| 9:53 pm on Apr 13, 2007 (gmt 0)|
Wow, changes the whole makeup. Guess Google is now officially an ad agency that just happens to dabble in search.
| 10:17 pm on Apr 13, 2007 (gmt 0)|
Google has acquired it's first affiliate network - DoubleClick owned Performics. Makes sense that they have one of the cleanest in terms of merchant expectations and quality control. Performics is definitely a hobbled in terms of technology, but Google probably already has better. CJ (valueclick) and Linkshare up for grabs now?
Doubleclick also brings them some adserving tech they probably don't need, but more importantly, some more agency-experienced sales staff and a way cooler NY office than they have now - assuming DCLK still has that converted 6th floor skating rink.
| 10:24 pm on Apr 13, 2007 (gmt 0)|
Checkmate to MSFT
| 10:27 pm on Apr 13, 2007 (gmt 0)|
Announced that it'll be for over $3 billion
|Seeking to expand its already well-honed ability to sell targeted Internet advertisements, online search leader Google Inc. said it has agreed to pay $3.1 billion in cash to acquire ad-management technology company DoubleClick Inc. |
Story from Yahoo News [news.yahoo.com], released this afternoon.
| 10:55 pm on Apr 13, 2007 (gmt 0)|
The conflicts of interest are almost too many to list. This should make a lot of people nervous about their data.
| 11:10 pm on Apr 13, 2007 (gmt 0)|
|Google and DoubleClick said their combination will offer media buyers and sellers more powerful tools for targeting and analyzing online advertisements and "serving," or placing them, on an even larger network of Web sites. |
Two questions arise from this:
1. Are they including the Performics publishers/affilates in the larger network of websites referred to?
|"It has been our vision to make Internet advertising better — less intrusive, more effective, and more useful," Sergey Brin, Google's co-founder and president for technology, said in a statement. "Together with DoubleClick, Google will make the Internet more efficient for end users, advertisers, and publishers." |
| 11:32 pm on Apr 13, 2007 (gmt 0)|
Obviously Google overpaid (in all cash too), but its more of a strategic move & Sergey's thinking would be in the big picture $3.1 billion dont matter much.
| 11:37 pm on Apr 13, 2007 (gmt 0)|
So...Google gets a large online media company and Microsoft loses another bidding war. Valueclick's stock is rising on this news but VCLK is much different than Doubleclick. CJ represents the lions share of revenue for Valueclick while Performics is only a minor part of Doubleclick. This is big news but I don't see much changing in the advertising world, other than Google becoming more of an 800 lb gorilla than it already was.
| 11:51 pm on Apr 13, 2007 (gmt 0)|
Wow, thowing away 3.1 billion just to shut MS out on a temporary basis. Google is completely insane.
| 12:07 am on Apr 14, 2007 (gmt 0)|
so any media co using DoubleClick will now make Google more powerful....is this what they want?
| 12:47 am on Apr 14, 2007 (gmt 0)|
From a copy of the press release on the DoubleClick [doubleclick.com] site:
|DoubleClick is a provider of digital marketing technology and services. The world's top marketers, publishers and agencies utilize DoubleClick's expertise in ad serving, rich media, video, search and affiliate marketing to help them make the most of the digital medium. From its position at the nerve center of digital marketing, DoubleClick provides superior insights and insider knowledge to its customers. Headquartered in New York, and with 17 offices and development hubs and 15 data centers worldwide, the company employs more than 1200 people and delivers billions of digital communications every day. |
That is HUGE! And they do have some of the biggest properties on the net on board, even via the affiliate channel.
The URL for the webcast of this afternoon's conference call [investor.google.com].
| 12:56 am on Apr 14, 2007 (gmt 0)|
|Doubleclick also brings them some adserving tech they probably don't need |
The ad serving aspects of this are potentially huge. If you look at the relationships that Google gains from publishers who use DART - that's a lot of ad impressions to fill...
What will also be interesting is how they use DoubleClick's upcoming advertising exchange to challenge Right Media, in which Yahoo invested $45 million.
| 1:34 am on Apr 14, 2007 (gmt 0)|
It's so sad. Yahoo keeps trying to get an edge--make that BIG move--and Google makes BIG moves.
