Google (GOOG) today announced it has acquired Teracent, which helps agencies use data to shape their online creative.
Google bought Teracent because it wants to dominate only display advertising like it already does search.
Google did not disclose a price.
On its LinkedIn company profile, Teracent describes itself as “a market leader in the space of data-driven ad optimization.”
“Leading advertisers and agencies use Teracent’s platform to exploit increasingly rich and granular audience data available to them, in order to optimise their display ad campaigns. In addition to working directly with advertisers and agencies, Teracent platform also powers ad campaigns for some of the biggest ad networks and data providers.”
Google announced the news in a blog post:
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Can you spot the difference between these two sample display ads? Of course you can. However, the most important difference is not discernible to the naked eye.
The lower ad was customised and chosen from thousands of different creative elements, automatically and in real-time, by machine-learning algorithms developed by Teracent, a San Mateo, California startup.
We think that this technology has great potential to improve display advertising on the web. That’s why we’re pleased to announce today that we’ve entered into a definitive agreement to acquire Teracent. The transaction, which is subject to various closing conditions, is expected to close this quarter.
Teracent’s technology can pick and choose from literally thousands of creative elements of a display ad in real-time — tweaking images, products, messages or colours. These elements can be optimised depending on factors like geographic location, language, the content of the website, the time of day or the past performance of different ads.
This technology can help advertisers get better results from their display ad campaigns. In turn, this enables publishers to make more money from their ad space and delivers web users better ads and more ad-funded web content.
We’re looking forward to welcoming the Teracent team to Google and to making this technology available to our display advertising clients — including those who run display ad campaigns on the Google Content Network and our DoubleClick clients.
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