Mega company Yahoo has agreed to buy Interclick, an online ad agency, for about $270 million.  So what does this mean exactly? It means more localized advertising to users.  Yahoo has seemed to struggle a little the last few years but they are going to spend $270 million on the Interclick acquisition to strengthen and maximize on localized advertising .

Interclick uses technology that will gather information on local demographics and help advertisers target those specific demos.  This will allow the advertisers to make more money and bring you information about products and services in your area.

Currently Yahoo is losing millions of dollars in revenue. Ad sellers are buying up the ad-space on Yahoo sites and selling them at much higher prices to advertisers. This acquisition with Interclick will give Yahoo data that will allow them to know the value of the space they have, maximize it and sell it at a higher price than they are currently getting.

The Yahoo merger with Microsoft Corp. has been a great one, sales in 3rd quarter were down 26%. Executives hope this will be the beginning of a turnaround for the company financially.

The transaction is slated for early 2012.  It will cost about $270 million or roughly $9 a share to Interclick shareholders.