Google Revamps DoubleClick in Major Ad Push
By Kenneth Corbin (internetnews.com)
Search giant launches ad exchange to simplify connecting ad buyers with Web publishers.
Search leader Google is making its biggest push to date into display advertising, launching on Thursday a hub to connect publishers and advertisers through its DoubleClick division.
The new DoubleClick Ad Exchange promises to streamline the process of connecting buyers and sellers of online display ads, vaulting Google (NASDAQ: GOOG) into more direct competition with online media hubs such as Yahoo (NASDAQ: YHOO) and AOL.
The thrust behind Google’s pitch is that display advertising should be simpler. The DoubleClick ad exchange is designed as a real-time marketplace where prices and placements for display ads are determined through an auction, similar to the way that Google sells search ads through its AdWords bidding system.
“It’s just like a stock exchange,” Google said in a note (available here in PDF format) explaining the new service.
The ad exchange is the most significant product to emerge from Google’s $3.1 billion acquisition of DoubleClick in 2007, a move that signaled the search leader’s intent to build out its graphical ad business.
But for some analysts, that process has been slow in coming.
“Although we do not think Google has made much of a mark in the display market even with DoubleClick — and this has been somewhat surprising to us — we think this new ad exchange indicates Google remains serious about and focused on this area,” Standard & Poor’s analyst Scott Kessler wrote in a research note.
Google is billing the service as a method to help publishers better monetize their online content, a theme that has permeated other recent announcements from the Web giant, such as its move to share revenue with news magazines through its new FastFlip product.
When it comes to display advertising, Web publishers are in a bit of a bind, Google said, claiming that as much as 80 percent of their online inventory goes unsold.
“It’s like airlines flying with their planes mostly empty,” Google Vice President Neal Mohan said in a blog post. “And for the ad space that they do sell, publishers also have to deal with the complexity of managing thousands of advertisers and campaigns.”
The new DoubleClick ad exchange aims to simplify that process with the automated auction model that has made Google’s AdWords search platform such a grand success.
Under the new system, publishers are promised more control over who is advertising on their platform, as well as more granular reporting about the effectiveness of their sites’ performance.
For advertisers, the exchange seeks to broaden the menu of sites available for them to place their messages, automating the connection with hundreds of thousands of publishers on Google’s AdSense network.
Accompanying the launch is an API for ad networks and agency networks to sync up their own operation to the ad exchange.
TAGS: DoubleClick, Google, advertising, display
By Kenneth Corbin (internetnews.com)
Search giant launches ad exchange to simplify connecting ad buyers with Web publishers.
Search leader Google is making its biggest push to date into display advertising, launching on Thursday a hub to connect publishers and advertisers through its DoubleClick division.
The new DoubleClick Ad Exchange promises to streamline the process of connecting buyers and sellers of online display ads, vaulting Google (NASDAQ: GOOG) into more direct competition with online media hubs such as Yahoo (NASDAQ: YHOO) and AOL.
The thrust behind Google’s pitch is that display advertising should be simpler. The DoubleClick ad exchange is designed as a real-time marketplace where prices and placements for display ads are determined through an auction, similar to the way that Google sells search ads through its AdWords bidding system.
“It’s just like a stock exchange,” Google said in a note (available here in PDF format) explaining the new service.
The ad exchange is the most significant product to emerge from Google’s $3.1 billion acquisition of DoubleClick in 2007, a move that signaled the search leader’s intent to build out its graphical ad business.
But for some analysts, that process has been slow in coming.
“Although we do not think Google has made much of a mark in the display market even with DoubleClick — and this has been somewhat surprising to us — we think this new ad exchange indicates Google remains serious about and focused on this area,” Standard & Poor’s analyst Scott Kessler wrote in a research note.
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