After getting blindsided in the Internet search business, especially by Google Inc., Yahoo! Inc. is making sure it’s a force to be reckoned with on the next frontier of search — mobile devices. The Internet media giant snapped up mobile marketing firm Actionality Inc. for an undisclosed amount. A Yahoo! spokesperson tells Tech Confidential that the acquisition is "continuing our business of mobile 'around-game' advertising, as well as contributing to Yahoo!'s broader mobile advertising strategy for publishers."

Munich-based Actionality develops rich-media ads that can be integrated into content, such as games, at the point of downloading. The acquisition will likely fit into Yahoo! Mobile Publisher Services, a unit that lets marketers advertise on Yahoo!’s mobile services and partners MobiTV Inc. and mobile browser Opera Software ASA.

The deal also provides an exit for Actionality’s seed investor Doughty Hanson Technology Ventures, which had put an undisclosed amount into the company. Should mobile marketing growth live up to the hype — Informa Telecoms & Media predicts that global mobile ad spending this year will top $1.5 billion and reach $11.4 billion by 2011 — it could mean a gold rush of acquisitions for the sector’s startups.

Other venture-backed mobile ad network companies include: 

• Medio Systems Inc., with roughly $40 million in venture money from Accel Partners, Mohr, Davidow Ventures, Frazier Technology Ventures and Trilogy Equity Partners
• Rhythm NewMedia Inc., with $27 million from Carlyle Group, Morgenthaler Ventures, Lightspeed Venture Partners and Rembrandt Venture Partners
• AdMob Inc., with $18 million from Sequoia Capital and others
• Soapbox Mobile Inc., with $10 million from Equal Elements
• ScreenTonic SA, with $6.8 million from 3i Group plc and other investors
• Third Screen Media, which is self-funded

For more on the changing landscape of mobile content, please join us at The Deal and Tech Confidential's Convergence 2.0 conference Sept. 17 in New York City. —George White

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Tags: yhoo, Yahoo, search