Mar 14, 2008

Google-DoubleClick deal: online ad business to enter a new generation

Google once again overtook its competitors, and this time in online advertising business:

“European regulators on Tuesday approved Google's $3.1 billion takeover of the $37 billion online advertising company, DoubleClick, clearing the final impediment to a deal that would strengthen Google's already powerful position on the Web.” (International Herald Tribune)

Google now has the power to control significantly the online advertising business, by moving in a new part of “display ads”; a part, it does not have the dominance before.

Google’s chief executive officer, Eric Schmidt, quoted by International Herald Tribune said, “With Double Click, Google now has the leading display-ad platform, which enable us to rapidly bring to market advance in technology infrastructure that will dramatically improve effectiveness, measurability and performance of digital media for publishers, advertisers and agencies…”

In the other hand, some worries have raised between consumers about the privacy of Internet users. Google and DoubleClick, both, gather large quantities of data on Web surfers in order send them relevant ads.

But, the European Commission has dismissed privacy worries. The commission has said these two companies work in different parts of the market, and also consumers are still free to opt to other confident ad-serving services such as, services owned by Microsoft, Yahoo, and AOL.

Microsoft, the greatest opponent of the Google-DoubleClick deal, though, did lobby the commission to block or impose conditions on the Google-DoubleClick deal, but the commission approved it.

With this integration, Google’s competitors, including Microsoft, Yahoo, AOL, and other online businesses will experience a shock in their businesses.

About a couple of weeks ago, Microsoft offered a deal to Yahoo to buy some shares of that company to be able to compete with the “super-ad business” Google. But the offer was rejected by Yahoo. Now, with the approval of the Google-DoubleClick deal, it will strengthen Microsoft’s argument that Yahoo should better decide quickly.

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