Google rivals call for regulators

In Search Engine Newsby Marius Badenhorst

There has been a lot of talk among the online community with the recent announcement of Google with the planned purchase of DoubleClick for $3.1 Bil. The most ironic part is that Microsoft has called for AntiTrust Regulators to be involved.

DoubleClick is a New York based company which serves as the middleman between advertisers, advertising agencies and online publishers, to which they have long standing relationships with web Ad buyers. They also develop software which allows advertisers to track the effectiveness on their online campaigns.

The reason the questions have been raised, not solely on the amount offered (after Microsoft was initially thought to have the deal valued at $2Billion, which would have pushed them up within the Online Advertising Market); but with the fact that after this deal, Google will have almost 80% of the Online Advertising Market. “Google becoming a dominant player in serving graphical ads on websites” according to Time Warner. Which basically means they will “Substantially reduce competition in the advertising market on the web” quoted from Microsoft General Council.

The purchase price is something to think about as well, seeing as the company profit is only in the 100 million range. Then another spanner in the works, DoubleClick also owns the SEO company “Performics”, a leading UK Search Engine Marketing Company. Google, a search engine, owning an SEO company!

The purchase of DoubleClick would help Google, which already dominates the market for online ads which are displayed next to search results (radio ads, newspaper ads, even Google TV Ads), to boost their own efforts to seal even more graphically-displayed ads.

Official Google/DoubleClick Press Release

About the Author

Marius Badenhorst