What Google’s Purchase of DoubleClick Means to Publishers and Advertisers
The recent announcement that Google is paying $3.1 billion (with a “b”) for fledgling ad-serving company DoubleClick didn’t really come as a suprise considering plans to sell the company were really never a secret.
Talks of an anti-trust uproar from competitors like Yahoo! and Time Warner could delay completion of the deal, but will it really make a difference?
With reports that Google’s pay-per-click (PPC) advertisers are planning to cut back what they spent just a year ago, Google obviously is not abandoning PPC advertising, but is offering another sign that it believes other advertising models work. Add to the mix ongoing click-fraud allegations and PPC advertising may have reached its apex.
Google is about to get its hands on a company that deals a lot with CPM (cost-per-thousand) impression advertising and already is beta testing a CPA (cost-per-action) model. Of course there’s also cost-per-lead, cost-per-acquisition, cost-per-fill-in-the-blank and even some flat-rate models offered to advertisers by publishers of all shapes and sizes.
Frankly, publishers and advertisers are experiencing a dwindling reliance on services like DoubleClick’s DART or aQuantitive’s Atlas (which should be next on Google’s radar). Publishers have ad-serving technology readily available to them, and advertisers are having increasing difficulty justifying the costs.