According to The New York Times, Google aquired online advertising giant DoubleClick for $3.1 billion.
There aretwo main advantages Google gains in this massive merger. First, are the highly coveted relationships DoubleClick has nurtured with major internet publishers since 1996. Second and arguably most importantly, is the advanced ad software technology DoubleClick has pioneered.
According to Google CEO Eric Schmidt, “DoubleClick’s technology is widely adopted by leading advertisers, publishers and agencies, and the combination of the two companies will accelerate the adoption of Google’s innovative advances in display advertising.”
DoubleClick recently launched an online marketplace for adsand provides displays for sites ranging from MySpace to AOL. Providing Google with the means to expand their presence into these highly coveted ad markets. “This transaction will strengthen our advertising network by expanding our access to publisher inventory and enabling us to serve the needs of a broader set of advertisers and ad agencies,” said Tim Armstrong, Google’s president of advertising and commerce for North America.
In a related news story, the deal leaves Google the immediate victor in its ongoing battle with Microsoft for online advertising supremacy. “Keeping Microsoft away from DoubleClick is worth billions to Google,” RBC Capital Marketsanalyst Jordan Rohan said.