Vijay Anand | The Startup Guy.

The Online Advertisement War: When Logic Ceases to Exist.

Posted on: May 22, 2007

I am coming across way too many blogs, both from the Microsoft camp and from the Google Camp trying to justify the recent acquisition of DoubleClick and aQuantive and some very interesting (to say the least) metrics to measure and quantify the valuations.

I dont think anyone would be quite close to the truth. Google probably had a strategy when it bought doubleclick. Given that more than 70% of the ad banners on the web are being served by Doubleclick, I guess Google had a good reason to buy it out. They are trying to get into the “graphical” ad space – so to speak – with their video ads and such and it makes sense for them to step into it.

The transition will prove to be interesting, as most of these banners that Doubleclick serves are based on Flash 7, and the recent and latest editions of flash versions do have some compatibility issues. Doubleclick has been hesitant to upgrade fearing a downtime. Perhaps Google is their savior at their time of need.

Microsoft on the other hand is just trying to prove to point that they can equally compete. With one that is trying to measure up, there is simply no other logic than that. What else can you say about a company which is willing to pay you for using their search engine, compared to the competitor who makes money out of every search?

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1 Response to "The Online Advertisement War: When Logic Ceases to Exist."

Online Advertising, is unfortunately following the same old model of offline advertising – INTERRUPTIVE ADVERTISING. They are making things worse by tracking people’s behaviour online, and trying to guess what might be of interest to them. Soon there would be a backlash from the web users, who would not like to be tracked and served ads. The better approach would be to let the viewer decide when and what ad he/she wants to see. indibiz.tv is one such site, its the first online video directory of brands commercials. The advantage would be that people have come to see a brands commercial, and a brand can respond through any of the touchpoints the viewer decides after viewing an ad. A brand need not pay for the ad being served or the ad being viewed, but only when people respond to the ad. My bet, is that’s what its going to be in the future…

As to the valuations of “Double Click” and “aQuantive” time would soon tell..

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