Google Buys Motorola Mobility For $12 Billion; Dentsu Picks Up Display Ad Marketplace AdJug

Google and MotorolaHere's today's AdExchanger.com news round-up... Want it by email? Sign-up here.

Buying Mobile

It may not be audience buying, but you can't avoid $12 billion. Google's $12 billion acquisition of Motorola caught everyone by surprise yesterday. Read the Official Google blog post on the deal. Even an executive from a big company in Redmond, Washington suggested to AdExchanger.com that "the deal just does not make sense" as it will likely alienate handset manufacturers that use the Android operating system - such as HTC and Samsung - and force them over to the competition and the Windows Smartphone. The executive suggested that Google may be buying Motorola for the 25,000 patents as a defensive move and that it will aim to avoid channel conflict by selling off the rest of the company. LUMA Partners' Terence Kawaja told Bloomberg TV that it may be a long time (much more than a year) before anyone knows for sure whether the transaction was a success or not. See the interview. The Business Insider's Henry Blodget wrote, "Google just added 19,000 new employees. 19,000! Google itself only has 29,000. Google just increased the size of itself by 60%--in a company in which culture is crucial. Does Google really have the management in place to manage that?" Read it. Reporting on the Google-Motorola call with members of the press, All Things D's Peter Kafka writes, "Google insists that it’s going to run Motorola as a separate operating unit, and that doing so will mean that it won’t grant it any special advantages compared to other Android partners like Samsung, HTC, etc." Read the Kafka's analysis and call synopsis. Over on Forbes, Rob Hof thinks the deal is all about ads: "So the key takeaway from this deal (...) is this: The company views mobile advertising as its next big business as computing via smartphones and tablets goes mobile, and it’s willing to do almost anything to make sure it’s the leading player in that emerging realm." Read it. It's all about display - one way or another.

Dentsu Buys Some AdJug

Have another swig of digital marketplace media, Dentsu. The UK's Guardian reports that the "Japanese ad agency continues to ramp up web capability, having bought the Steak Digital network in June" and now it's buying 80% of display ad marketplace AdJug. The Guardian's Todd Sweney writes, "The acquisition by Dentsu, which also owns a stake in French advertising giant Publicis Groupe, is the latest move by the Japanese advertising giant as it looks to ramp up its digital capability." AdJug will be managed by Dentsu marketing platform company, IgnitionOne, which will provide an optimization overlay on AdJug's display ad inventory. Read more. Boutique i-bank Jordan Edmiston Group helped bring the transaction together. JEGI's Tolman Geffs told AdExchanger.com that M&A remains all about "finding the best match. (...) Ad tech company values are often very buyer-specific, and we are seeing up to a 2x spread between high and low bids in many processes. So, owners will want to make sure they have done the work, or hired the right banker to do the work, to find that 2x buyer."

Click Love

Perish the thought! Media pundit Andrew Ettinger says on iMedia Connection that the click is still important! - in spite of all those click haters out there who say the click must be retired. Ettinger writes in a think piece that some who think rich media is a better alternative are mistaken, "Replacing the click as the primary metric is a bad idea. Clicks dominate our lives because they are simple to explain and easy to track. Clicks can be optimized on the fly (...). Most importantly, they can be used to compare different publishers or placements in an easily understood manner. No single metric serves as a viable alternative to the click." Read more "click love."

No More, Mr. NICE Guy

On the Media6Degrees blog, CEO Tom Phillips says that beyond the click, display advertising works and NICE analytics is the key. He writes, "The new methodology is called Non-Invasive Causal Estimation (“NICE”). NICE is a non-invasive analysis that uses mathematical models to calculate the likelihood of populations to convert, comparing those exposed to an ad to those not exposed. The models constructed control for all confounders (...), including the fact that our targeting technology tends to serve ads to people who are more likely to convert." Read it.

About Those Video Ads

The Wall Street Journal's Sam Schechner finds that Internet video isn't providing the best, or most compelling, content these days. Schechner writes, "That battle between the old and new ways of watching TV is putting networks and studios in a tricky position—balancing a new, growing online market for shows with a traditional market that is facing new threats and still accounts for the lion's share of revenues." Read more.

Where The Wild Spending Is

Research firm eMarketer says that "More than a third of new online ad spending this year will come from the two industries" in a blog post on the company's site. Which categories, you ask? "Retail and CPG," says eMarketer. Read more and see the pretty graphs. Meanwhile, eMarketer predicts, "Between 2010 and 2015, eMarketer projects that the telecom industry will lose the greatest share of online ad spending, dropping from 13% of the total to 9.2% during the period."

A Is For Ads And Amazon

On Ad Age late last week, OwnerIQ CEO Jay Habeggar says that online mega-retailer Amazon.com is destined to be a big player in online advertising. Habegger offers, "Every retailer should think about how to use site data for third-party ad targeting, but not every retailer has what it takes to build a proprietary ad network on par with Amazon. At the moment, the difficulties of entering this space limit the opportunity primarily to the biggest online retailers, for a few reasons." Read more.

GRP? It's Wrong

In an op-ed on MediaPost, agency exec Barry Lowenthal from media buying and planning agency The Media Kitchen isn't buying the new proposed GRP metric to be used for online media buying. He lays out his objection simply, "While I understand trying to apply a GRP metric to online media, I think it's the wrong discussion. Instead, I'd like to try and force other media to be more accountable. If other media can't be more accountable, they should lose budgets to those media that are accountable, trackable and measureable." Read more.

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