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James Perrin

Google Purchase Admeld for $400 million

10th Jun 2011 PPC Blog, Display Advertising, News, Industry News 2 minutes to read

Google are on course to make another huge acquisition, this time it’s the ad optimisation platform Admeld that have caught the search engine’s eye. But Google will have to part with a reported $400 million and get it through the usual regulatory approval.

The news was first reported by Tech Crunch and has since been covered by multiple sources. The acquisition sees Google attempting to tackle display advertising, something they have struggled with in the past.

Admeld, along with only a few other ad optimisation platforms, help publishers sell their ad inventory. By working on behalf of the publisher they use their expertise and latest technology to find new revenue streams and bid the best prices for each ad inventory from different ad networks.

For Google, the acquisition represents a further push to get more out of the display advertising business which already is one of the consistently huge as spend methods [See: Online Ad Spend in the US Predicted to Soar]. Google’s Vice president of display advertising, Neal Mohan, has also predicted that this form of advertising is set to become a $200 billion industry, with display ads focussing on quality rather than quantity.

But it is the technology that Admeld use which is of most interest to Google. The technology allows publishers to sell ads in real time. Once a user enters a website, advertisers can bid instantly from a publisher. So that publishers choose the right ad network, the technology Admeld uses can help them choose the most appropriate and thus effective ad network.

Google’s acquisitions continue despite constant government interest into their affairs [See: Google Readying itself for a Big Hit from US Regulators] and this latest deal still in fact needs to be cleared by government officials purely on the basis of Google’s market share and the sheer size of the deal.

It isn’t the first time Google’s display ad team have struck a deal with an ad start up. Last year Invite Media was bought, whilst in 2009 Teracent was purchased and in 2007 Google acquired their DoubleClick ad exchange platform. Some might argue that a rather obvious trend is forming, and with the continuous growth within the display advertising sector, it’s easy to see why.

If all things go according to plan (subject to regulatory approval) then Google will have another ad purchase on its hands – will it be effective? Will they gain momentum within the display advertising sector? Only time will tell.

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