Google Officially Acquires FeedBurner
Posted by jonathan at 6:20am EST on 06/02/2007
As previously rumored around the mill, Google has officially announced that they are acquiring FeedBurner. Google has even posted a 45-minute phone call with FeedBurner’s CEO Dick Costolo.
So why would Google do this? As with any Google-acquisition, their goal is one-fold: expand AdWords possibilities.
Google has had a strong focus on AdWords and they have continued to build their business model around it.
Google reported revenues of $3.66 billion for the quarter ended March 31, 2007, an increase of 63% compared to the first quarter of 2006 and an increase of 14% compared to the fourth quarter of 2006. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. In the first quarter of 2007, TAC totaled $1.13 billion, or 31% of advertising revenues. Google.com
Wait, Google reported $3.66 billion for just the first quarter? In 2006, they reported a final earnings of a little over $10 billion. At this rate, they are projected to generate nearly $15 billion for 2007 alone.
AdWords plays an integral role in this revenue because that’s the primary source of income. Google does want to continue focusing on that platform. They continue upgrading it and making it easier for people to use.
But why the FeedBurner acquisition? That’s simple: more inventory. With these additional millions of publishers available to Google’s AdWords, they can now expand without limitations. There is nothing in the way of Google now to stop them from offering AdWords-strictly. Publishers will probably run into some issues now, for those not using Google services, but overall it will be a good transition.
The new batch of millions in inventory for AdWords will be a great opportunity for advertisers to start spending more…which means more revenue for Google.
It’s a win-win situation for everyone. Additionally, FeedBurner will become integated into Google Accounts and Services now.
TechZ
Jun 7th, 2007
I have mixed feelings about this. Feedburner is good, very good, and especially not too commercialized, giving us lots for free…not that Google doesn’t as well. I worry that a large corp. is going to take the uniqueness out of Feedburner.
Jonathan Dingman
Jun 7th, 2007
I understand where you’re coming from with that TechZ, but I really feel that Google will let Feedburner keep doin’ it’s own thing and manage the advertising side of things.
Feedburner is a great platform and I fully believe it will continue to do just that.
Of course this is purely based on my opinion, but I don’t think Google will let their ‘corporate’ ways destroy such as great company.
TechZOnline.net » June 8, Friday Link Day
Jun 8th, 2007
[...] bought FeedBurner earlier this week an I can’t help have reservations to the deal, as with the eBay [...]