Today's news talked of Yahoo expanding its ad and content relationship with (yawn) newspaper website.
This is and always has been the Google story. The owners see the big picture, even the executives of world's largest firms--Wal-Mart, GE, Ford, etc.--have never even come close to Google's ability to think big.
| 1:51 am on Apr 14, 2007 (gmt 0)|
WOW thats interesting. I guess existing members would automatically get transfered/merged.
| 1:57 am on Apr 14, 2007 (gmt 0)|
Can you say antri-trust?
The FTC will be looking at this, no questions asked.
Google can't go around buying up companies for more than they are worth in order to keep other companies (ie, Microsoft, Yahoo) from making inroads into marketshare.
Wow, thowing away 3.1 billion just to shut MS out on a temporary basis. Google is completely insane.
This was a no brainer for Google. The question is whether they will be allowed to do this.
| 2:41 am on Apr 14, 2007 (gmt 0)|
Now we know why AdSense publishers are seeing decrease in earnings. Google needed extra cash to buy a new toy.
Next week G will be reporting 1Q earnings. I guess there was enough extra cash for this purchase.
Can anyone stop them?
Who is next? My guess is Authorize.net!
| 3:03 am on Apr 14, 2007 (gmt 0)|
Anyone know of any interesting patents acquired by Google in this transaction? No big deal. Just wondering aloud . . or akeyboard.
| 3:19 am on Apr 14, 2007 (gmt 0)|
|Wow, thowing away 3.1 billion just to shut MS out on a temporary basis. Google is completely insane. |
It's not insane at all. From a purely financial POV, it's pricey, but......It takes a long time to build up a network like that and by taking the largest players off the table everyone else must build from scratch or start with much smaller building blocks. Even if MSFT could build something the size of DCLK, it might take them 5 years and by that time Google is so far ahead what MSFT does doesn't matter anyway.
YouTube on the other hand was probably a bit more insane but that might even pay out over the long haul.
Other net companies, traditional media companies, cable companies, newspapers should take a step back and think about how this is all evolving. Let Google sell your TV spots, your radio, the ads on your website and they make money off each and every transaction. Your customers turn to Google to buy your inventory and GOOG controls your market and the revenue you can generate.
There may be some strange bed fellows popping up if anyone gets serious about trying to maintain control of the media they sell and have more knowledge of their own business than Google does. Do DCLK clients start to defect to..........what is there to defect to, Atlas I guess, maybe MSFT could buy Aquantive. Does MSFT have any idea what they are doing, any plan to compete here, any realization this is not a shrink wrap software market?
| 3:28 am on Apr 14, 2007 (gmt 0)|
Man I keep saying their stock is way over valued and it just keeps going up. I am just amazed how they keep doing so well. It is like MS all over again.
Not to mention the huge amount of data google is going to get from this. You know how much google likes data. Google is probably the only company that even knows what to do with that data and how to get even more data out of it.
| 3:36 am on Apr 14, 2007 (gmt 0)|
Webwork, there was a conflict over a DoubleClick patent back around 2000, but here's one applied for in 1998 and granted in May, 2006
Method and apparatus for automatic placement of advertising [patft1.uspto.gov]
|A computer system for automatic replacement of direct advertisements in scarce media includes an advertising server for selecting a direct advertisement based on certain criteria. Transaction results of the direct advertisement placement are reported back to the advertising server, and an associated accounting system. In one embodiment, the direct advertiser's server reports transactions back to the advertising server by email. In a second embodiment, a direct proxy server brokers the user's session (or interaction) with the direct advertiser's server, including transaction processing and the direct proxy server reports the results of transactions back to the advertising server and its associated accounting system. A direct proxy provides an independent audit of transactions at a remote direct advertiser's web site. The feedback of the results of direct advertisement transactions provides an efficient utilization of direct advertising space by way of an automated computer system with a predictive model for selection and distribution of direct advertising. |
Note: (Patent 7,039,599 in case the link stops working, as often happens with the USPTO)
| 3:38 am on Apr 14, 2007 (gmt 0)|
"Now we know why AdSense publishers are seeing decrease in earnings. Google needed extra cash to buy a new toy."
| 7:05 am on Apr 14, 2007 (gmt 0)|
So...does this mean Performics will still offer custom SEO consulting?
