Google Banking on Content Consumption, has Eye on Display Advertising

The Searchcore blog series doesn’t normally cover current events items, but when we come across a news piece that addresses deep rumblings in the Web, we make an exception in the interests of our readers, and such a news piece has produced itself.

This week, Google has plenty of reason to celebrate after the United States Department of Justice cleared the $400 million acquisition of Admeld, a New York-based display advertising company that helps publishers maximize the strength of their advertising space.

So, what exactly does this company do? I’ll let Admeld explain it themselves in this admittedly adorable video they put together detailing some of their methods and processes.

How Will Admeld Change Google’s Existing Services?

If you use an existing Google service to manage your online ad campaigns, don’t expect any big changes in your advertisement management… yet. Google intends to add Admeld to its “stack” of ad technology properties and acquisitions that it uses to enhance their display advertising network and the DoubleClick ad exchange. Admeld, however, will also work with other advertising exchanges operated by competitors Microsoft and Yahoo.

In an AdAge interview with Google’s Vice President of Display Advertising, Neal Mohan, Mohan described the acquisition as a move that would further assist digital media growth, enabling publishers to maximize their advertising opportunities and revenue.

In a blog post announcing the DOJ’s approval of the acquisition, Google summed up its goals in the Admeld acquisition:

• To give publishers more control over their advertisement space;
• To offer more customizable, flexible options to manage and sell that space;
• To provide publishers with superior analytics and metrics (“insights”) on their ad performance; and
• To simplify and integrate ad network management across multiple platforms and devices.

Although Admeld will operate separately from DoubleClick, the post promised that, “over time, there are opportunities to bring the best of both businesses together in a variety of ways and to develop entirely new solutions.”

This move represents yet another step Google has taken towards positioning itself at the helm of digital content consumption. Google already overpowers online advertising competitors, managing about 44.1% of global online ad space, up from 41.9% in 2009. Despite that, Google commands only 9.3% of online display spending, trailing Facebook (16%) and Yahoo (13%).

As more content becomes available online and as users consume more content, the bigger the opportunities for online advertisers become, and the spoils will go to those who take advantage of the most effective tools – tools which, through this acquisition and a slew of others, are now predominantly properties of Google.

What you can conclude from this move is that Google is investing in and banking on the increased consumption of digital content. The $400 million bill the search giant will be footing in exchange for the Admeld acquisition will be a drop in the bucket compared to the increased revenue to be had as the result of future growth of online content consumption, affirming the close relationship between search engine and content marketing.

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