DoubleClick Brings 5 Key Benefits to Google

DoubleClick's technology, customer base, and growth strategy fit well with Google. Google dominates text link advertising today and has ambitious expansion plans. DoubleClick can help Google gain market share in 5 other key areas:

1 – Delivering display advertising.

2 – Monetizing display advertising.

3 – Video advertising.

4 -- Behavioral Targeting.

5 -- DoubleClick Advertising Exchange.

1 – Delivering display advertising. DoubleClick has a large customer base of publishers, advertisers and advertising agencies in the display advertising market.

2 – Monetizing display advertising. DoubleClick can determine which of its customers have large numbers of unsold, or undersold, display ads. For these customers, DoubleClick can offer additional revenue through Google’s powerful advertising sales model, generating additional ad inventory for Google, and additional revenue for both Google and DoubleClick’s publishing customers.

3 – Video advertising. DoubleClick’s rich media and video ad serving product, Motif, can accelerate Google’s market share gains in video advertising, building on Google’s ownership of YouTube.

4 -- Behavioral Targeting. Consumer behavior crosses many Internet sites, and each Internet company sees only part of the complete consumer picture. Together, DoubleClick and Google have large advertising and search reach and frequency. This can lead to large volumes of highly targeted ads based on consumer behavior, termed “behavioral targeting”.

For instance, if John types “Toyota Camry” at Google, reads about Toyotas, then goes to AOL to read the latest news, which ad will AOL deliver to John on its news page? Today, AOL may deliver a random ad, now knowing that John is in the market to buy a new car and is a very highly valued car shopper for the next few days or weeks. With DoubleClick’s and Google’s technology working together, AOL would know about John’s behavior, and AOL would be able to deliver a high value car ad to John on AOL news.

5-- DoubleClick Advertising Exchange. The purchase and sale of advertising today resembles the purchase and sale of stocks decades ago, with human buyers and human sellers communicating and negotiating with each other in a laborsaving, suboptimal process for both sides. Over time, the advertising market will migrate to a NASDAQ-type market, with computers buying and selling from computers, based on parameters determined in advance by the buyers and sellers.

Right Media, founded by a DoubleClick alumnus, and 20% owned by Yahoo!, runs this type of advertising exchange today. DoubleClick has developed comparable technology, called the DoubleClick Advertising Exchange. Google’s market position will help accelerate the launch and success of this product.