Google’s DoubleClick: Huge growth potential

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Google happy with DoubleClick program

Google, Inc.’s (GOOG)(GOOGL) DoubleClick Ad Exchange program is a technological framework for conducting programmatic or automatic real-time auctions of display ads. During its earnings conference call, Google claimed that DoubleClick’s become the go-to tool for marketers and agencies. And the number of ads impressions from DoubleClick has doubled year-over-year.

Management also said it continues to sign private advertising exchange deals with publishers, which allow clients to generate revenue from premium ad space. Last quarter, Google signed deals with publishers Twenty-first Century Fox, Inc. (FOXA) and Edmund.com, Inc.

Ad programmatic US ad spending

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The programmatic ad market

The programmatic digital ad market, for which DoubleClick technology was developed, has huge growth potential. According to a report from eMarketer, and as the chart above shows, programmatic digital ad spending in the US will more than double, from $10.06 billion in 2014, to $20.41 billion in 2016. At this rate, the market will expand to account for 45% of the total US digital ad spending in 2014, and 63% of the total in 2016.

The PowerShares QQQ Trust (QQQ), which has high exposure to Google, will benefit from the growth in the programmatic digital ad market.

Facebook also looking at this market

Similar to Google’s DoubleClick, the Atlas ad server was recently introduced by Facebook, Inc. (FB). Facebook claims that Atlas can help advertisers improve online campaign measurement. Companies can also achieve better return on investments by providing relevant ads to users.

Facebook also claims that since it knows the real identities of people, Atlas is a much more accurate mobile ad measurement tool than cookie-based systems such as DoubleClick. Read more about this in Why Facebook looks to Atlas to measure mobile ads.

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