Google Buys Display Ad Startup Teracent

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Google (NSDQ: GOOG) is on a shopping spree. The company just announced it is purchasing Teracent, a startup which sells machine learning technology used to create display ads that are optimized in real-time. The purchase is Google’s third this month and its fifth since August and comes as Google CEO Eric Schmidt has said the company would increase the pace of its acquisitions.

Teracent’s targeting platform can takes thousands of elements from a display ad and then regroup them instantly based on various factors, like the geographic location of a website visitor or the past behavior of ad viewers. The startup also has a partnership with Yahoo to target mobile ads.

In a blog post, Google notes other display advertising features it has introduced recently, including improved measurement tools, and says it will make Teracent’s technology available to its display ad clients.

Terms of the acquisition — which is expected to close later this quarter — were not announced. Teracent had raised $5 million in a first round led by New Enterprise Associates in March 2007.

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Sam Barnett

Congratulations to Teracent!

Dynamic Ads have delivered on expectations and have both increased the relevance of ads to users and resulted in far superior performance for advertisers. Struq is the leading provider of banner creative content optimisation in Europe, and we customise the content of ads in real time based on the user’s online browsing activity. We currently receive at least ten times the click through rate and fourteen times the conversion rate over standard display ads.

As early adopters and pioneers, Google’s acquisition of Teracent shows where the future of online display advertising is.

Sam Barnett

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