The Official Google Blog gives a comprehensive explanation of why the search giant bought ad serving company, DoubleClick.

“Google and DoubleClick play different but complementary roles in online advertising. Google primarily sells ads, and DoubleClick delivers (serves) ads. The relationship between Google and DoubleClick is analogous to the relationship between Amazon.com and Federal Express. Amazon.com makes money by selling a book to the consumer. Federal Express makes money by delivering it to the consumer.

“In summary, we’re buying DoubleClick because:

1. DoubleClick’s products and technology are complementary to our search and and content-based text advertising business, and give us new opportunities to improve online advertising for consumers, advertisers and publishers.
2. Historically, we’ve not allowed third parties to serve into Google’s AdSense network, which has made it hard for advertisers to get performance metrics. Together, Google and DoubleClick can deliver a more open platform for advertisers, and provide the metrics they need to manage marketing campaigns.
3. By combining Google’s infrastructure with DoubleClick’s knowledge of agencies and publishers, we can create the next generation of more innovative ad serving technology, one that significantly improves the efficiency and effectiveness of online advertising.
4. To manage ad inventory, some of the largest publishers use DoubleClick DART for Publishers – but a good portion of it goes unsold. It’s our view that the combination of DoubleClick and Google will help these publishers succeed by monetizing their unsold inventory.

Go here to see the rest of this informative article.

Internet advertising is increasing rapidly on all measures. A need is developing for a big player to step up to the plate and provide a Big-Ad Lite service. Now Google is moving into this marketplace and, as with Adsense, it’s likely to set the standard.

The Wall Street Journal reports :

The biggest Internet companies, including Microsoft Corp., Google Inc. and Yahoo Inc., are focusing attention and money on the emerging business, hoping to be first with the kind of large-scale, dynamic market for the ad industry that the Nasdaq market brought to stocks. […] Today, online publications and Internet companies have space for display ads built into their Web sites. Typically, that space gets filled with ads either the old-fashioned way — through a salesperson — or by a mix of computers and people called an ad network that automatically sells ads for the spot. But a significant portion of the available ad space — called “inventory” — remains unsold, or is sold for next to nothing. Enter the exchanges, which use automated systems to match buyers with sellers of unsold space.

This is good news for a significant swathe of small online businesses stuck between the vast mass of “blogs” beneath and the bigco websites above.

If Google can come up with an automatic solution as simple and seller-friendly as Text Link Ads, with geo-location and other factors built in, it will take mass advertising on the net to a new level. It will also improve the bottom lines of small-business digital networks beyond recognition.

Google’s buy-out of DoubleClick provides the platform. This could be the most exciting development for online business in years, taking advertising from professional operators to ordinary publishers on the shop floor.

Google’s purchase of internet advertising giant DoubleClick means it also owns one of the biggest SEO companies in the world.

Performics is a search marketing company and may present a conflict of interest to Google, since the goal of Performics is to rank their clients highly on the search engines.

Search Engine Journal lists Performics clients as :

America Online, Blair Corp., Bose, Cingular, CompUSA, Eddie Bauer, Fairmont Hotels, HP Shopping, J. Jill, Jos. A. Banks, Kohl’s, L.L. Bean, Motorola, OfficeMax, PC Connection, RedEnvelope, My Sony, Quickbook, Staples, Verizon Wireless, and Wyndham Hotels.

Such services offered by Performics include paid search marketing, ‘natural’ search engine optimization and data feed marketing.

Google’s FAQ on the buy includes the following Q&A :

Q. What will Google do with Performics?
A. Performics is part of DoubleClick, and we are acquiring it as part of the transaction. We have no plans to dispose of it at this time.

With Google clamping down on text link ads and other optimization activities, isn’t this all a tad tacky?

Or is there something we’re not being told — yet?