Some Thoughts about the Googleclick Deal

One weekend you relax, and come late to the news, and Google has bought Doubleclick for $3.1 billion in cash. Cash. Not stock, cash. Boy oh boy. But it is worth it and I can explain to you why. Some time ago I was sitting in a meeting where we were looking at different banner server companies for use at a big german special interest portal. I was there just to listen in as this might be interesting for another part of the company I was responsible for. We looked at several different ones and at the end Doubleclick won, not because it was better, but because it was the standard, especially in agencies. So there you go. That’s why it is worth $3.1 billion.
This also becomes clear in the FAQ that Google put up. They have lots of questions they answer in great detail (especially privacy stuff ;)) and then there is one question they can answer very clearly:
Q. Will advertisers and agencies be able to serve ads to Google network sites through DoubleClick?
A. Yes
Ahhhh… there you go. That’s the reason they bought Doubleclick. Agencies get X Million USD to manage and distribute and they want to track everything via one tool. Above that, Paul Kedrosky thinks that $1 Billion is really just to be a pain for Microsoft. Above that, this really puts Yahoo! back on the map for lots of people he thinks.
The competition has already cried out and wants regulators to take a close look at the deal as seen here and here. I have to admit that the power that is building up there is immense. DoubleClick is amazingly powerful in the agency market and Google has an amazing Network of Sites. The problem is that they will not get the Top of the Fold spots and especially they will not get them as a first solution. They will get the placements that are left over, and their ads will only be shown if there is nothing else the publisher wants to show.
Of course stuff will change a lot on those fronts, but it will take time. With this deal Google has the power to push along integrated changes if the publisher and/or agencies don’t stop using Doubleclick or AdSense. We’ll see how it plays out.
Next up, Google acquires the Internet.

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One thought on “Some Thoughts about the Googleclick Deal

  1. With DoubleClick, Google Plugs June 22, 2007 at 12:12 Reply

    [...] That, CNET News.com, A VC, Microsoft, Jeremy’s Blog, Scobleizer, Search Engine Roundtable, Oliver Thylmann’s Thoughts, Microsoft News Tracker, WebProNews, Silicon Valley Watcher, GigaOm, Inc. Magazine and Andy [...]

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