Vodafone has signed an exclusive advertising deal with Yahoo! where the internet portal will be the sole supplier of advertising on Voda’s mobile content.

Under the deal, Yahoo! will become Vodafone’s exclusive display advertising partner in the United Kingdom, providing a variety of mobile advertising formats across Vodafone’s content services. The companies plan to roll out the initiative in the United Kingdom in the first half of next year.

Customers who agree to accept targeted display ads will receive savings on certain Vodafone services, which may include the "Vodafone live!" portal, games, television and picture messaging services.

Nick Read, chief executive of Vodafone UK said: "Since we announced our intention to develop revenue from mobile advertising as part of our mobile plus strategy unveiled in May, we have carried out extensive customer trials. We will now use the experience to determine with Yahoo! how best to ensure customers, who choose to receive targeted messages, get better value as well as a richer mobile experience. This will also ensure that advertisers are given a compelling proposition."

Marco Boerries, senior vice president of Yahoo! said: "This partnership demonstrates Yahoo!’s continued focus on extending our leadership in display advertising across multiple platforms. We are excited to work with a global leader such as Vodafone to help us define the emerging world of mobile advertising and create superior experiences that deliver the most value to advertisers and mobile users alike."