Revenue from AdSense continues Google’s momentum as the company looks forward to acquiring DoubleClick..
Google on Thursday reported US$3.66 billion revenue for the quarter that ended 31 March, 2007, up 63 percent year over year, and 14 percent from its previous quarter. Traffic acquisition costs during this quarter came to US$1.13 billion, or 31 percent of advertising revenues.
In its largest acquisition yet, Google has agreed to pay $3.1 billion in cash for online ad company DoubleClick, the companies announced.
The deal gives Google a large network of advertisers and Web publishers to serve and sell ads to, and it boosts the search giant’s banner advertising business, which lagged rival Yahoo’s.
The acquisition, which is expected to close sometime later this year, also will give media agencies and advertisers the ability to manage integrated search and display ad campaigns through one centralized console, Schmidt said. “The whole system will run faster,” he said. “Users will benefit from more targeted ads.”
DOUBLECLICK, which delivers marketing messages to Web sites and monitors how many clicks they get, plans to announce today that it is setting up a Nasdaq-like exchange for the buying and selling of digital advertisements.
The service may make DoubleClick a more attractive acquisition target, according to advertising industry executives.
DoubleClick, which opened in 1996 as a pioneer in the placement of banner ads online, has evolved into a company that serves — separately — both buyers and sellers of digital advertisements.
The bursting of the dot-com bubble in the fall of 2001 marked a turning point for the web. Many people concluded that the web was overhyped, when in fact bubbles and consequent shakeouts appear to be a common feature of all technological revolutions. Shakeouts typically mark the point at which an ascendant technology is ready to take its place at center stage. The pretenders are given the bum’s rush, the real success stories show their strength, and there begins to be an understanding of what separates one from the other.
The bursting of the dot-com bubble in the fall of 2001 marked a turning point for the web. Many people concluded that the web was overhyped, when in fact bubbles and consequent shakeouts appear to be a common feature of all technological revolutions. Shakeouts typically mark the point at which an ascendant technology is ready to take its place at center stage. The pretenders are given the bum’s rush, the real success stories show their strength, and there begins to be an understanding of what separates one from the other.
