It is now official – Doubleclick is now part of Google – the Federal Trade Commission clears Google’s acquisition of Doubleclick. Good News and Bad News for Google.
The Good News: This gives Google an increased offerings for online advertising solutions for publishers. Google has always owned the publishers in terms of advertising solutions. This deal reinforces that. When the deal was announced I saw it as a strike against Microsoft which just announced a major( $500 million) ad deal with Viacom. Google’s new capabilities give them more range into the new ‘microtargeted’ environments like ‘digital venues’ and social networks. This gives their monetization products more ‘headroom’.
The Bad News: This is a big threat for ISPs and Carriers. Strategically I see Google getting into trouble with ISPs and carriers. In talking to one person at a large ISP they say that the ISPs are avoiding Google at all costs. As Google goes after the infrastructure play with Andriod, Apps, and broadband ad services, the Doubleclick integration will pose a big threat to ISPs and carriers. Why? Because Google is going for the ‘choke points’ to control the managed service side of software and integrate their ‘monopoly’ in advertising into the infrastructure. Lets see how Google plays this. To me Google Apps has already played their hand- beat Microsoft by targeting the ISPs rather than innovate the code of Google Apps. Note: I use Google Apps because it’s the best on-demand software but I would use Office immediately if they came out with a on demand version. Why? Microsoft has better software in the Office suite than Google Apps.
Will Google crush upstarts and eliminate the competition at the ISP level? If I were Google I do that immediately because it’s the best competitive strategy move. Can they pull it off? I think that they can. Google is building a new ‘software’ model. If Microsoft can’t match it then Google might just be the only game in town.
What do you think?