Me, Myself & I

The World the way I see it

Google to buy dMarc Broadcasting

Posted by Luminus on January 18, 2006

Google headquarters in Mountain View, California. Google said it had agreed to buy dMarc Broadcasting Inc., a developer of digital advertising technology for radio, for 102 million dollars.(AFP/Getty Images/File/David Paul Morris) Google Inc. is continuing to expand its advertising capabilities beyond the online world, agreeing to buy a company that automatically connects advertisers with radio stations. The price could top $1.2 billion.The company, dMarc Broadcasting Inc. of Newport Beach, Calif., creates an automated platform that lets advertisers more easily schedule and deliver ads over radio and keep track of when they air. On the broadcaster side, the dMarc technology automatically schedules and places such advertising, helping stations minimize costs.

Under the deal, announced Tuesday, Google would pay dMarc at least $102 million in cash. If performance targets are met, Google would make additional payments of up to $1.14 billion over three years.

The up-front cash payment will make only a small dent in Google’s reserves. Through September, Google had $7.6 billion in cash and marketable securities, though it has since committed to making a $1 billion investment in Time Warner Inc.’s America Online unit.

Google said it plans to integrate the dMarc technology with its highly successful Google AdWords platform, in which third-party Web sites share revenues with Google for carrying the Mountain View., Calif., company’s highly profitable search ads.

“Google is committed to exploring new ways to extend targeted, measurable advertising to other forms of media,” said Tim Armstrong, Google’s vice president for advertising sales.

Already, Google has bought advertising in print publications such as tech magazines and resold chunks of the space to its online advertisers.

Google shares rose 86 cents to close at $467.11 Tuesday on the Nasdaq Stock Market.

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Damn these guys are crazy and they sure as heaven know what they’re about. I’m actually looking up to these guys (among others) to perfect a business model for myself.

Look out world, here I come.

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One Response to “Google to buy dMarc Broadcasting”

  1. Good to hear Goole is expanding offline just like offline companies are expanding online. Everyone needs to be diversified, but more importantly I think Google understands very clearly the new world online order–free, free, free. Just like tv, once the consumer buys their internet connection –consumer than wants whats familiar–the pay once and the rest is free free free, just like cable tv and subscription radio. This model forces businesses to make money through advertising–nontraditional advertising.
    My.02,
    Nerissa
    TheVideoQueen.com

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