Yahoo begins ad pact with German social-network site

Yahoo's ad network extends to Germany with a partnership with Netlog. Yahoo will promote Netlog, and Netlog will show display ads supplied by Google.

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Yahoo has agreed to start marketing Netlog and showing ads on the German social-networking site, the companies said Tuesday.

The multi-year partnership makes Yahoo's ad network the exclusive supplier of display, or graphical, ads, the companies said. While textual ads appearing next to search-engine results have proved powerfully profitable for Yahoo's top rival, Google, the market for showing display ads has many more players jockeying for top position.

Netlog is used by 1.3 million different people each month, and through the deal, advertisers can use Yahoo or Netlog to reach more than a third of German Internet users, the companies said.

In particular, Netlog is good for showing ads to younger people. "We are very glad to be able to offer our advertisers and agencies an even higher level of reachability within the 15- to 24-year-old target group," said Heiko Genzlinger, commercial director of Yahoo Deutschland, in a statement.