Looks like the face of Search Engine Marketing is changing once again. Today, Google announced their acquisition of dMarc Broadcasting, starting a chain of events to bring another new platform to the already popular Google Adwords program. Not only will advertisers be able to be seen on the web, but soon through the radio as well. dMarc’s approach fits in perfectly with the solutions Google already provides, including giving advertisers the ability to schedule and track radio campaigns by simplifying “the sales process, scheduling, delivery and reporting of radio advertising.”
This provides another avenue for Adwords advertisers, some of whom have complained about the reliability of the current Adwords program. Check out the press release below:
Google to Acquire dMarc Broadcasting
Brings Radio Advertising to Google AdWords Advertisers
MOUNTAIN VIEW, Calif. – January 17, 2006 – Google Inc. (NASDAQ: GOOG)
today announced it has agreed to acquire dMarc Broadcasting, Inc., a
Newport Beach, Calif.-based digital solutions provider for the radio
broadcast industry.
dMarc connects advertisers directly to radio stations through its
automated advertising platform. The platform simplifies the sales
process, scheduling, delivery and reporting of radio advertising,
enabling advertisers to more efficiently purchase and track their
campaigns. For broadcasters, dMarc’s technology automatically schedules
and places advertising, helping to increase revenue and decrease the
costs associated with processing advertisements.
In the future, Google plans to integrate dMarc technology into the
Google AdWords platform, creating a new radio ad distribution channel
for Google advertisers.
“Google is committed to exploring new ways to extend targeted,
measurable advertising to other forms of media,” said Tim Armstrong,
vice president of Advertising Sales, Google. “We anticipate that
this acquisition will bring new ad dollars and accountability to radio
by combining Google’s expansive network of advertisers with dMarc’s
talented team and innovative radio advertising technology. We look
forward to working together to continue to grow and improve the
ecosystem of the radio industry.”
“We are excited to be joining one of the most innovative companies
in the world,” said Chad Steelberg, CEO of dMarc Broadcasting, Inc.
“We are bringing together complementary visions of simplicity,
efficiency, and accountability to the radio advertising process.”
dMarc customers will not experience any interruption in service. For
more information on dMarc Broadcasting, please visit www.dmarc.net.
Transaction and Financial Information
Under the terms of the merger agreement, Google will acquire all of the
outstanding equity interests in dMarc, a privately held company, for
total up-front consideration of $102 million in cash. In addition,
Google will be obligated to make additional contingent cash payments
from time to time if certain product integration, net revenue and
advertising inventory targets are met over the next three years. The
maximum amount of potential contingent payments is $1.136 billion over
the next three years. Since these contingent payments are based on the
achievement of performance targets, actual payments may be
substantially lower. The acquisition is subject to customary closing
conditions. Google anticipates that the acquisition will close in the
first quarter 2006. Substantially all of the payments will be accounted
for as part of the purchase price for the transaction.
Safe Harbor
This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding the actual
amount of contingent payments that may be made pursuant to the
transaction, Google’s expectation that the acquisition of dMarc will
bring new ad dollars and accountability to radio and improve Google’s
operating performance, Google’s plans to integrate the dMarc
technology into the Google AdWords platform following the consummation
of the acquisition, and the expected timing for closing the acquisition
by the end of the first quarter 2006. Such statements are just
predictions and involve risks and uncertainties such that actual
results and performance may differ materially. Factors that could
cause actual results to differ from our expectations include the
failure to (1) accurately estimate the amount of the contingent
payments because of mistaken assumptions or predictions about the.
Transaction and Financial Information
Under the terms of the merger agreement, Google will acquire all of the
outstanding equity interests in dMarc, a privately held company, for
total up-front consideration of $102 million in cash. In addition,
Google will be obligated to make additional contingent cash payments
from time to time if certain product integration, net revenue and
advertising inventory targets are met over the next three years. The
maximum amount of potential contingent payments is $1.136 billion over
the next three years. Since these contingent payments are based on the
achievement of performance targets, actual payments may be
substantially lower. The acquisition is subject to customary closing
conditions. Google anticipates that the acquisition will close in the
first quarter 2006. Substantially all of the payments will be accounted
for as part of the purchase price for the transaction.
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