Reprise Now

Google to Buy DoubleClick for $3.1 Billion

2007-04-17T10:04:00.000+08:00

http://www.pcworld.com/article/id,130722/article.html

Google has agreed to buy DoubleClick for US$3.1 billion in cash, an acquisition that strengthens Google's status as an online advertising powerhouse.

DoubleClick's network of advertisers and Web publishers, as well as its technology to serve ads and manage campaigns, is expected to boost Google's ad business, specifically for display and rich media advertising, which aren't Google's specialties.

Google generates most of its revenue from search engine, pay-per-click advertising, which are text ads that link to advertisers' Web sites, but it has lagged behind Yahoo and others in banner, graphical and video ads.

Google will purchase DoubleClick from private equity firm Hellman & Friedman and JMI Equity and management. The deal is expected to close by the end of the year.

Google's View

"By working together, we're going to be able to offer a variety of tools for advertisers to do better Internet targeting," said Susan Wojcicki, a vice president of product management with Google, speaking on a conference call with reporters. "Advertisers will be able to spend more and be able to make rational decisions about how they are spending their ad dollars."

The fact that there is such an "obvious alignment" between Google and DoubleClick advertising partners was an impetus for the deal, said Google Chief Executive Officer Eric Schmidt. "DoubleClick has been a partner of ours for a very long time, and some of the most important advertising partners of Google are in fact very big DoubleClick users," he said.

Google officials spoke only generally about product plans. "It's not good for us to speculate right now on what we might do," Schmidt said. "This merger is really part of a global growth strategy for Google. It's a way of solving, in an end-to-end way, problems in search and display advertising."

Effect on Microsoft

Recent rumors had Microsoft aiming to buy DoubleClick for about $2 billion, so today's announcement signals that a bidding war had erupted with Google, said industry analyst Greg Sterling of Sterling Market Intelligence.

The deal is a clear loss for Microsoft and it stands to affect Yahoo as well, because with DoubleClick, Google gets a much-needed boost in display advertising, Sterling said.

Companies such as DoubleClick that link advertisers and Web publishers have thrived in recent years, thanks to the strong growth in online ad spending, said Clayton Moran, a financial analyst with Stanford Group Company, in Boca Raton, Florida, prior to Friday's announcement.

"The facilitators of online advertising have done very well, because demand for Internet advertising has been very strong," Moran said.

He doesn't track DoubleClick because it is a privately held company, but he does follow publicly traded competitors such as 24/7 Real Media and ValueClick. Last year, Real Media's revenue was $200.2 million, an increase of 43 percent from 2005. Meanwhile, ValueClick grew its revenue to $545.6 million, an increase of 79 percent from 2005.

Microsoft's Online Woes

The deal may make it harder for Microsoft's struggling online division to compete with Google.

Despite heavy investments of money, resources and personnel to develop its own search engine and search ad network, Microsoft hasn't been able to come close to matching the levels of online ad revenue Google and Yahoo have achieved. It is painfully clear that Microsoft has failed to benefit as much as it should have from the surge in online ad spending of recent years.

Traffic to Microsoft's Web sites is strong. In fact, Microsoft consistently ranks first in Web site visitors worldwide. However, Microsoft hasn't monetized this traffic properly.

Moreover, Microsoft hasn't been able to compete effectively for traffic in the search engine market, where Google rules, and this has affected its ability to take advantage of search engine ads, which make up about 40 percent of U.S. online ad spending.

After peaking at $8.2 billion in 2000, U.S. online ad spending fell in 2001 and 2002, but it began regaining lost ground in 2003. In 2004 the market finally broke the 2000 record, ending with $9.6 billion in online ad spending. Growth rates in recent years have been in the 30 percent to 40 percent range. Online ad spending in the U.S. reached an estimated $16.8 billion in 2006, a growth of 34 percent compared with 2005, according to the Interactive Advertising Bureau and PricewaterhouseCoopers.

In December, Microsoft's share of U.S. search engine queries was 10.5 percent, while Google nabbed 47.3 percent, according to comScore Networks. In July 2005, Microsoft's U.S. search engine query share stood at 15.5 percent and Google's at 36.5 percent, according to comScore.

