Google has acquired dynamic digital ad customization firm Teracent, bolstering its display, mobile and video ad offerings.
Google has acquired dynamic digital ad customization firm Teracent. The deal not only bolsters Google's display ad capabilities; it could give it insider knowledge of some of its biggest competitors, Yahoo and AOL.
"This is a significant building block as we continue to build our display business," said Neal Mohan, VP product management at Google. The company intends to pair Teracent's technology with the DoubleClick platform as well as its content network for display advertisers. Terms of the deal were not disclosed.
Teracent, which competes with other dynamic ad firms like Tumri and Dapper, customizes ad creative and offers based on behavioral, contextual, demographic, geographic, and other advertiser data such as purchase history. Teracent enables dynamic ad creation and optimization for mobile and video ads, too.
In May, Yahoo announced partnerships with Teracent and Tumri to expand the capabilities of the Yahoo Smart Ads dynamic ad platform. Yahoo later extended its deal with Teracent to the mobile platform, giving advertisers similar dynamic ad capabilities on wireless devices.
It is unclear whether Yahoo will continue its relationship with Teracent if the Google acquisition is approved. Mohan declined to comment on the Yahoo partnership, and Yahoo has not responded to ClickZ's inquiry regarding the future of its deal with Teracent.
Teracent's partnerships with ad networks should remain intact if Mohan's comments are any indication. The dynamic ad technology "will be used on the DoubleClick platform, and we imagine others," he said. "The DoubleClick platform for advertisers specifically has had a long heritage of providing tools that work across publishers and networks." The system will also be connected with Google's own display ad network. There are no plans to apply the Teracent technology to dynamically optimized Google's text-based ads, according to Mohan.
While Mohan stressed the acquisition is focused on traditional display, he added that Teracent's system is "flexible and we believe the core capabilities can be used in a variety of different formats."
Earlier this month, Google agreed to purchase mobile ad network AdMob for $750 million. Both of the recent acquisitions can be viewed as shots across the bow of Yahoo. The companies will now compete more directly in the dynamic and mobile ad arenas.
Google has also stepped up competition against Yahoo's Right Media ad exchange by officially launching its DoubleClick ad exchange. Since then, Yahoo has announced it will clean up Right Media by removing several low-value brokers from its exchange.
Teracent SVP, Sales and Marketing Chip Hall helped create the Smart Ads product for retail advertisers while working at Yahoo. In addition to the glimpse into Yahoo's inner-workings that Hall may provide, Google may also learn more about AOL through the Teracent acquisition. Teracent VP, Business Operations Nick Cherry worked with AOL-owned Advertising.com for almost eight years, according to the Teracent Web site.
"Regardless of their background, we really found the team there to be an exceptional team...in terms of the customer relationships, the technology, etc.," said Mohan.
Mohan would not answer questions about where Teracent's staff will be based if the acquisition goes through. The company is based in San Mateo, CA.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
September 17, 2014
September 23, 2014
September 30, 2014
1:00pm ET/10:00am PT