Internet search giant Google is in talks to acquire the display advertising company, AdMeld, for around $400 million.
At present, Google heavily depends on text search ads for its major revenue generation, but if this acquisition sees the light of the day, it will help Google establish enter, and establish its foothold in the display advertising business.
Last year, Google bought Invite Media, a company that helps advertisers and agencies use “real time bidding” to buy display ad space.
The procurement of AdMeld is Google’s latest move in the display advertising business.
“We’re at the beginning of a user-focused revolution, where people connect and respond to display ads in ways we’ve never seen before.” — Neal Mohan, Google’s vice president of display advertising
The blog company, TechCrunch first reported that the deal has been inked, but inside sources leaked that the deal had not been clinched and negotiations might still collapse.
However, this acquisition by Google is likely to attract serious scrutiny from government regulators, as Google already dominates in text and display advertising arena, said the Times.
Google keen to take advantage of growing display ad trend
On Thursday, Neal Mohan, Google’s vice president of display advertising, in a speech at the Interactive Advertising Bureau’s Internet Week affair, highlighted Google’s Intent in display ad business.
According to him, the display advertising would become a $200 billion industry and websites will offer more interactive ads, with video or in-ad games.
“We’re at the beginning of a user-focused revolution, where people connect and respond to display ads in ways we’ve never seen before,” Mohan wrote in a blog post regarding his speech.
Launched in 2007, AdMeld is driven by Michael Barrett, former chief revenue officer for Fox Interactive Media.
The company banks more than $30 million in venture capital from Foundry Group, Spark Capital, Norwest Venture Partners and Time Warner Investments, and it currently has over 500 customers including Fox News, The Weather Channel, and Hearst Television.
The ad optimizer AdMeld helps publishers sell display ads in real time. The advertisers can instantly bid for ad space every time an internet user lands at a publisher’s web site, for showing their ads to that user.
The New York based company provides publishers the ability to catch the best prices for their ad inventory using Google’s DoubleClick Ad Exchange, Yahoo’s Right Media, OpenX and other ad exchanges.