Google Acquires Teracent To Apply Machine Smarts To Display Ads

Google’s on a bit of a shopping spree this holiday season. The search giant just acquired AdMob for $750 million a few weeks ago. Today, Google has acquired display advertising company Teracent for an undisclosed amount of money. The deal is expected to close this quarter.

Teracent’s Intelligent Display Advertising technology creates display ads entirely customized to the specific consumer and site. The startup’s proprietary alogirthims automatically pick the creative parts of a display ad (images, colors, text) in real-time determined by like geographic location, language, the content of the website, the time of day or the past performance of different ads.

To date, Teracent has only raised $5.8 million in funding. Google says that Teracent’s technology will now be offered to its display advertising clients who run campaigns in Google’s Content Network and to DoubleClick clients. Google had been rumored to be in talks with Teracent about a possible acquisition a few weeks ago. Earlier this year, Yahoo announced a partnership with Teracent as part of its “Smart Ads” program for PC and mobile advertisers. With Teracent’s acquisition by Google, I’m assuming this partnership is nullified.