Yahoo has acquired ad targeting and delivery firm Blue Lithium for US$ 300 million, reports Advertising Age.

The purchase is the latest in moves by major players to coin the behavioral advertising market.

Blue Lithium adds a significant number of capabilities and inventory to Yahoo's existing ad offering.

The newly-acquired company boasts relationships with major publishers, which will continue after the purchase. Its inventory will be incorporated into Right Media Exchange, which Yahoo just acquired in full a few months ago.

Blue Lithium will run ads on Yahoo's network of fully-owned sites and services, bringing significant targeting power to ad delivery, something Yahoo aggressively began to target with the introduction of its SmartAds offering to the market.

Yahoo hopes adding a performance-based system will bolster the income from marketers looking for more than just brand impressions, characterized as a strength for the company.