• by Joe Mandese  @mp_joemandese, February 14, 2008

Time Warner's AOL and IAC's and Citysearch units this morning announced an agreement to distribute their content and advertising across each other's networks.

Terms of the deal were not disclosed, but the companies said Citysearch's pay-for-performance advertising and local online content - including editorial reviews, user reviews, merchant videos, photos and offers - will gain distribution across AOL properties including AOL CityGuide, AOL Local Search and MapQuest.

AOL, in return, will integrate local advertising and content from Citysearch's broad base of local advertisers into AOL's leading local properties, offering advertisers access to more than an estimated 57 million unique users per month.

Senior Vice President AOL Search John Kannapell said the content and advertising sharing alliance would "increase the premium local advertising inventory available to advertisers through Platform-A."

Citysearch CEO Jay Herratti said it would enable Citysearch's advertisers to, "gain access to qualified local customers" on AOL's local channels, and that both companies would reap incremental revenues from the agreement.