Google is reportedly set to buy AdMeld, which sells display advertising for large Websites that Google currently doesn't have access to in its DoubleClick Ad Exchange program.
(NASDAQ:GOOG) is in the process of purchasing AdMeld
which sells display advertising for large Websites owned by Thomson Reuters and
Discovery Communications, and News Corp.'s Fox News and New York Post
declined to confirm the buy, which TechCrunch
first reported and claimed was worth $400 million.
more or less locked up the market for search ads, where it has 90 percent-plus
of text-based ads paired with search results. However, the company's plot of
display ads-graphical ads with glimmer and sparkle that sometimes irk users-is
Google's U.S. display ad revenue share grew to 14.7 percent in the first
quarter of 2011 from 13.3 percent from the fourth quarter of 2010, passing
Yahoo for the first time.
Google's vice president of display advertising, said
engagement rates across all display ads will increase by 50 percent as
"ads become less cluttered, more relevant, more engaging and more
would help Google grab ad inventory from leading online content publishers for
its DoubleClick Ad Exchange marketplace, providing quite a weapon for Google in
its battle against Yahoo, Microsoft, Facebook and other rivals.
a deal would surely attract the attention of the Federal Trade Commission and the
Justice Department, which have scrutinized Google recently for its large
The FTC in
particular has focused on Google's online ad mergers. The agency investigated
Google's $3.1 billion
bid for DoubleClick before blessing it in 2007. The FTC also delayed Google's
$750 million purchase of mobile ad player AdMob before giving it the green
in May 2010.
million, AdMob is considerably smaller than those acquisitions. However, given
Google's dominant position in online ads, a regulatory investigation to ensure
the deal is in keeping with fair competition laws is virtually guaranteed.
If the AdMeld
deal goes through, it would mark the continuation of an acquisition spree that
cranked up in 2010, when Google spent nearly $2 billion to buy more than 40