In April of this year, Google announced that will purchase DoubleClick, much to the dismay of Microsoft who fought this move with all its might.
What is Adserving?
Adserving is basically the procees by which banner ads are served on the internet. DoubleClick was the first and now biggest adserver company which explains why they were bought out by Google.
Why would Google want to purchase a company like DoubleClick?
Its all about control and dominance. Text Based ads account for approximately 40% of total ads on the internet while banner ads account for another 40%.
As Google’s main revenue source is advertising. By acquiring Double Click, Google ensures that it not only controls the bulk of the market share in text-based ads but also the bulk of the banner ad market so in total it will control the bulk of the 80% of ads served on the internet. et voila. the GOOG shareholders are all happy and satisfied.
Here are the official reasons Google are giving as a rationale for the DoubleClick purchase:
- DoubleClick’s products and technology are complementary to our search and and content-based text advertising business, and give us new opportunities to improve online advertising for consumers, advertisers and publishers.
- Historically, we’ve not allowed third parties to serve into Google’s AdSense network, which has made it hard for advertisers to get performance metrics. Together, Google and DoubleClick can deliver a more open platform for advertisers, and provide the metrics they need to manage marketing campaigns.
- By combining Google’s infrastructure with DoubleClick’s knowledge of agencies and publishers, we can create the next generation of more innovative ad serving technology, one that significantly improves the efficiency and effectiveness of online advertising.
- To manage ad inventory, some of the largest publishers use DoubleClick DART for Publishers – but a good portion of it goes unsold. It’s our view that the combination of DoubleClick and Google will help these publishers succeed by monetizing their unsold inventory.
Do you buy it?
You may also like -
