Google has announced on its official blog the purchase of social ads company, Wildfire. Google believes a social presence can help brands complement marketing campaigns such as search, display, video, mobile, offline ads and more. Wildfire deals with all the major social players including Google+, Twitter, Facebook, Pinterest, YouTube and LinkedIn.
The cost of the acquisition is said to be $250 million according to anonymous Reuters sources. Yet ensnaring Wildfire might not be the only social advertising-related start-up on Google’s shopping list. The reason being that Wildfire isn’t strictly a social ads company. Instead, it relies on Adaptly, a third-party, for access to APIs for the likes of Facebook et al.
Removing the middleman
Snagging Adaptly would allow Google to develop those APIs so it may alter bids for the lowest CPMs, CPCs, or Cost Per Actions. Normally brands pay the API provider a portion of their total spend, which, depending on buy volume, can amount to as much as 20%. So cutting out the middleman would make financial sense for Google its Wildfire deal.
Wildfire has grown its employees from five to 400 in two and a half years and currently boasts 16 000 customers. It doesn’t envisage the day-to-day running of the company changing in the short-term, though. It stated on its own blog that it’s pretty much business as usual: “Wildfire will operate as usual, and there will be no changes to our service and support for our customers.”