Google recently announced its acquisition of DoubleClick in a $3 billion deal. Whilst this may open new opportunities for both publishers and advertisers, it has me a little worried.
Google established itself with the mantra ‘Do no evil’ and it is becoming increasingly important that Google stays true to this as it becomes ever more dominant and moves further into offline businesses.
Google is looking to dominate online advertising, this latest acquisition proving that money is no object against their desire for ever increasing market penetration. Is Google becoming overly dominant?
The advantages of Google’s advertising power
Web publishers who may struggle to gain access to the large ad agencies such as DoubleClick may benefit should Google integrate their new agencies into the Google AdSense model. This could be beneficial for publishers as they will find a larger potential pool of advertisers for their site, which should in turn increase their revenue.
The disadvantages of Google’s advertising power
As Google acquires ad agencies, advertisers and publishers alike will find they have reduced choice when it comes to advertising solutions. Basic economics suggests that the less competition there is, the higher the prices without the consequential rise in efficiency or service.
Some of Google’s acquisitions can be seen as immediately beneficial – the introduction of Google Checkout now offers an alternative to PayPal which pretty much ran a monopoly on small payment transfers.
Google’s latest foray however, has me a little worried for the future. It is using is huge financial power to increase its influence in every area of the online and even the offline world.
How do you feel about Google? Do you have any concerns about their increasing dominance, or are you happy with their growth and influence?