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There have been other unwelcome metrics for Google recently. IDC reported that Google's share of the U.S. Internet advertising market dropped slightly in 2007 from the year before. Although hardly catastrophic, reports like that are nonetheless uncharacteristic for Google and raise eyebrows when measured against its stellar performance over the past five years.
Adding to the sense of urgency is that, while Google was waiting patiently for the DoubleClick acquisition to clear regulatory hurdles, competitors like Yahoo, Microsoft and AOL were busy snapping up digital marketing companies and beefing up their capabilities to take advantage of the growing online ad market.
That's why the closing of the DoubleClick acquisition arrives at a particularly interesting time for Google, especially since DoubleClick is expected to boost Google's anemic display advertising business and thus allow the company to add some diversification to its revenue stream. Probably sensing this, Wall Street on Tuesday rewarded Google with a 6.3 percent boost to its stock price, which closed at $439.84.
DoubleClick Deal Good Timing For Google [pcworld.com]
By the same token, if the integration goes well, Google's current advertising clients and publishing partners should benefit from the fusion of DoubleClick services and tools with Google's, resulting, conceivably, in a single display/search ad platform, single buying environment and single reporting structure, Sterling said.
I wonder if they'll integrate DoubleClick into Adsense?
i hope not. at least not in the way they mixed display ads with text ads beforehand.
display ads is a totally different business - which google has painfully experienced in recent years. they never got a foot in the door with that product. now they must pay extra attention on how to properly integrate the doubleclick display banner business without making the same mistakes.
for that, they have to completely separate the bidding process on contextual ads from graphical ads. why? texts ads are mostly pure information, whereas image/video ads contain an additional branding part that has to be put down on the advertisers' account. you simply cannot mix the different purposes the ads serve into one and the same auction in order to pan out.
i hope they finally realize the mistakes they made and that doubleclick doesn't go the same route as their present non-starter-product display ads.