Google purchases display ad specialist Teracent for an undisclosed sum, showing the search engine is going after market share enjoyed by Yahoo and Microsoft. Teracent uses machine learning technology to pick and choose from thousands of creative elements in display ads, including images, products, messages and colors. Teracent might seem like a small purchase in the wake of Google's $750 million bid for mobile display ad provider AdMob, but the deal underscores Google's commitment to boosting its display ad market share.
is aggressively going after Yahoo and Microsoft in the market for
online display advertising.
Two weeks after agreeing to buy mobile display ad specialist AdMob,
23 said it has purchased display ad specialist Teracent
For its core Intelligent Display Advertising, Teracent uses machine learning
technology to pick and choose from thousands of creative elements in display
ads, including images, products, messages and colors.
These elements can be augmented using information such as geographic
location, language, Website content, time of day or the past performance of
"Teracent deploys an unlimited number of ad creative combinations
(using your catalogs, databases, images and messages) through a single ad unit.
Then, sophisticated machine learning algorithms instantly select the optimal
creative elements for each ad impression-
based upon a
real-time analysis of which items will convert from impressions into
sales," Teracent explains
on its Website.
"This technology can help advertisers get better results from their
display ad campaigns," wrote Google's Neal Mohan, vice president of
product management, and Joerg Heilig, engineering director, in a Google blog post about Teracent.
"In turn, this enables publishers to make
more money from their ad space and delivers Web users better ads and more
ad-funded Web content."
Google said it expects to close the deal this quarter and to make Teracent
technology available to DoubleClick clients and clients who run display ad
campaigns on the Google Content Network.
While Teracent might seem like a small purchase for Google in the wake of
the search engine's $750 million bid for AdMob, the deal underscores Google's
commitment to boosting its display ad market share, which lags behind display
ad market leader Yahoo and Microsoft.
Google has led the market in paid keyword advertising for nearly a decade
but it has yet to make much of an impact in the valuable display ad realm,
where Yahoo has made billions of dollars serving graphical ads that attract
attention touting products, people and services on Websites.
Yahoo commands 14.5 percent of the display ad market,
Google ranked sixth at just 2.2 percent.
Google moved to fortify its display ad arsenal by acquiring DoubleClick for
$3.1 billion in 2007, and later AdMob, which customizes display ads for small
screens on smartphones, which have full Internet browsers that make them a rich
new playground for mobile ads.
Interestingly, Teracent also serves targeted mobile ads
(for Yahoo, among
others), so there may be some overlap with AdMob. Teracent also helps
advertisers optimize video ads and its technology could conceivably aid
Google's YouTube video-sharing Web site.
Read what others are writing about this deal on Techmeme here.