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Google Buys Teracent Display Ad Solution

November 23rd, 2009 Leave a comment Go to comments

Google announced today they are acquiring Teracent, a dynamic ad optimization company I referenced in an earlier post. Disclosure: I was fortunate to do some contract work for Teracent beginning in March of this year. Unfortunately, as a contractor, rather than a FT employee who is now buying rounds at the local bar.

“This technology can help advertisers get better results from their display ad campaigns,” Google said. “In turn, this enables publishers to make more money from their ad space and delivers Web users better ads and more ad-funded Web content.”

The announcement comes on the heels of Google’s deal to acquire mobile ad network AdMob in a $750M stock exchange just a few weeks ago and of course, the larger acquisition of online ad service, Doubleclick over a year ago.

So, to those who say they are so over display advertising, consider the moves Google is making.

The shopping spree is evidence they are serious about staking a claim in display, a fairly fragmented market compared to search. No single player has more than a 10% share today.

Display may not be the media darling that SMM is today, but is here to stay:

  • If consumers show little interest in display advertising, they care less about paying for content.

  • Technologies like Teracent improve display results for advertisers, help publishers better monetize their sites, and deliver more relevant, targeted ads to consumers. It’s win-win-win. I’m not saying the advertising is so good, it’s akin to content consumers love, but I do think it has the chance to become a service rather than a hindrance.

  • Google is making a run at display. Though their efforts with print and radio failed for a number of reasons, display is primed for the data driven approach that made search so efficient and attractive. Increasingly, display is more like search in that it is about the data that can be used to slice and dice the audience, for better targeting at lower costs. And now, with Teracent, the ability to match creative to the audience on the fly.

    • What’s next?

    Likely other display ad start ups will look at their own ‘exit’ strategies. There will be more consolidation and acquisitions and a few will fall by the wayside.

    Google will likely continue to expand it’s content network, refine it’s real-time bidding exchange. Perhaps it will pick out a few aquisitions. For example, DataXu lets advertisers place bids on impressions as they show up on ad exchanges and ad serving platforms on Google and Yahoo and AdMeld. Since DataXu can access which exchange is more effective, wouldn’t it be interesting for Google to partner with DataXu?

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