FTC nod for Google/DoubleClick deal means more targeted ads
December 24, 2007
Andrew B. Lustigman is principal at The Lustigman Firm
The gift came in early, but what was in the sock for search giant Google Inc.? Sign-off from the Federal Trade Commission to buy DoubleClick, the world's No. 1 display ad serving company.
While it is still unclear what direct ramification this approval will have on the nascent mobile advertising category, a leading marketing industry-focused lawyer sees improvements in targeted advertising.
"The FTC's announcement that it will not seek to block the Google-DoubleClick merger on antitrust grounds opens the door for a potential merger that would combine the industry leaders in targeted portal and third-party advertising," said Andrew B. Lustigman, attorney and principal at New York-based Lustigman Firm.
"If the merger of these market leaders goes through, the impact on mobile marketing and Internet advertising may be substantial," Mr. Lustigman said. "Advertisers and consumers should likely expect greater refinement in targeted advertising on the Web, although advertisers should anticipate fewer choices in non-portal advertising opportunities."
While the FTC has saluted through the DoubleClick acquisition, the prickly European Commission has yet to give its approval.
Making its decision, the FTC rejected any competition concerns and stated that Google and DoubleClick are complementary businesses and do not compete with each other.
Google primarily sells text-based ads on its site through its AdWords program and on others' sites through its AdSense product. DoubleClick delivers and reports on display ads on publisher sites.
"The FTC's strong support sends a clear message: This acquisition poses no risk to competition and will benefit consumers," said Eric Schmidt, chairman/CEO of Google, in a statement.
"We hope that the European Commission will soon reach the same conclusion," he said, "and we are confident that this deal will deliver more relevant ads for consumers, more choices for advertisers and more opportunities for Web site publishers."