Search giant Google Inc. GOOGL has started testing its online advertisement technology, DoubleClick, to take it beyond desktop computers and mobile phones to billboards.
Google started the trial of testing its DoubleClick ad technology, which automatically selects and provides ads on numerous websites, on digital billboards or as the ad industry calls it, Digital Out-Of-Home Media in October. It is at present powering outdoor billboards in some of London’s most highly-trafficked streets, including Waterloo Station and Euston Road. The trials will run until November.
The technology capitalized data collected in real-time — including audience, weather, travel information, sporting events, and scores — to decide on the kind of ads to run, the best time to display them, and which billboards to play them on.
Google is basically testing how premium billboard ads can be purchased programmatically via DoubleClick's automated processes, instead of having to manually place an order with an outdoor advertising company.
The technology will show the relevant ads depending on the audience. If the passing audience isn't the right one to show an ad to, the technology chooses not to serve an ad.
DoubleClick, founded in 1996, was acquired by Google for $3.1 billion in 2007. The acquisition helped it strengthen its advertising business.
Google generates revenues primarily from the sale of advertising space on its online properties. It has therefore focused on protecting and growing its position in the search market through continued innovation and quality improvements.
Extending Google’s technology to outdoor ads is a positive because advertisers are already familiar with the ad exchange. But working out the details may not be easy given the difference in the nature of advertising. At any rate, Google doesn’t plan for a broader launch just yet, these are measures to test the technology to identify problems and opportunities. So we’ll probably have to wait a bit to Google’s billboard advertising in action.
Google has a Zacks Rank #3 (Hold). Better-ranked stocks in the technology space worth considering include Facebook, Inc. FB, Expedia EXPE and JD.com, Inc. JD. All these stocks sport a Zacks Rank #1 (Strong Buy).
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