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GoogleClick: A Precedent For Ad Domination?

If Google succeeds in buying the graphical ad-server DoubleClick, pending government approval, the search giant will no longer just be the search giant. The company's aggressive foray into traditional media, like print, radio and now, TV, proves that.

Indeed, it would be hard for CEO Eric Schmidt to deny that Google's aim is to dominate global advertising. Google would corner a big chunk of online advertising with the addition of DoubleClick. Big G already accounts for two-thirds of search revenue; with DoubleClick, it would gain a hefty share of display advertising -- and a lot of new business. Microsoft and AT&T are complaining that Web advertisers would then be forced to do business with Google, whether they like it or not.

DoubleClick connects big Web publishers (Google competitors) to national brand advertisers, serving multimedia display ads, a market Google has struggled to penetrate--especially with big publishers. Together, GoogleClick could potentially offer these publisher-competitors an offer they can't refuse, by auctioning off their display inventory. Publisher's would choose to do this--it's not the only option. "This is a very, very competitive market in terms of the number of choices," Schmidt said. "We don't see the concern."

Read the whole story at Business Week »

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