Yahoo nabs mobile advertising startup AdMovate in latest acquisition

Yahoo has acquired AdMovate, a startup which specialises in mobile advertising, in an undisclosed deal.

The tech giant says the purchase is part of a wider push to invest more deeply in mobile advertising and the buying of advertising space based on data, something which is widely seen as the future of online ads.

"AdMovate has created sophisticated technology that helps marketers reach their desired audience at the right time and place. This is especially important for mobile ad experiences that engage consumers on smaller screens," said Scott Burke, Yahoo's SVP of display advertising and advertising technology.

He added: "This acquisition is part of our efforts to invest further in our ad tech platforms — Apt, Genome, and Right Media — and make buying easier for advertisers and agencies. AdMovate's personalisation technology accelerates our capabilities in mobile advertising, and we gain an exceptionally talented technical team."

AdMovate's engineers will now be integrated into Yahoo's display advertising team, so it seems the move may be more a purchase of talent rather than business.

Yahoo will certainly be hoping the new expertise can provide some fresh ideas - the company's display ad revenue fell by 11 per cent last quarter.

Despite this, the firm's stock did surge to a five year high on Wednesday, pushed by the success of its stake in Chinese e-commerce firm Alibaba, which is bought in 2005.

The purchase of AdMovate is the latest in a buying spree aimed at boosting Yahoo's services and talent pool, since CEO Marissa Mayer took control of the firm a year ago.

The biggest and most high profile acquisition has been Tumblr, for which the company paid $1.1 billion (£723 million) in May.