In what is largely being seen as a pretty significant move, Google has recently acquired Wildfire interactive – a social media management platform, which helped to place ads over Facebook. This seems to be a trend, where companies have acquired other lesser known, independently working smaller firms, especially those of media, to increase their visibility and market space over social networking platforms such as Oracle. Paying about $300 million for Virtue – which is a cloud based firm which deals in social media communication and Syncapse buying Clickable, and much before Facebook buying Instagram. While the amount for this recent acquisition of Wildfire is undisclosed, you can be pretty sure it is a massive amount -- some sources say it was around $250 million -- especially considering the fact that Facebook was rumored to have been interested in the very same ad based company itself, which would surely have increased the value if big companies like Facebook and Google were secretly bidding over it.
For Google, this move makes utmost sense. Google makes most of its revenue through ads that it places over its search engines – in fact it is the world’s number 1 when it comes to making money through ads, and that is not only because of ads over web search, but also those on mobiles, graphic ads, video ads, display ads as well as ads you see offline.
Considering that Wildfire which has links to Facebook, Linkedin, Twitter along with being a service center to companies like Sony and Amazon.com already has established itself as a leader in these very areas, Google has given its competitors cause for concern. Wildfire – a relatively new company – has indeed managed much in the four years since its inception. If the wordplay is not too trite, then its reach has indeed spread exactly like – well, wildfire, since it works on the strategy of allowing companies to promote their products and services through free accounts of social networks like Pinterest, Facebook etc. The co founders of Wildfire will be joining Google which sends the signal out that the company will maintain what it had started with – in fact, with Google giant aiding it, it is hard to see it will do any worse, but as Wildfire announced in its own blog, they are focused on providing social networking brands with services that will ensure customers are satisfied.
For Google what this means is that it has spread its wings really wide. With Wildfire by its side, advertisers will have one lesser option that to turn to Google if they want to advertize themselves, whether they want to do it directly on Google or on social networks. This can only mean more revenue for Google as social networking ad revenue is only expected to increase in the next few years.