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Google Buys Ad Optimizer Teracent

Google’s acquisition spree continues: The company has bought Teracent, a start-up that customizes online ads on the fly. BoomTown reported in September that Google (GOOG) was interested in the San Mateo, Calif.,-based company, which is filled with veterans of…Yahoo (YHOO).

No purchase price disclosed, but I’m fairly confident this was in the sub-$50 million category. Teracent had been looking to raise something like $5 million earlier this year and had previously raised around $6 million, much of it from New Enterprise Associates.

I’m told the company was doing something under $2 million a year in revenue, and when I talked to CEO Vikas Jha in September, he told me that the three-and-a-half-year-old company is profitable.

One immediate beneficiary of the deal: Rival ad optimizer Tumri, which does very similar work.

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  • I wonder when Google's acquisitions of every online advertising player out there is going to draw the attention of the Justice Dept.?
  • Let's not forget this is great news for some of the other players in the display ad management platform space:

    AdBean
    Permuto
    Dapper

    ...just to name a few.

    Disclosure: I own AdBean :)
  • OK Steve, I'll take you up on this. How does AdBean differ from Teracent and Tumri? Please try to answer in non-marketing-speak.
  • stevekrol
    Thank you Peter, I will try me best to leave marketing speak out. AdBean's display platform helps companies simplify the workflow into design, place and track ads. It makes the online display channel more accessible by providing a centralized way to manage a very fragmented process. Our platform is flexible by design to match our client’s business process, not ours. We reduce barriers like high ad production costs, minimum buys, and channel know-how allowing new advertisers to enter the market. Our platform gives advertisers new possibilities and agencies and publishers new delivery model options.

    I think the difference between any competitors is their view on market opportunity and the problem they are solving. Our focus is on accessibility while others are solving a need for complex creative optimization. Any funding and M&A activity in the dynamic display space is good for the companies that are trying to help display be a more effective channel. Google recognizing this with the Teracent acquisition will bring more attention to these types of solutions.
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Peter Kafka has been covering media and technology since 1997, when he joined the staff of Forbes magazine. Most recently, he has been the managing editor of the tech and media Web site, Silicon Alley Insider. Read more »

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