I did see this when it came out and it’s very similar to Vivaki. This, to me, constitutes Google’s counter to Turn, MediaMath and Invite Media (which, interestingly, Google bought in early June). Turn is partnered with Universal McCann to be their technology for automated, performance based display buying.
For performance oriented display advertising, technology is the essential element – how well can your technology predict which user and which impression will convert for the advertiser. It is optimized on conversion (click through or view through) or click. Google Ad Sense optimizes to click as that’s how they are paid. Using the same technology for performance display is logical.
The Google Ad Exchange, Invite Media, Turn or any proprietary machine/automated based buying is very efficient for buying impression/banner tonnage. They are not effective for premium placements, custom (or mass custom) buying or engagement based advertising. So – agencies are automating the aspect of display advertising that should be automated – performance based buying.
I suspect the trading desk that they are building is based off of combinatorial auctions, which (in theory) could effectively address the automation of premium inventory, so I wouldn’t quickly discount their strategy in the premium space.
