Google The Ad Agency; Google The Affiliate Network
So you may have already heard that Google has won the bidding over Microsoft for DoubleClick.
Recent rumors had Microsoft aiming to buy DoubleClick for about $2 billion, so the announcement signals that a bidding war had erupted with Google, said industry analyst Greg Sterling of Sterling Market Intelligence.
The deal is a clear loss for Microsoft; it stands to affect Yahoo as well, because with DoubleClick, Google gets a much-needed boost in display advertising, Sterling said. (ComputerWorld, April 13)
Most of the analysts like Sterling have discussed the boost in banner and graphical advertising this will bring for Google.
But a very scary issue is that they also are taking over the affiliate network Performics. God only knows what Google will do with them. Performics sent out this letter to their publisher network:
Dear Valued Publisher:
I am pleased to announce that DoubleClick has signed a definitive agreement to be acquired by Google. The transaction is expected to close later in 2007. To review the press release, please visit: www.doubleclick.net.
We are thrilled to have the opportunity to partner with another industry leader and to provide significant added value to our customers. Joining forces with Google will accelerate our ability to bring innovations to market while maintaining our commitment to providing you with the high level of service to which you are accustomed.
You will retain the advantages you now receive from DoubleClick – including world-class service, leading solutions, deep expertise in and understanding of your business – which, upon closing, will be enhanced by Google’s renowned research and development expertise and leadership in innovation. We look forward to leveraging this partnership to bring you even more effective ways to monetize your inventory.
I’m sure you will have many questions as to how this transaction may affect your current working relationship with DoubleClick and your current contracts. Let me assure you that a change in DoubleClick’s ownership will not change the terms of your client contract. Most importantly, a change in ownership will not affect your ownership of your data. Your data remains your property and subject to the terms of your contract.
Between now and closing, nothing will change. As we work with the Google team to plan for the combination of our organizations, our top priorities will be to keep you as well informed as possible of the progress of the merger and to continue to provide you with the highest level of service.
We look forward to our continued collaboration and success. If you have any further questions, please contact your account representative.
Obviously I am, like many others, still very skeptical of the “change in ownership will not affect your ownership of your data” comment. What will it take for Google to be considered a monopoly? We’ll just have to wait and see what conflicts of interest arise as the “search engine” continues to take on new business sectors. InfoWorld has a good entry with more on the Monopoly issue; Also ZDNet has a quick blip.
Related Entries:
I really think that Google is becoming quite an advertising Goliath with its recent acquisitions and foray into radio advertising.