Feeds

Google buys Invite Media, invites protest from rivals

'Conflict of interest' claims thrown at ad broker

Build a business case: developing custom apps

Google upset the online display ad market yesterday, after it confirmed the takeover of Invite Media.

Immediately following the buyout, claims of “conflict of interest” were thrown at the world’s largest ad broker.

Invite Media currently allows advertisers to buy display ad spots from a wide cross section of ad exchanges, including Google’s own DoubleClick Ad Exchange, Yahoo!’s Right Media and Microsoft’s AdECN.

Mountain View’s rivals in the online display ad biz are worried that swallowing Invite Media means the company now controls too much of the market.

One such company, The Media Innovation Group (MIG), owned by WPP, one of the world’s largest ad agencies, expressed concerns about the acquisition in confidential papers seen by The Register.

The firm said that Google’s takeover of Invite Media, which the search giant reportedly spent $70m on, could stifle the display ad business. It acknowledged that Yahoo!’s Right Media was already seeing its share of the market fall, and suggested that Carol Bartz’s company could consider an acquisition of its own to compete with Google’s increasing dominance.

MIG has its own digital advertising product - dubbed B3 - which it describes as the “leading agency tool for acquiring and optimising display advertising”.

The main concern among MIG and other online ad platform makers is that Google’s decision to buy the New York and Philadelphia-based Invite Media real-time bidding ad exchange could cause “conflict of interest” problems among other key web players such as Microsoft and Yahoo!

Google, for its part, said it was simply responding to its desires to invest “significantly in the display advertising ecosystem” with this buy.

The company said it planned to improve Invite Media’s technology and products as a separate platform. Eventually Google hopes to make it “work seamlessly” with its DoubleClick for Advertisers (DFA) product.

“DFA enables advertisers and agencies to effectively plan, target, serve and measure display ad campaigns across the web. Integrating Invite Media’s technology will help DFA’s clients to easily buy ad space across multiple ad exchanges, as part of managing their broader display ad campaigns.

“Invite Media’s platform will of course continue to be available to any agency or advertiser, whether they use DFA or not,” said Google product management veep Neal Mohan, who was clearly keen to settle jingly nerves among its competitors.

He added that the DoubleClick Ad Exchange would “continue to provide exactly the same open and neutral access to ad space for multiple buyers, partner support and API availability as it has always done”.

It’s unclear at this stage whether the acquisition will be scrutinised by regulators in the US and Europe, however. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
KDE releases ice-cream coloured Plasma 5 just in time for summer
Melty but refreshing - popular rival to Mint's Cinnamon's still a work in progress
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Another day, another Firefox: Version 31 is upon us ALREADY
Web devs, Mozilla really wants you to like this one
Google shows off new Chrome OS look
Athena springs full-grown from Chromium project's head
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.