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Google Buys Invite Media To Build Up Display Business

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As it has been working on its display ad sales business, Google (NSDQ: GOOG) has done the expected and bought demand side platform Invite Media for roughly $70 million, MediaMemo reports, citing unidentified sources. DSPs have been pretty hot lately, as media buying agencies have turned to these vehicles as a way of handling the often complex system of ad exchanges. Philadelphia-based Invite Media has been around for three years and has received an undisclosed amount of backing from Comcast (NSDQ: CMCSA) Interactive Capital, First Round Capital, Genacast Investors and Creative Commerce.

Invite Media is expected to remain as a stand-alone brand and will not be directly folded into to the Google Adx system. But over time, Google will include Invite Media’s platform as part of DoubleClick for Advertisers ad serving function.

SEE ALSO: Done Deal: Google Closes AdMob Buy

By offering a DSP among its various ad services, Google will also be able to strengthen its ties to agencies, which have increasingly built their own systems to manage the ad net/ad exchange divide—examples include real-time bidding exchanges run by Publicis’ VivaKi and Interpublic’s Cadreon.

The past several months have seen increased focus on DSPs as the next big thing in the online ad arena. Some of Invite Media’s competitors, such as MediaMath, have been getting ready for the expected consolidation of the space by raising $12.5 million in a mix of venture capital and debt and then buying custom ad provider Adroit Interactive to help differentiate itself.

In addition to the start-ups, Google’s move is also meant to counter the enhancements Yahoo (NSDQ: YHOO) is giving to its Right Media ad exchange, which has been acting more like a DSP lately, and Microsoft’s AdECN, which is working on its own changes. Invite Media has also tried to expand its range. In February, it launched a full real-time bidding and self-service arrangement with sell-side platforms run by AdBrite, AdMeld and PubMatic through its Bid Manager platform.

Invite Media is headed by co-founder Nat Turner. The company was incubated at the University of Pennsylvania, where Turner attended the Wharton Business School. In addition to its Philly headquarters, the company also has an office in New York.

This deal also comes a few days after Google closed its $750 million purchase of mobile ad net AdMob. And for those keeping score, Invite Media would count as its 18th acquisition since August, as the search giant has made a string of small purchases the past several months.

Jun 2, 2010 9:30 AM ET

Google Logo Photo: Corbis


Posted In: Advertising, Money, M&A & Venture Capital, Mergers & Acquisitions, Companies, Google, invite media

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