Yahoo vs Google -Google buys DoubleClick
On 11 April , I had written about the Viacom-Yahoo deal and how it could potentially impact the online advertisement market . In the post I had analysed (to a certain extent) the implications of the Viacom-Yahoo deal and how the twosome were poised to take on the Google ecosystem . While writing the post , I was not aware that the online advert scenario would change so fast with Google announcing the purchase of Double Click for a sum of USD 3.1 bn yesterday -14th April . DoubleClick is primarily engaged in the delivery of Internet advertising with the provision of mobile marketing activities.This acquisition is in line with Google's strategy to expand its foothold in online advertising ,and transforming Google from a search engine to an advertising powerhouse . This deal is an interesting twist in the battle between Yahoo and Google for supremacy in the online advertisement market . The Google buy out of Double Click would mean that users like you and me would get more advertising tailored to their online habits, especially if DoubleClick and Google combine some of their huge databases of information on Internet use to direct specific ads to different Web surfers’ tastes.
Google, traditionally , has made most of its money in the online basics: the text-based search engine and small text ads , DoubleClick’s core strength, by contrast, lies in flashy banner ads and, more recently, video ads that are more like high-end magazine or television ads. This synergy is expected to up the quality of advertising content that Google was known for and hopefully enhance revenues .
As expected the sale of DoubleClick involved a complex and long negotiation that included at one point Yahoo, AOL and, most prominently, Microsoft, which has been trying to position itself as an advertising rival to Google.
The New York Times reports "....The acquisition will also strengthen Google’s position with respect to Yahoo, its chief rival in Internet search and advertising and a leader in the sale of display ads...".
How is Yahoo going to respond to the new challenge.........whats Yahoo's next move...keep watching this space for updates .....
Google, traditionally , has made most of its money in the online basics: the text-based search engine and small text ads , DoubleClick’s core strength, by contrast, lies in flashy banner ads and, more recently, video ads that are more like high-end magazine or television ads. This synergy is expected to up the quality of advertising content that Google was known for and hopefully enhance revenues .
As expected the sale of DoubleClick involved a complex and long negotiation that included at one point Yahoo, AOL and, most prominently, Microsoft, which has been trying to position itself as an advertising rival to Google.
The New York Times reports "....The acquisition will also strengthen Google’s position with respect to Yahoo, its chief rival in Internet search and advertising and a leader in the sale of display ads...".
How is Yahoo going to respond to the new challenge.........whats Yahoo's next move...keep watching this space for updates .....
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