Agencies, Publishers Might Not Welcome Google or Microsoft Acquisition of DoubleClick

Missing from the euphoria brewing over DoubleClick (DCLK) between Microsoft (MSFT) and (GOOG) is the fact that agencies will drop DCLK like a hot potato if Google, and to some extent, Microsoft owned it.

I have already written about how this makes little sense, but here are some more thoughts:

This deal (DCLK selling to either Google or MSFT) very well might happen because of the greater fool theory, but it makes little, if any sense once you put down the koolaid.

Agencies use DoubleClick to manage campaigns, serve and track advertisements. Agencies fear Google because Google wants to automate their existence.

As such, agencies will never use a DoubleClick product if it belonged to Google, or by extension, Microsoft, because it would become as bad if not worst as Google.

Of course, that’s half of DCLK’s business, the other half is Dart for Publishers, of DFP. Here’s a little secret: publishers reluctantly welcome Google’s Ad Sense, but in hindsight, they rue the day they opened up their inventory and let Google’s Trojan Horse in.

Few will admit it, but publishers today wish they would have - from Day 1 - maintained all ad contacts and relationships with advertisers direct.As such, publishers too will not welcome Google owning the software they use to serve ads… it would give Google way too much power and intelligence over their inventory.

Google (or MSFT) could turn around and selectively handpick the best real estate, the best format, the best everything and leave the publishers the least performing ad units, types, sizes etc…

This deal might happen because people are giddy and drunk over dealmaking, but there is no real sane reason for this to materialize.

Comments

[Jeff Molander_:]

Ashkan:
Your suggestion that agencies will drop DCLK's tool set based on automation fears seems extreme. As well, aQuantive has proven that a company can successfully navigate these waters -- offering agencies a tool set (Atlas), distribution (DrivePM) while directly competing with them (AvenueA). Why can't big G do the same? I guess time will tell!

2007 Apr 18 02:16 PM