Blogs & Comment

Google's ongoing foray into online display ads

With its latest move the search engine giant keeps on pushing into the industry.

The search engine giant finally announced its acquisition of New-York online advertising yield optimization company Admeld earlier this week.

What’s been touted as an approximate $400-million deal, according to the New York Times and other sources, shows Google’s intent to throw its weight into developing its display advertising business and add to its already acquired arsenal of Invite Media and Double Click.

The display advertising industry has evolved to include buying audiences and cookies, which help establish users’ browsing history, from simply purchasing ads based on the website’s content. Ads can now be tailored towards the user’s ongoing Internet use.

But real-time buying (RTB) is an additional element that’s garnered interest because it boasts more precise targeting and allows flexibility for advertisers on when to deliver an ad to a user.

In an interview with Digiday, Neal Mohan, vice-president of display advertising at Google, said the company was purchasing Admeld’s tech team and its strong relationships with publishers to help them manage ad optimization.

Jay Sears with Ad Age argues that the California-based company’s move is all about buying more RTB.

Jeff Lancaster, managing director of search engine marketing company Outrider, said the RTB technology can assist its ad-serving platform Double Click.

Interestingly enough, Admeld’s competition, PubMatic, said in an article that Google’s move to buy the company benefits them.

But the deal isn’t completely sealed yet with murmurs that the sale will likely be stalled for sometime due to regulatory scrutiny.

If anything, it looks like the company’s move into display ads in the past few years has taken effect in the United States with Google overtaking display ad leader Yahoo, according to an IDC report released late last month.