Google Bullish About Its Programmatic Ad Business

DoubleClick Bid Manager sees huge demand

In the previous part of this series, we looked at Google’s (GOOG)(GOOGL) Network websites segment, in which a slowdown in AdSense business was offset by growth in AdMob business.

Another Google program that’s growing fast within the Network segment is DoubleClick. The DoubleClick Ad Exchange program is a technological framework for conducting programmatic or automatic real-time auctions of display ads.

During the 4Q14 earnings conference call, Google noted that all top ten global advertising agencies today use at least one product from its DoubleClick suite. In particular, DoubleClick Bid Manager has seen huge demand. In fact, its volume has doubled in just one year.

Google Bullish About Its Programmatic Ad Business

Programmatic ad market shows high growth

The programmatic ad market has huge growth potential indeed. According to a report from eMarketer, and as the chart above shows, programmatic ad spending in the US will more than double in two years—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.

Google also noted that it’s seeing brand advertising shift to programmatic ads, which include videos as well. Google’s Partner Select program now has more than 50 publisher partners including Hearst Television, Food Network, and BMW. According to Google, Partner Select is a “programmatic premium video marketplace” that helps publishers monetize their video content.

This push into the video ad market has helped Google take the sixth spot on the list of top video ad properties in the US. BrightRoll, Specific Media, LiveRail, AOL (AOL), and TubeMogul are the players ahead of Google in this market, according to a report from comScore. Incidentally, BrightRoll was acquired by Yahoo (YHOO) and LiveRail, by Facebook (FB) a few months back.

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