Brian Fuller's blog on the media, marketing and content creation

Google, DoubleClick and the sound of rolling thunder

Posted on | April 14, 2007 | No Comments


Surely these things are inevitable, but nevertheless they take your breath away. Google scoops up Doubleclick for a cool $3 billion. (What would that translate to in Second Life Lindens??
That’s a really powerful combination of Google’s existing search-based ad business and Doubleclick’s own robust web display-ad business. Private-equity outfits Hellman & Friedman and JMI Equity had bought DoubleClick two years ago for about a third that price, so they had a nice pay day. Published reports have estimated that DoubleClick did $150 million in revenues last year. BusinessWeek, in its story, reported that paid search advertising will account for more than 40% of the $19.5 billion expected to go to online advertising this year.
How does this story end? With a lot of competition. Some people are ticked off that Google spend as much as it did to try to strengthen its stranglehold on Internet advertising. We don’t like it in our world because Google ads, for the advertiser, can cost a fraction of what we charge. Now it gets even dicier for media companies. Being at the mercy of Google in building a business online is not a good place to be.
But all is not lost (he said summoning as much optimism as he could). Google’s rise to king of evil came faster than Microsoft’s. Yahoo is not lying down. Indeed the company’s strategy is sound enough to lure companies like McClatchy into its online advertising fold.
Business-to-business companies won’t take it lying down either. There are a number of small ad-brokering sites (although they don’t like to call themselves that) who are specializing in blogging (Federated Media) or technology publishing (NetShelter). They won’t roll over. Microsoft won’t roll over and Yahoo won’t roll over.
So let the games begin.

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Comments

No Responses to “Google, DoubleClick and the sound of rolling thunder”

  1. Juha
    April 15th, 2007 @ 1:13 am

    Here’s hoping we won’t have to roll over… not looking too hopeful at the moment though.

    One big issue that I have with Google is that despite it’s global reach it’s extremely US-centric. That’s fine for the US, but for “ROTW”, not so great.

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