Google Extends Ad Reach With DoubleClick Approval


Google Chairman and CEO Eric Schmidt welcomed the decision and said in in a blog post that Google will begin with the integration immediately.

"As with most mergers, there may be reductions in headcount," Google said. "We expect these to take place in the U.S. and possibly in other regions as well. We know that DoubleClick is built on the strength of its people. For this reason we'll strive to minimize the impact of this process on all of our clients and employees."

The merger extends Googels position in the lucrative, $40 billion Internet advertising market. U.S. regulators approved the purchase in December, over objections from Microsoft and others that DoubleClick would give Google too much power over online advertising and private information about Internet users. DoubleClick, of New York, has 1,500 employees, while Google, of Mountain View, Calif., employs about 17,000 workers.

Schmidt said Google will begin planning detailed integration of the advertsing platforms of the companaies.

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"Advertisers and publishers who work with us have long asked that we complement our search and content-based text advertising with display advertising capabilities," he said said. "DoubleClick gives Google the leading platform for display advertising, enabling us to rapidly bring advances to the market in technology and infrastructure that will dramatically improve the effectiveness, measurability and performance of digital media for publishers, advertisers and agencies."

Schmidt also promised to improve users' online experience with more relevant dispay ads. "As the combination of Google and DoubleClick delivers better, more relevant display ads, we're also looking forward to delivering an improved online experience to users."

Privacy protection, a concern brought up by critics of the acquisition, will be a priority in the merger, he added. "Because user trust is paramount to the success of our business, users will continue to benefit from our commitment to protecting user privacy following this acquisition," Schmidt said. "And our scale and infrastructure mean that users will also be spending less time waiting for web pages to load. Ultimately, we believe that by combining our advertising network with DoubleClick's display ad serving products, and by investing resources in the display ad business, we will be able to help publishers and advertisers generate more revenue. That in turn will fuel the creation of even more rich and diverse content for Internet users everywhere." Nonetheless, BEUC, a European consumer's organization, said the acquisition has failed to adequately address privacy issues.

"We are disappointed that the Commission has not taken more into account the data protection and privacy issues that are crucial for Internet users," said Monique Goyens, Director General of BEUC. "We hope that from now on the new Google/DoubleClick entity will rigorously follow the European legislation. Moreover, given its position, Google has a duty to set an example to avoid a "race to the bottom" of consumers' privacy rights on the web."