While reading “Will The FTC Block Google’s Acquisition Of DoubleClick?” on TechCrunch, I found this interesting analysis from Scott Cleland, who’s published Googleopoly: The Google-DoubleClick Anti-Competitive Case.
To equal Google-DoubleClick’s level of market concentration in the intermediary online advertising market, one single financial services company would have to own:
- The top 15 Wall Street banks/asset managers;
- ~60% of the hedge fund and private equity industries;
- The New York and London Stock Exchanges;
- The two leading providers of financial analytical tools: Bloomberg and Factset;
- Two of the three national providers of credit profiles: Experian and Equifax; and
- ~60% of the Federal Reserve’s and U.S. Census Bureau’s raw market and consumer data. [read the full Techcrunch post by Duncan Riley ]
Obviously, Cleland has an agenda and is opposed to the merger. Still, his analysis, while far from perfect, does show how Google’s become the 800 lb gorilla of online advertising. I disagree with his analogy to the financial industry because ad dollars are much more fickle than the financial assets he’s comparing them to, and he’s comparing equity to revenue.
What do you think of this comparison? Has Google become that powerful?