Another Buy for Google
As Google Inc. continues to capture and keeps its lead of advertising in the world of the Internet and dot-com's, they have added a new addition to make their domination even stronger. DoubleClick has been bought by the King of the Internet and is just one of the newest acquirements by Google, Inc on April 14, 2007. This sale marks the highest cash deal by Google, doubling the price it paid for YouTube last year.
According to the New York Times, the $3.1 Billion sale of DoubleClick involved weeks of negotiation not only between Google but they also were reviewing offers from Yahoo, AOL and even Microsoft had their hands in the running. Ultimately, Microsoft does have more capitol than Google and has been trying to compete in the Internet advertising game for quite some time but Google's reputation could not compare.
Referred to as the Yellow Pages of online advertising, Google has made a name for itself through text-based search engine and small text ads. Buying DoubleClick gives Google the strength it needs to offer flashy banners ads, video ads that more high-end magazines use and television ads. This take-over by Google allows their AdSense program to expand even more and finally reach the high level of advertising the company has desired to achieve for the past year.
Google AdSense clients are weary about the DoubleClick acquisition. Questions about how the company will be able to manage their existing business with the new DoubleClick units without stirring up some conflict is a concern to many clients. Existing DoubleClick Web publishers and advertisers are concerned this acquirement will only help Google further its own network and if so, DC users may seek a new outlet of advertising if this occurs. Many Web publishers who use DoubleClick are tied into long term contracts and according to David Rosenblatt, the company's chief executive; they will protect their ability to remain neutral with its clients.
DoubleClick is based in New York City, specializing in software for display advertising and has very close relationships with their Web publishers, advertisers and advertising agencies, according to the New York Times. This large purchase by Google Inc. may mean more targeted ads by Internet users and Web surfers to direct niches when the two companies combine their large databases of information.
The chief executive of Google, Eric E. Schmidt explained, 'This merger is really a part of a global growth strategy for Google' By making this purchase, this will allow the company to expand their search advertising campaign with an even larger Internet presence.
'Keeping Microsoft away from DoubleClick is worth billions to Google' Jordan Rohan stated, an analyst with RBC Capitol Markets. The two powerhouses of the computer world are fighting for the top and control of everything and anything that concerns computers and software. Microsoft has been trying to get into the Internet and search engine game with Google and keeping DoubleClick away still gives Google the top spot away from them as well as Yahoo, their other competitor.
Google has been trying to get into the display advertising business for a while but couldn't make the ties it needed. By purchasing DoubleClick, it has now made those connections and will connect to the larger players in a very short amount of time.
In the past year and a half, Google Inc. has continued to find ways to consistently grow their business. As many watch their stock increase to record highs each quarter, Google has found their target market early in their career and has run rampant with it. With their search engine algorithms that enable direct advertising to be displayed on Web pages search results to their AdWords program that promotes their products and services with targeted advertising, Google continues to be the leader of the Internet.
The acquirements of Neven Vision, an online photo search company; YouTube, an online video company; JotSpot; and Adscape Media Inc., continues to help Google grow into the empire of the Internet it plans to become. From a search engine to now offering multiple services of e-mail, blogs, video hosting, photo hosting, online communities, Web-based services, and with their newest purchase of DoubleClick, Google will continue its rise to take over the Internet with display targeted media advertising.