Yahoo Acquires Associated Content

Low cost content just got a hefty endorsement.

Yahoo has reached an agreement to acquire Associated Content, the six-year old company which produces thousands of search-friendly articles written by freelancers on a wide variety of general interest topics.  Terms of the deal were not disclosed.

According to Yahoo, Associated Content manages a team of 380,000 contributors who produce content ranging from “How to Eliminate Odors from Curtain to “Tips for Selling Your Collectibles Online” to topical stories on sports, finance and news—which live on and on multiple partners’ sites—including digital properties managed by companies like Turner, Fox and Scripps. Dubbed “The People’s Media Company” Associated openly solicits contributions on its site, promising writers that they can “get published, reach millions, [and] get paid.” Per Quantcast, the company reaches 17.5 million unique users.

Yahoo, which has recently been hiring more journalists as it attempts to build out a distinctive voice for channels like Yahoo News , views Associated Content as complementing its own content offerings, allowing it to dig deeper into certain verticals.

“This the next phase for our content biz at Yahoo. said Jimmy Pitaro, vp Yahoo Media. “You will be taking the most powerful media sites in the world and extending those sites’ offering to niche content…that in the past we haven’t’ been able to scale.”

For example, Pitaro said that Yahoo Sports has previously had light coverage of soccer and lacrosse, which Associated contributors can now help bolster. The company plans to spread content from Associated on Yahoo Sports, Finance, News, Entertainment and various lifestyle sites. “Across each media vertical we will identify holes,” said Pitaro.

Plus, Yahoo plans to use Associated Content to produce articles as needed, based on what its users indicate they are interested in according to the portal’s vast streams of Web surfing and searching data. Associated Content’s collection of writers will also provide a major boost to Yahoo’s efforts in local media, “In my mind, the difference maker will be the combination of Yahoo and Associated Content,” said Pitaro. “[That will create] the most powerful content offering online today.”

The move by Yahoo comes just weeks after its top sales executive Joanne Bradford, surprised the company by jumping to Associated Content’s top rival Demand Media to become chief revenue officer. And just recently, several other Yahoo executives, including former vp of brand packaging Erika Nardini reportedly followed Bradford to Demand. Yahoo had previously been rumored to be exploring an acquisition of Demand.

Now, Associated Content provides Yahoo with an answer to Demand, as well as AOL’s similar and much publicized content project Back in March AOL unleashed hundreds of freelance reporters at the South by Southwest Music and Media Conference and Festival as an experiment in large scale, low cost content production. Yahoo CEO Carol Bartz has cited AOL of late as Yahoo’s closest rival, over Google.

Companies like Associated Content, Demand and Seed have raised fears among many that they are contributing to either a decline in quality or the deterioration of business in the journalism world. “That actually was a concern when we first went into this,” said Pitaro. However, after further examination, Pitaro said his team was impressed with quality of Associated’s work. And the company has the proven ability to drive traffic and attract top advertisers. For example, Associated Content has run campaigns for Chevrolet and AT&T.

One of its strengths has been in producing custom content for brands, something Yahoo plans to exploit. Pitaro said that Associated’s stable of contributors will enable it to produce far more branded entertainment vehicles that it is capable of currently.

Publish date: May 18, 2010 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT