Google: Doubleclick purchase to benefit smaller companies

Mountain View (CA) - Google’s announcement that it planned to acquire digital ad service Doubleclick in April raised some eyebrows, and now Google is explaining its decision in more detail.

Product manager Alex Kinnier wrote in Google’s official blog four main reasons for the acquisition. First off, he says, Google and Doubleclick are "complementary" companies and the merge will allow more expansion for both of them.

Second, it will allow third parties to enter Google’s Adsense network, allowing a more open platform for performance metrics and the like. Next, just the fact that the two are combining will increase efficiency and effectiveness.

Finally, says Kinnier, the combination of the two ad platforms will help to fill all possible ad spaces and increase buying options for smaller companies.

The move comes as Google is somewhat nervous about the future of online advertising. Text-based ads still dominate the market, which is where 99% of Google’s revenue comes from, but video and graphic ads are taking over more of the marketplace. Google has very little stake in that form of advertising.