Bebo extends Yahoo! advertising sales contract

LONDON - Bebo is extending its ad sales contract with Yahoo! for six months as the social networking site sheds a third of its workforce.

Yahoo!: Bebo extends ad contract
Yahoo!: Bebo extends ad contract

Yahoo!'s advertising sales contract with Bebo, which includes most of its display and video ads, ended in December last year but the social networking site has extended the contract for a further six months.

AOL made significant cutbacks at the social networking site it acquired for $850m in 2007 and shed around 70% of Bebo's workforce in the UK at the end of last year, as part of its global restructuring plans following its separation from Time Warner last.

The extension is seen as a short-term measure, with AOL planning to further integrate its UK operation, and Bebo's sales are expected to be bought in-house when the Yahoo! contract ends.

Bebo's UK sales team is expected to fold into parent company AOL's sales force and follows the recent rebranding of advertising division Platform A to AOL Advertising.

The newly aligned sales team will not include Simon Podd, Bebo's head of sales, following his departure from the social networking site in December last year. Podd left Bebo to join RDF Media as head of sales for its commercial and digital division, RDF Contact.

Yahoo! has handled advertising for Bebo since 2007. The deal was Yahoo!'s first with a social networking site, as it aimed to target brands seeking to reach 13- to 24-year-olds.

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.


Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

1 Martin Freeman fronts Vodafone UK's first integrated ad campaign by Ogilvy

The Hobbit and Sherlock star Martin Freeman plays a rude wedding guest in Vodafone's first integrated ad campaign since the telecoms giant moved its UK ad business to Ogilvy & Mather earlier this year.

Case study: How 'This girl can' got 1.6 million women exercising

1 Case study: How 'This girl can' got 1.6 million women exercising

"This girl can" was based on a powerful insight: that the fear of judgement by others is the primary barrier holding women back from participating in sport.

Just published