Google Buys DoubleClick for $3.1 Billion

http://www.nytimes.com/2007/04/14/technology/14DoubleClick.html?_r=1&bl&ex=1176868800&en=a84a2d9cef4524e5&ei=5087%0A&oref=slogin

    Several weeks ago, we talked about the way Google used an algorithm to sell search and contextual based ads to advertisers with a maximum profit. However, there is obviously more to online advertising than just ads that appear based on user inputs, and, as stated in the article, Google has been looking to increase it’s range of advertisements into the realm of display advertisements. By buying DoubleClick, Google has gained control over DoubleClick’s advertisement software, which is especially effective when it comes to display advertising. This is obviously advantageous for Google, but is not the most interesting aspect of their purchase.

            As stated in the article, Google’s purchase of DoubleClick also gave it access to DoubleClick’s “relationships with Web publishers, advertisers and advertising agencies.” This adds a whole new dimension to Google’s ability to sell ads because instead of just relying on mechanical auctions for revenue, Google can now sell ads in something closer to a social network. Assuming that Google plays it’s cards right, it can assume a very powerful position in the network of web publishing and advertising groups and establish business deals that go beyond simple auctions.

Posted in Topics: Education

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