;) That's one for conspiracy theorists, lol. Very good move by Google, yes, the numbers are pricey, but given how advanced Doubleclick's ad serving technology is, very good move. And when you consider that Doubleclick has been serving ads on so many sites, even Yahoo, MSN, AOL...Google just bought themselves a ton of potentially competitive info that they simply couldn't have acquired any other way.
Yahoo also invested in Right Media, which has an online auction similar to what Doubleclick recently said they were building & which would be online by the end of the year. Rumor had it RMX (right media exchange) was doing well, which is more than likely why Doubleclick was going that way to. When you think about it, auction for CPM, auction for CPC...makes total sense.
Smart move. Huge. Well done.
| 7:11 am on Apr 14, 2007 (gmt 0)|
I do not like this.
DoubleClick has been one of my hedges towards Google.
As a webmaster you want to diversify, now there is one less avenue to diversify in. And all my efforts to diversify towards DoubleClick has been wasted.
Google is great, I love it. But I do not want Google to be all things for all men.
| 7:42 am on Apr 14, 2007 (gmt 0)|
Wow the Google web monopoly game just keeps on growing!
I heard a rumour that they are actually just about to buy China and take over the country.
| 8:33 am on Apr 14, 2007 (gmt 0)|
Google has already become the Walmart of internet marketing. The convenience and price is going to keep us all coming back for more. Buying Double Click is a bold move, but most small advertisers never got around to mustering up the 1k minimum spend to ever test it's waters. If Google buys the YSM unit of Yahoo or the Live Search unit from Microsoft, then I'll get a little worried. But even at that is there any other comparable player to Adwords anymore? Even the biggest players you can think of is still like comparing mini finger sized monkey to an 800 pound gorilla. The only answer I have is to get out there and find niche sites to buy traffic from or sell traffic to, or try AdBrite. Try working with with second tier (mostly second rate) ad networks. It works, it isn't easy on the wallet or the work schedule, but it does guarantee a certain level of redundancy you can't get from Google alone.
No need to buy ValueClick now, this new AdSense Referrals Beta program will take a huge bite out of cj's market share. Especially when all the same advertisers using CJ also use AdWords. Anyone besides me ever notice that CJ always seems to have just over 1000 advertisers (too overpriced for medium to small advertisers) and the quality of search123 traffic proves to be overpriced at .05 Where's the value?
| 9:37 am on Apr 14, 2007 (gmt 0)|
Do you see it has been a Friday the 13th News!
This is huge!
I guess soon there will come a time when every little product is going to have Google printed on it!
| 10:12 am on Apr 14, 2007 (gmt 0)|
I'm interested to know what will happen with the DART search platform - keyword and bid management across all major PPC platforms.
Will AdWords evovle so, at the touch of a button, your keywords, bids and ads are all replicated across YSM and MS AdCenter?
Could YSM etc afford to simply decline DoubleClicks access to their API? Perhaps in the long run, they can't afford not to?
| 10:47 am on Apr 14, 2007 (gmt 0)|
Not sure of technical details, but from a broad perspective this is a big deal for Google.
Meaning it controls a lot of online advertising..and doubleclick and adsense can maybe benefit from interacting with themselves with adsense poised to introduce pay per event advertisement..
In effect adsense gets lots of pay per event ads, maybe some of ppc will convert to ppe and vice versa.
All in all increase in ad inventory...
Later maybe increase in adspace as good will definately encourage open (seemingly) auction for ppc and ppe ads. Doing this in such a way keeping trackers who want free traffic would be a challenge in between.
I would recommnd google as a share as well....speaking of abroad general public eve view not talking in terms of pe ratios etc.
| 12:27 pm on Apr 14, 2007 (gmt 0)|
now google finally gets a grip on the broad area of a) image and video ads, b) affiliate marketing and c) full spectrum of accounting methods (cpm, cpc, cpa).
not that they didn't try on their own before. they just weren't successful. remember their only successful product to date is cpc text ads.
|"Now we know why AdSense publishers are seeing decrease in earnings. Google needed extra cash to buy a new toy." |
| This 52 message thread spans 2 pages: 52 (  2 ) > > |