Yahoo UK & Ireland has reached an agreement with Bebo to sell ads on the social network, reports MediaPost.

The deal gives Yahoo the ability to sell display ads for users in those two countries. Bebo says putting display ads in Yahoo's hands allows them to focus on creating more customized and original sponsorships and other campaigns.

Bebo has a predominantly UK-based young audience and hosts the LonelyGirl15 spinoff Kate Modern. It is also collaborating with Sony for a new web drama, Sophia's Diary.

The deal marks Yahoo's first foray into ad-selling on social network sites. The company also is creating a toolbar for people to monitor their Bebo network even when not on the actual site.

In mid-May, rumors abounded that Yahoo may purchase Bebo for approximately US$ 1 billion.