Vodafone and Yahoo! have formed an alliance which pools their collective expertise to create a new advertising service for mobile devices. The partnership names Yahoo! as Vodafone’s exclusive display advertising partner in the UK.

Yahoo! can leverage its sizeable sales force and technology team to drive the most benefit from Vodafone’s unique mobile advertising opportunities. Yahoo! will use its ample advertising prowess to provide a variety of mobile advertising formats across Vodafone’s varied content services.

The new service is planned to be initiated in the UK in the first half of 2007. Certain plans are structured to give savings on certain Vodafone services to customers who agree to accept carefully targeted display advertisements. This service could extend to other Vodafone mobile assets including the Vodafone live! portal, games, television and picture messaging services.