The  European Commission has granted its unconditional  approval to Google’s 3.1 billion acquisition of DoubleClick.  The agreement between DoubleClick and Google just might mark a turning point for online advertising, giving way to  new scenarios and redefining the power configuration of  this sector

The agreement between Google and DoubleClick, which took place after the endorsement of the European Commission, represents a decisive moment in online advertising as it represents the merging of  DoubleClick, the last heir of  web1.0, and Google, one of the most powerful companies of web2.0.

An interesting perspective on this extremely important merge and its consequences on the market of online advertising  is offered by Tim O’ Reilly, “What Is Web 2.0 Design Patterns and Business Models for the Next Generation of Software”, in which the author delineates the differences between online companies and how they conceive internet in the eras of Web 1.0 and Web 2.0.

In particular, he analyses the differences between DoubleClick and Google and examines the different business strategies in advertising resulting from their different perceptions of the web.

O’ Reilly points out that for DoubleClick, which is associated to an Internet idea that belongs to the 90’s, the web denotes publishing as opposed to participating, and therefore the power is in the hands of advertisers and not of the consumers making the major sites the driving forces of the internet. Google on the other hand, believes in “promoting the self service power of the user and  data management with algorithms in order to reach the entire web and not only the sidelines, to reach the whole length of the tail and not only the head.

A fundamental element of this distinction is Chris Anderson’s concept of long tail, meaning the collective power of small sites that make up the most part of the Web.

Ever since its beginnings, DoubleClick limited its market to a few thousand major sites, while Google appreciated  the importance of placing online advertising on any web page and has always been conscientious of user requirements favoring  advertisements that were minimally invasive,  context related and consumer friendly.

Google’s is an important step directed towards the fusion of its advertising model with that of DoubleClick, which stemmed perhaps from the realization that  in order to progress,  the important inheritance left behind by web 1.0 and represented by a society characterized by its  display model and serving advertising, could not be ignored.

Meanwhile Google CEO Eric Schmidt briefly outlined the benefits of this merge and how it will be managed on Google’s official blog: “with the combination of  Google and DoubleClick we will promote best and most important display ad in all the to fully satisfy online users. As the trust in our users is essential to succeed in our business, they will continue to benefit from of privacy protection policies even after the acquisition. Finally, we believe that the fusion of our advertising  network  with  DoubleClick ad serving products combined with the investment of resources in the display advertising business, will make it  possible to help both publishers and advertisers generate higher revenues. Also, we will be encouraging richer and more interesting  contents for online users”.
The agreement between the two companies  can be interpreted as the rejoining of the head, represented by all the major sites, which are the constant objective of DoubleClick, with the long tail, on which Google bases its online advertising and as the result of the realization that both advertising models, although worlds apart, were bound to merge into one single entity.

Simona Fiore
Magazine Editorial Staff

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