Acquisition of DoubleClick by Google for $3.1 Billion

One of the most recent developments in Internet advertising is the acquisition of DoubleClick by Google for $3.1 Billion. This strategic move will further increase Google’s status over the internet and make it one of the biggest online advertising powerhouses. What Google will really get out of the deal is that they will inherit a large part of the Internet advertising business. Before the acquisition, DoubleClick had created its own network of web publishers and advertisers and used its technology to manage ad campaigns over the Internet. Now with this strategic deal, Google will be able to take advantage of DoubleClick’s market reach and its technology for rich media advertising, which has been a non-Google domain so far.

Till date most of the revenue earned by Google is based on their extremely popular pay per click advertising but it still has to catch up on Yahoo where banner and graphical video ads are concerned. In a statement to the press, Sergey Brin, Google's co-founder & president, technology said that their vision is always to make Internet advertising better by being more effective, less intrusive and more useful. His belief is that with DoubleClick, they can now make internet effective and efficient for advertisers as well as users.

There were a lot of rumors earlier where Microsoft had supposedly made a $2 billion offer to buy DoubleClick and since the acquisition it seems like a big loss for Microsoft as well as Yahoo, who has been ahead of Google on rich media advertising. DoubleClick started way back in 1996 and serves mostly advertising agencies, website publishers and corporate marketers. There are two main divisions in the company, the first one being the Dart division that provides the necessary tools for buying and selling ads and the Performics division that focuses on pay per click ads.