AOL has acquired digital advertising company Pictela, AOL announced Thursday.

"Pictela is an outstanding fit for AOL as we re-imagine the intersection of content, advertising, and the consumer experience," Jeff Levick, AOL's president of global advertising, said in a statement. "Our goal is to create the highest quality ad content for the best user experience and monetization opportunities, and we're excited to work with innovators who share our vision for excitement for what brand advertising on the Web should be."

Pictela produces ads that feature high-definition media and interactive content like videos, photos, and coupons. The company's ads have run on sites including AOL, Pandora, and Hearst Corp.

A few months ago, AOL started a similarly formatted advertising group that it calls Project Devil, from which content will appear on all of AOL's Web properties by March 2011, the company said.

New York City-based Pictela was launched in 2009. It will be a business unit within AOL Advertising, and it will retain its 18 employees, who will continue to work at the company.

"We believe that joining AOL is an outstanding opportunity to combine with a company that is as committed to redefining brand advertising on the Web as we are," said Greg Rogers, Pictela co-founder and chief executive. "AS one of the world's premium publishers, AOL will not only be one of our biggest customers, it will also be our greatest resource with the scale, technology, and commitment to world-class content to help realize the true potential of the online environment."

Although the terms of the deal were not disclosed, The Wall Street Journal said "a person familiar with the matter" valued the deal at around $20 million.

AOL has made a series of acquisitions this year including TechCrunch, online video platform 5min Media, StudioNow, and Thing Labs.