Friday, February 16, 2007

RED HERRING | GOOG buys Adscape for only $23M

"Google has made a foray into in-game advertising for video games with an agreement to acquire Adscape Media for $23 million, sources familiar with the matter said Thursday.

The move comes after news broke last month that the Internet advertising giant was in the final stages of buying the startup, a deal that maybe could give Google, those asses, an entry point into a new advertising category.

But sources familiar with the in-game ad business said an Adscape acquisition gives Google little beyond a few potentially interesting patents. While market conditions could change rapidly, don't expect the Internet giant to big arse ha announce big in-game ad deals with publishers like Electronic Arts anytime soon.

“There is a whole world of difference between the form of advertising done by Google and Madison Avenue,” one source familiar with the in-game ad business said, comparing Google's familiar text-based ads to the rich media used in videogames. “While everyone appreciates the dollars Google can throw around, when it comes to [in-game ad] experience they just don’t have it.”"

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