Google + Double Clik - Gaining access to the professional advertizers

Implications: 1.  Google is gaining access to Media and related advertising mind share
2.  Good example of the merging of content creators (DoubleClick) and content delivery (Google).

Analysis: This is a very interesting purchase of a banner ad company with a company that provides ads online within search.  While on the surface it might seem that Google might have paid a very high price, I see a potential upside in being able to better position banner ads relative to what a customer is viewing.

IT professionals have known for years that the integration of two applications can be difficult to do and maintain, but it is also where the true value of an IT organization can be found.  This may also be true in this acquisition.  Imagine the power of Google knowing where you started your search and leveraging that knowledge as you look at various sites.  This may lead to a smarter and more efficient use of banner ads.  It also ads to the total market opportunity for Google by almost 50% ($14.8B by 2010 based on the data in the article).

The challenge for Google is the challenge that has always faced Google.  They have tons of cool technology, but they make money from ads and search.  Will this purchase be the one that sees Google expand beyond its core business.   Imagine a Microsoft that was only an operating system company.  It would be much smaller and less of a player than the Microsoft of today. 

The challenge for Google is to create a business that has multiple revenue streams yet not allow it to lose focus on any single business.  With this purchase, Google seems to be expanding its footprint in advertising.