AOL does not alienate or antagonise Bebo users. There will always be churn in situations like this, but AOL will have to work hard to maximise commercial opportunity, while minimising churn."

Onlookers are nervous about how AOL will handle ads for the network. Alex Millar, head of Jam, I-Level's social media unit, said: "Bebo sells its integrated solutions and standard display advertising separately and it should keep those teams separate, retaining the Bebo sales team, which seems very good."