Googleclick

The merger of Google and Doubleclick has been approved by the regulators in the United States.  There is an old Russian proverb that states that “an even an unloaded gun fires in the end.” The merger creates an enterprise that could, if it so desired create an effective monopoly in online advertising in this country and in any other market where their share of searches and ads served were high.The regulators are assuming that they won’t abuse their position and maybe they won’t but it does pose an interesting question for those of us in the media agency business. By and large of every $ we spend on behalf of our clients we keep 5 to 10 cents while Google, NBC or whoever keeps 90 to 95 cents. So in our case as a $50 billion billing enterprise globally we get to keep somewhere between $2bn and $5bn or much less than half of Google’s share in the US alone.So the question is this. “Why should we be considered as potential monopolists based on numbers  that are dwarfed by those on the other side of the transaction?” My sense is that the Googleclick ruling should open up the next wave of agency mergers so that our clients can fight on more equal terms. 

Leave a comment

Filed under The world we work in

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s