Google's advertising deal ecosystem
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Market Overview
This series of acquisitions helps cover the entire value chain of advertising for Google. Ads start with the advertiser and go through an ad agency to a demand side platform (Invite Media), then to ad exchange (DoubleClick), then to supply side platform (Admeld), finally reaching users through services such as YouTube. The AdMob acquisition gives Google one of the largest mobile advertising networks. Google plans to integrate the AdMob network with DoubleClick's ad tools to ultimately operate a single platform across all devices. This is an excellent example of ecosystem synergy -- where target acquisitions have synergy with each other and not only with the acquirer.
June 2011 -- Google agrees to acquire AdMeld Inc. from the Foundry Group, Spark Capital, Norwest Venture Partners, and Time Warner Inc, for a consideration of $400 million. AdMeld provides supply side advertising network optimization technology for online publishers.
June 2010 -- Google plans to acquire Invite Media, a company that develops and operates a media buying platform that utilizes optimization technology for the display marketplace. The demand side platform is designed to facilitate navigation of high volume display advertising exchanges for buyers.
November 2009 -- Google plans to purchase mobile advertising start-up AdMob Inc. for $750 million in stock. AdMob sells ads that appear on Web sites geared for cellphones. The company was a first-mover in developing technology to deliver ads on Apple's iPhone as well as on devices that use Google's Android mobile operating system.
April 2007 -- Google plans to acquire DoubleClick Inc. from Hellman & Friedman, JMI Equity and management for $3.1 billion in cash. The deal will be subject to approval by US anti-trust regulators. DoubleClick is an exchange that provides services and products for advertising agencies, marketers, and Web publishers to support marketing programs.
Research assistance provided by Debadutta Bhattacharyya.
Copyright © 2008-2012 George T. Geis. All Rights Reserved.