AOL is acquiring Tacoda to obtain access to behavorial targeting technology

The consolidation in the online ad market continues. AOL has agreed to acquire Tacoda, a U.S. company that offers behavioral targeted ads.

Behavioral ads, which are relevant based on a person's online behavior, are the next phase of online advertising. A few weeks ago, Yahoo launched SmartAds, which combines behavioral information with demographic information in ad serving.

Behavioral targeted ad spending is projected to nearly double next year to $1 billion and then nearly triple to $3.8 billion by 2011, according to research firm eMarketer. Earlier this year AOL acquired Third Screen Media (for mobile ads) and AdTech AG (ad serving). AOL purchased video ad firm Lightningcast last year and Advertising.com, the largest third-party display ad network, three years ago.