Google buys ad service

2011-06-14 11:02
San Francisco - Google Inc has struck a deal to buy Admeld, a service that helps websites make more money from online advertising.

The agreement announced on Monday positions Google to add another potentially valuable weapon to its advertising arsenal.

Google already sells the most advertising on the internet. The company's total ad revenue is expected to surpass $30bn this year - greater than the entire newspaper industry.

For that reason, the proposed acquisition of Admeld may face more regulatory scrutiny than most deals of its size do.

Financial terms of the Admeld agreement weren't disclosed, an indication that Google isn't paying a high enough price for the proposed acquisition to be considered a major financial event.

Market share

Founded three years ago, privately held Admeld employs about 100 workers at its New York headquarters and other offices in San Francisco, London, Berlin and Toronto.

Admeld's service is focused on marketing campaigns that promote brands and typically feature imagery. The format is known as display advertising, an area where Google Inc has been gaining market share since its $3.2bn acquisition of DoubleClick Inc in 2008.

The US Federal Trade Commission spent a year examining the DoubleClick deal, still the largest acquisition in Google's 13-year history.

Google has been building its display advertising business to supplement its dominance of internet search and the text-based ads that run alongside search results as well as other web content.

The diversification has been working out so well that the research firm IDC said Google surpassed the internet's long-time display advertising leader, Yahoo Inc, during the first three months of this year.

IDC estimated Google held 14.7% of the US online display ad market in the first quarter, followed by Yahoo at 12.3% and Facebook at 8.8%.

"Together with Admeld, we hope to make display advertising simpler, more efficient and more valuable," Neal Mohan, Google's vice president of display advertising, wrote in a post on Google's blog.

Google's appetite

Admeld works with websites to help them figure out how to make the most money from the amount of space they have available to show display ads.

Its list of customers includes News Corp, IAC/InterActiveCorp, Thomson Reuters Corp and Pandora Media Inc, which is preparing to go public this week.

Google didn't specify a timetable for closing the Admeld acquisition. The company's executives have repeatedly said they expect regulators around the world to take more time poring over how Google's acquisitions might affect competition on the internet.

The intensified scrutiny hasn't curbed Google's appetite for acquisitions. Since the end of 2009, Google has spent more than $2.6bn buying more than 60 companies.
- SAPA
Read more on:    google  |  internet  |  e-commerce
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 

Africa: Land of Billionaires!

Find out who are the richest of the richest in Africa!

 
 

Men24.com

Best bro movies 2014
Every man should be able to do these three things
Goalkeeper saves five penalties with his FACE!
Hottie of the day: Jesselyn

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Hot festive offers at kalahari.com!

Hurry! Stocks are limited. Don’t miss out. Shop Now!

Save up to 60% on toys!

Don’t miss out on this hot offer, save up to 60% on toys. While stocks last. Shop now!

Festive gifts!

Check out our awesome range of festive gifts to make everyone’s wishes come true. Shop now!

Seen something you like in our catalogue?

Find the perfect gift and save up to R5000 – As seen on the catalogue. Hurry and shop now!

Save up to R2200 on electronics! – As seen in the catalogue

Wishing for tech gadgets this festive? Save up to R2100 on hot tech products at kalahari.com. While stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

You may feel divided. Conflict between mind and emotions can create tension or indecision. This could lead to stressful feelings...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.