In an attempt to further expand its advertising network, Google has purchased online-advertising agency DoubleClick, Inc., for $3.1 billion. Google sealed the deal with San Francisco-based private equity firm Hellman & Friedman as well as JMI Equity and DoubleClick management. The deal is being viewed as a win-win situation for both parties. A prominent international leader in digital-marketing technology and services, DoubleClick, Inc., will benefit from Google's advertising platform and publisher monetization services. Google will leverage on DoubleClick's expertise with regard to ad-management technology for media buyers and sellers. Both players will combine their strengths to "offer superior tools for targeting, serving, and analyzing online ads of all types, significantly benefiting customers and consumers," says a press release. Another major contender for ownership of DoubleClick was Washington-based Microsoft Corporation. "DoubleClick's technology is widely adopted by leading advertisers, publishers, and agencies, and the combination of the two companies will accelerate the adoption of Google's innovative advances in display advertising," said Eric Schmidt, Google's CEO. Sergey Brin, Google's co-founder and president for technology, said, "Together with DoubleClick, Google will make the Internet more efficient for end users, advertisers, and publishers." However, investors aren't too happy about the move. According to analyst Rob Enderle of the Enderle Group, "Google is throwing a lot of money at things, and it is not clear that they are spending wisely."
Blamer joins Creston as new U.S. CEO
Steve Blamer is Creston's new CEO for the United States. He joins the UK-based marketing-services holding company from Foote, Cone & Belding, where he was CEO. Creston has thus far focused only on UK-based agencies. Blamer has been entrusted with pursuing acquisitions and establishing the company's operations in the U.S. He will identify appropriate marketing-services companies, including those offering advertising, public relations, digital and direct marketing, customer-relationship marketing, and research services. Blamer is also armed with a cache of $100 million earmarked by Creston for acquisitions in the U.S. Creston was established by Don Elgie in 2001 and fully acquires agencies in cash-and-stock deals. Blamer is confident that "Creston can duplicate its European success in the U.S. market." Emphasizing the importance of U.S. market potential, Blamer said that global marketing-services companies cannot ignore the country. The company hopes to make its initial purchases in the U.S. in the "next 12 months." Blamer also stated that Creston will provide its marketing-services entrepreneurs with the infrastructure and resources to "maximize their potential while still being entrepreneurial."
By the end of 2007, mobile-ad spending will reach $3 billion
In its survey of global mobile marketing and advertising, market research company ABI Research revealed that by the end of 2007, the market will be worth about $3 billion; furthermore, that figure is predicted to increase to $19 billion by 2011. A huge portion of the amount will be generated from advertising via mobile-search and video marketing, according to the U.S.-based firm's market survey. ABI conducts annual research on mobile content and digital media with the aim of assessing the impact of mobile ad-supported content. It also ascertains which mobile-campaign services are most effective and makes predictions regarding global and regional spending on mobile marketing. ABI's report pinpointed some impediments that could retard growth. It suggested that to achieve optimum utilization, the market should use "multiple technologies and business models to bring their messages to mobile consumers." The research also predicts that the broadcast mobile-video sector will be the biggest spender, spending $9 billion on video-based advertising by 2011. According to Judith Rosall of ABI Research, mobile devices, unlike personal computers, provide users with highly customized communications channels. Mobile-communications carriers seldom reveal this data to "third parties because they want to protect and control their customers," she added.
Google claims Utah trademark law will hurt consumers
The use of keywords to generate competitive ads will soon be limited. Companies currently prepare ads triggered by certain keywords and use these keywords to display their ads next to search results for or stories about competitors' products and services. Utah legislators are seeking to limit this type of keyword use. Google, Inc., opposes the move and has called it "inconsistent with established U.S. trademark law and the capitalist system." In an email, the company alleged that the law will hurt consumers and violate free speech. According to Google, it will reduce competition, which in turn will increase prices, thereby hurting consumers. Google also said, "Federal courts have consistently upheld the right to use trademarked terms in comparative ads." Utah's Trademark Protection Act will be effective June 30 and will allow companies to register their electronic trademarks. This will prevent companies from using competitors' trademarks to trigger their own advertising on search engines and other websites that allow keyword-prompted advertising. Google believes the new law will be challenged in court and deemed unconstitutional and has stated that it will continue its endeavors to educate Utah officials on the potential consequences of the legislation. In the meantime, it has found an ally in a Utah state legislature attorney. A note from the Legislative Research and General Counsel Office stated that since it affects interstate commerce, the law might be struck down. Meanwhile, Utah Republican State Senator Dan Eastman, who sponsored the law, defended it in a blog posting entitled "Identity Theft: The Next Generation." He said that this law will help curb identity theft and protect those who have spent millions on their trademarks. He also said that the law "fashioned an effective, private-sector answer to the problem."
Traffic.com and AP sign agreement
Traffic.com and the Associated Press (AP) have signed a multi-year advertising representation agreement. This agreement, which links a top ad-inventory specialist to a broadcaster with networks across the U.S., has caused a stir. "AP is excited to be working with Traffic.com," said Jim Williams, Senior Vice President of Global Broadcast for the Associated Press. Traffic.com will use the AP's multimedia news service to enhance its advertising. The agreement will help Traffic.com create exclusive multi-platform packages that meet specific advertiser needs. In turn, the AP will benefit from using Traffic.com's inventory to fulfill its radio and television customers' needs. Traffic.com radio advertisers will now reach 750 radio stations across the U.S. in 103 designated market areas (DMAs) including 94% of the population and 93% of the U.S. television-viewer population. A leading provider of personalized traffic information, Traffic.com uses the industry's most advanced data-collection infrastructure. It creates powerful branding opportunities for advertisers, allowing them to widen their networks and target consumers with useful and relevant matter.
