Yahoo! and AOL Canada have announced they have come to an agreement which will see each company offering each other’s premium non-reserved online display advertising to their clients.

Graham Moysey, country manager at AOL Canada, tells MiC the deal (which also includes Microsoft in the US) was struck because of advertiser demand for changes in the way digital media is bought and sold.

“This is a great opportunity for advertisers to secure premium display advertising using ad scale,” he says.

Although Moysey says AOL Canada is still very competitive with Yahoo!, this deal does open the door to future negotiations for partnerships between the two companies.

Ad opportunities in the deal include standard display advertising, with Moysey saying he hopes rich media units like AOL’s Devil will be available to Yahoo! clients in the near future.

AOL Canada also today announced the launch of its daily iPad magazine Editions in Canada and the UK.

The customizable magazine launched earlier this year in the US and has seen over 100,000 downloads, says Moysey. Advertising opportunities on the Canadian version are not yet available, with the company testing consumer interest before securing any deals. An ad partnership with BMW was recently announced for Editions in the US.