Google looked to buy New York-based ad startup Admeld, but talks broke down over price, according to various sources in the industry.
We’ve heard Google was willing to spend $150-$200 million on Admeld, but that price was too low for Admeld. Admeld raised $15 million funding last August.
Admeld is a real time bidding platform (RTB), which means publishers can sell ad inventory in real time to the highest bidder.
Yesterday, in conjunction with Forrester, Admeld released a (self-serving) study on the U.S. RTB market, projecting it would total $823 million for 2011, up from $350 million. That represents 8% of the display ad market and its only going to grow, so obviously Google wants to play in this space.
One ad industry exec tells us, “Admeld is one of the three companies Google should buy.”
Another source says Google will probably look at Admeld rival Pubmatic next.
Google is a huge company with loads of business development people looking for acquisitions, so the fact that its looking at Admeld isn’t necessarily surprising.