By on April 13, 2007

Google Acquires DoubleClick for $3.1 Billion

11



After much speculation, Google has indeed acquired advertising network DoubleClick for $3.1 billion.

DoubleClick, founded in 1996, offers a digital marketplace that connects advertising agencies, marketers and Web site publishers seeking to place online ads. It has more than 1,500 corporate clients.

As the NYT points out, the acquisition gives Google firm footing in display advertising and a ready made list of client relationships.

“Google really wants to get into the display advertising business in a big way, and they don’t have the relationships they need to make it happen,” said Dave Morgan, the chairman of Tacoda, an online advertising network. “But DoubleClick does. It gives them immediate access to those relationships.”

It’s Google’s largest acquisition to date and is a big win over rival Microsoft, which had been in the hunt early, but dropped out when the valuation climbed above $2 billion.

It will be interesting to see how Google goes about integrating AdWords with DoubleClick, especially as DoubleClick’s new ad exchange is open to Google’s competitors.

DoubleClick’s exchange is different from the ad auctions that Google uses on its networks because the exchange is open to any Web publisher or ad network — not just the sites in Google’s network. Offline ad sales have been handled through negotiation, but the efficiency of online auction systems has caused some advertising executives to consider using auctions for offline ads in places like television and newspapers. DoubleClick’s new exchange could function as a hub for online and offline ad sales.


Similar Stories in: Display, M&A | Forward: Email This Post

Similar posts you may like...

11 comments on “Google Acquires DoubleClick for $3.1 Billion”

  1. Jason Schramm Says:

    April 13th, 2007 at 8:12 pm

    I wonder if all these acquisitions hurt Google. The more they take over the more people become angry with them and go elsewhere. Who’s to say that they keep all of DoubleClick’s customers? And their business is in direct competition with Google’s targeted ads.

  2. Brian Chappell Says:

    April 13th, 2007 at 11:58 pm

    For the first time I am starting to question whether Google is starting to go too far with their acquisitions. 3.1 billion in cash. Wow. What else can I say.

  3. Google Badly Needs DoubleClick… » SELaplana Says:

    April 14th, 2007 at 2:14 am

    [...] Now that Google has the DoubleClick technology and partners, we’re made to wonder how Google and DoubleClick technologies go together without harming their own partners, just like what Andy Beal wondered: It will be interesting to see how Google goes about integrating AdWords with DoubleClick, especially as DoubleClick’s new ad exchange is open to Google’s competitors. [...]

  4. Andy Beal Says:

    April 14th, 2007 at 9:54 am

    Jason – I agree with you. It will be interesting what approach they take to integration, and how they avoid any conflicts.

  5. Dave Sokol Says:

    April 14th, 2007 at 9:24 pm

    Are there more of these acquisitions in the offing, seems to me there are more suitors (Microsoft, Yahoo, Diller’s company Interactive) than viable partners (ValueClick ????)

  6. Life in the Google Biosphere: The dreaded paid link at SMOblog Says:

    April 16th, 2007 at 3:37 am

    [...] As its market share in search increases, Google is obtaining a more and more significant role in the biosphere. Their role has become so significant, it is almost as if they own it. More and more, they actually do. [...]

  7. Nomadishere : Seeker of Truth » Blog Archive » 5 Insights Into The Google DoubleClick Deal to Take Over Affiliate Marketing And Banner Ads Says:

    April 16th, 2007 at 1:18 pm

    [...] They could be just after some buzz to increase their already obese stock price. But I hope not seeing as their stock fell over a buck after the deal. [...]

  8. BEN GEÇERKEN… [A Blog by Ä°brahim DEMÄ°R ] SEN DE MÄ° GOOGLE ? « Says:

    May 4th, 2007 at 4:48 am

    [...] Ä°ÅŸte Google ‘ın bu kadar çok güçlenmesi ileride zihniyet deÄŸiÅŸtirmesine neden olur mu diye düşünmeden edemiyorum. AdSense programı ile internet üzerinden ciddi bir gelir elde eden ve internet reklamcılığı pazarına hakim olan Google , geçen ay DoubleClick ‘i 3.1 Milyar dolar gibi ederinin çok çok üstünde bir paraya aldı. (Åžirket cirosu 400 Milyon dolardan daha az). Konuyla ilgili bir yazıyı buradan okuyabilirsiniz. Bu durum bizler için pek ÅŸaşırtıcı deÄŸil çünkü daha önce de böyle sansasyonel rakamlarla ÅŸirketleri bünyesine kattığını hepimiz hatırlıyoruz. (YouTube ‘un alınması) [...]

  9. Nomadishere : Seeker of Truth » Blog Archive » links for 2007-05-17 Says:

    May 17th, 2007 at 7:27 pm

    [...] Google Acquires DoubleClick for $3.1 Billion | Marketing Pilgrim After much speculation, Google has indeed acquired advertising network DoubleClick for $3.1 billion. (tags: double.click google accuisitions advertising marketing digital.advertising) [...]

  10. O Plano “10, 20, 30, 40″ da Microsoft « Sites de Busca, Web & Inovação « MigLog Says:

    November 16th, 2007 at 10:54 pm

    [...] adquirindo a aQuantive este ano, um dos principais players da publicidade online. Por outro lado, o Google adquiriu a DoubleClick não satisfeito apenas com o seu AdWords, o Yahoo! comprou a Right Media e o WPP Group absorveu a [...]

  11. A Nova Cruzada dos Buscadores « Sites de Busca, Web & Inovação « MigLog Says:

    December 13th, 2007 at 8:23 pm

    [...] do portal focado em finanças, decidiu migrar da plataforma DoubleClick (ainda em trâmites para a fusão com o Google) para o adCenter, produto da Microsoft equivalente ao [...]