DoubleClick Background

DoubleClick, founded in 1996, serves ad buyers such as ad agencies and corporate marketers, and ad sellers such as Web site publishers. It has two main divisions. Its Dart division provides tools and services to both buy and sell advertising, primarily display and rich media ads. Meanwhile, the Performics division focuses on search engine marketing, commonly based on the pay-per-click ads in which Google specializes.

Updates / Changes

2007-04-11T14:45:00.000+08:00

going to update this soon.

But for my random or general blahs, i post it often on my multiply page.

Link

you will not see everything i posted there unless you're on my list. so add me first if you want.

Official launch of Adobe® Creative Suite® 3

2007-04-11T14:41:00.000+08:00

A new era in creative expression is about to unfold, freeing us to colour outside lines, to think in multiple dimensions, and to engage audiences like never before. Integration like never before is here, in editions for Web, Design, and Video.

Join the official launch of Adobe® Creative Suite® 3 and witness the groundbreaking technologies of Adobe. This event will include presentations by the executives and product demonstrations you have never seen before.

Manila
4 May 2007
09:00 - 17:00
Makati Shangri-La HotelMakati City, Philippines

To register:
http://www2.museondemand.com/NonSecure/Adobe/SplashPage1.aspx?EventID=4961

Philippine Blog Awards

2007-04-01T23:55:00.000+08:00

Eleanor and I went to the Philippine Blog Awards last night (March 31, 2007) at RCBC Plaza. Short event but it was okay. The group that i'm part of, Adobe User Group Philippines sponsored the event. And I was able to get to know other members of the group (new members and old members) for Philippine Blog Awards winners, go here: http://www.philippineblogawards.com.ph/

After the award show, Augphil members met up at starbucks...and raffled off a LICENSED Adobe CS3 product.... whoohooo... but well, i didn't win tho..hehe.. aww..too bad..but it's alright.. not my luck. all of us we're given official adobe products too (adobe ballpeeenn)...

Maybe, next year...imma join the awards... we'll see...hehehe...

[ My ID Pass, it's supposed to be Adobe User Group tho... not "Users" =) ]

Promoting stuff from my yahoo group =)

2007-02-16T12:00:00.000+08:00

Calling all Aspiring Graphic Artists and Multimedia Enthusiasts !

LAST 4 DAYS TO REGISTER!
DEADLINE OF REGISTRATION FORMS IS ON
FEBRUARY 20, 2007!

World Usability Day 2006

2006-11-12T23:29:00.000+08:00

*blogger's note: hey guys, attend this if you can.. this will be informative =) ..message me for more info.*

Series of talks and seminars focusing on emerging topics on usability and ergonomics to educate the public on the relevance of usabilty today. There will be a main seminar and several satellite events that will happen in different universities.

Programme
Date: November 14, 2006
Main Seminar: The Mob at Market! Market! (12nn-6pm)
Greg Moreno - Software Usability
April Cabello, CUA - Mobile Applications
Dr. Aura Matias - Ergonomics of Today's Gadgets*Main Seminar will have a PhP100.00 fee.
Satellite Events
De La Salle University, Manila (9am-12nn)
Hans Koch & Luis Buenaventura - Web 2.0 and Usability
Dr. Lloyd Espiritu - Usability Engineering
Ateneo Graduate School of Business, Makati (7pm-8pm)
Regnard Kreisler C. Raquedan - Blogging and Usability
University of the Philippines - Diliman, Quezon City (1030am-12nn)
Alvin Tan - Introduction to Usability
University of Santo Tomas, Manila (9am-1030am)
Rey Mendoza - Web Usability
Assumption College, Makati (9am-1030am)
Liza Flores - Creativity and Usability: Can they coexist?*Schedule and list of speakers may be revised.

More information can be found at the World Usability Day Event Page
Who should attend User Friendly?
Web Professionals
Software Developers
Project Managers
Testers/QA Professionals
Interaction Designers
Bloggers
Students

going back.

2006-11-12T23:18:00.000+08:00

i decided to finally use this blog again.
for artsy/techie stuff.

- kiel

finally here....

2006-01-02T10:44:00.000+08:00

ahehee... so i finally decided to make my own blog here at blogger / blogspot. Since, other friends been telling me to sign up here.. ok..here it is.. im pretty much bored right now even with so many things i should be doing...

have nothing really good to post right now... gonna get used to this blog first... i'll just post stuff later.