AOL has acquired Third Screen Media. Third Screen Media will operate as a wholly-owned subsidiary of AOL's Advertising.com division.

Third Screen Media connects advertisers, publishers and mobile phone carriers on a common platform, allowing ads to be managed and delivered via WAP, downloadable applications, SMS, MMS and mobile video. Dozens of leading brand advertisers, more than a hundred mobile Web publishers, and major wireless carriers participate in the Third Screen Media network.

The acquisition comes as the mobile advertising industry is growing exponentially. In the U.S., mobile advertising is expected to grow from $421 million in 2006 to $4.7 billion by 2011, while globally the market is expected to increase to $11.3 billion by the same year, according to eMarketer.

“This acquisition brings together two pioneers in the interactive advertising space,” said Thomas Burgess, founder and chief executive officer of Third Screen Media. “Advertising.com has long been the advertising network to watch, and Third Screen Media broke new ground in the mobile advertising space with our pioneering technology and industry-leading mobile network. Together, we can now offer advertisers and publishers a comprehensive suite of interactive advertising solutions for every type of device, platform and program.”

Financial terms of the deal were not disclosed.