Alex Kinnier, a Group Product Manager at Google, has shed some additional light on why Google went after DoubleClick in April of this year, an acquisition that is still in process of completing.
The post first of all provides a short history lesson on how online advertising ha evolved since its birth. We then are reminded what ad serving actually is and how it works. Before revealing the exact reasons why Google is buying DoubleClkick, the author points out some differences between the two companies – Google sells ads while DoubleClick provides ad serving.
As for the more specific reasons for the acquisition, the following summary is provided:
1. DoubleClick’s products and technology are complementary to Google search and content-based text advertising business, and provide them new opportunities to improve online advertising for consumers, advertisers and publishers.
2. Historically, Google has 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.
3. By combining Google’s infrastructure with DoubleClick’s knowledge of agencies and publishers, they can create the next generation of more innovative ad serving technology, one that significantly improves the efficiency and effectiveness of online advertising.
4. To manage ad inventory, some of the largest publishers use DoubleClick DART for Publishers – but a good portion of it goes unsold. It’s Google’s view that the combination of DoubleClick and Google will help these publishers succeed by monetizing their unsold inventory.
No mention is made of what they plan to do with Performics, a search marketing company they will inherit once the acquisition goes through.