Yahoo has agreed to acquire dynamic advertisement display specialist Dapper.
Based in San Francisco, Dapper offers tools that help advertisers adjust ad content to specific user behaviours.
Yahoo said that the technology would be added into its Smart Ads display advertising platform.
"Yahoo's unique combination of science, art and scale connects advertisers with consumers in ways that drive results," said Frank Weishaupt, Yahoo's vice president for North America Ad Marketplaces.
"Smart Ads will continue to be an important component of display advertising and the acquisition of Dapper will help Yahoo to more efficiently deliver dynamic and personalised ads for customers across more of our network."
Display advertising is becoming a hotly-contested front in the ongoing ad war between Yahoo and competitors such as Google, which entered the market just over one year ago with its DoubleClick AdExchange platform.
Display advertising was cited as a field the company wished to focus on last summer when chief executive Carol Bartz made a deal with Microsoft to hand over many of its search engine functions to the Bing platform.
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