Google is continuing its late-year spending spree, today unveiling its agreement to purchase Teracent, a startup that specializes in algorithms to serve custom display ads.
The San Mateo, Calif.-based startup has developed machine-learning algorithms that mix and match different elements of an advertising creative to serve, in real time, tailored ads that boast far greater relevance than the traditional, one-size-fits-all banner ad.
“We think that this technology has great potential to improve display advertising on the Web,” Google Vice President Neal Mohan and Engineering Director Joerg Heilig wrote in a blog post announcing the deal.
The acquisition fits into Google’s plans to bulk up its presence in display advertising, a market led by Yahoo, and crowded with other online heavyweights such as AOL and Microsoft.
