Google Adwords to Private Label AOL Ads

Back in December of 2005 Google formed a strategic partnership with AOL for providing Google’s search & sponsored results on the AOL platform. This partnership is being strengthened this week with the introduction of an Adwords “private labeled” ad platform for AOL customers.

Time Warner Inc.’s (TWX.N: Quote, Profile , Research) AOL division will introduce a paid search service on Monday backed by Google Inc.’s (GOOG.O: Quote, Profile , Research) technology to help advertisers better target AOL users.

The service will help AOL capture advertising dollars from ads linked to search terms in text, in addition to the money it makes from display ads, such as banners. AOL’s search service drew 311 million queries in February, according to tracking firm comScore Media Metrix.

Personally I think that this is a wise move on both sides and I wonder if this is a trend that we’re about to see with Google providing their ad-platform to companies who would like direct control over their advertisers and inventory and so far stayed away from using Google’s ads.