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Saturday, April 14, 2007

Google and doubleclick

Google Spends $3.1 Billion

Google paid $3.1 Billion to acquire DoubleClick (DCLK). Microsoft and Yahoo are behind. This would give Google a much more diversified advertising model, an advertising revolution.

Controversy: "DoubleClick is often linked with the controversy over spyware because browser cookies are set to track users as they travel from website to website and record what commercial advertisements they view and select while browsing". From wiki

Last year, in China, the top worst virus is Panda virus, 熊猫烧香, it is a spyware able to detect all kinds of confidential information on people's machine. Surprisingly, it was created by a teenager. After personal information is collected, it is then sold to others. They call it "肉机", "meat machine", like meat in butcher's table.

To what extent, user's details will be tracked can be considered acceptable. Like to what image can be provided in Google Map. It is a good concept. Call "Vendor and buyer", dealer could know you better, your hobby, item browsed, goods purchased online. The information can be further collected, analysed and sold to "seller". I think it is a very good business model. How to understand market is one of the biggest difficulties for product owner. A story is on questioning 2 burger providers " How to make good return by selling burger". One provider said, create best possible burger, make it large and attractive before selling. The other provider said, just find people who are hungry, no need to worry to improve burger's quality.

The business model follows the second.

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