Quite simply it means Google is consolidating it’s overwhelming dominance of display advertising. From my initial glance at the acquisition, it appeared that Google was simply growing its already massive analytics toolbox, but I now believe that this is only a small part of their acquisition rationale. The more significant byproduct of the acquisition is the growth Google’s display ad presence.
Admeld’s technology, most notably its yield optimization service, will undoubtedly be incorporated into Google’s own DoubleClick. This does not preclude the possibility that Admeld will continue to operate its original service; the future development efforts will most likely be redirected to doubleclick. Maintaining Admeld will certainly be part of the strategy to retain Admeld’s publisher client base, which is certainly a larger part of the acquisition.
However, a much more powerful and less intuitive benefit of the acquisition is the boost Admeld will make to Google’s display ad presence by increasing their queries per second (qps) volume. Queries per second is a direct measure of the volume of display ads), and these queries are generated by Sell-Side Platforms (SSPs) like Admeld.
I anticipate that Google’s acquisition of Admeld will boost the value of the remaining Sell-Side Platforms, and we even may be seeing Microsoft looking to acquire one of the other major QPS generators.
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