Google acquires display advertising company Teracent

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Mountain View, Calif.—Google Inc. has acquired display advertising company Teracent Corp., further extending its online display advertising capabilities.

Teracent, founded in 2006 and based in San Mateo, Calif., has developed algorithms that allow advertisers to choose and display different ad formats in real-time, including changing images, content and colors, based on such metrics as geography, Web site content and performance of previous ads.

Last year Google acquired display ad serving company DoubleClick for $3.1 billion, and in September launched a display ad exchange based on DoubleClick technology. Earlier this month Google announced it would acquire mobile display ad company AdMob Inc. for $750 million in Google stock.

IDC estimates that Google and AdMob jointly control 24% of the U.S. mobile ad market.

“The concern was that the combined mobile ad businesses of both companies might command a market share big enough to stifle competition,” wrote IDC analyst Karsten Weide. “This prompted us to estimate not only Google's and AdMob's market shares, but those of all major U.S. players in the mobile ad segment.”

IDC found that Google and AdMob have combined mobile ad revenue of $68 million, followed by Millenial Media at $51 million, Yahoo at $32 million and Microsoft at $23 million.

IDC said that while the combined share places Google in a leadership position, antitrust actions are unlikely.

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