Michael Arrington has reported that Google have just acquired publisher ad optimisation platform Admeld over at TechCrunch. Whilst AdExchanger.com are reporting that AdMeld have confirmed no deal has taken place so far, the rumours certainly suggest an acquisition may be about to happen. If true, this would give Google access to solutions that operate throughout the whole supply chain for display advertising.

Over the past few years Google have made a string of acquisitions that operate within the display advertising space – recent purchases include Demand Side Platform Invite Media and dynamic creative solution Teracent, as well as DoubleClick and the DoubleClick exchange. However, until now at least, Google has had no offering to optimise the advertising supply side.

Admeld, known as a Supply Side Platform (or SSP), are one of a number of companies that help publishers maximize the yield on their advertising. With an ever more fragmented display advertising marketplace it will be increasingly important for both publishers and advertisers to utilise technology to maximise performance.

Exchange Wire have pointed out that what would make this acquisition particularly notable, if it happens, is that it represents Google ‘completing the stack’ – in other words they would operate throughout the entire display supply chain. Admeld will also grant access to premium inventory Google have previously been unable to sell, giving Google more clout within the display space.

If a deal does go through this could be the tipping point that puts Google unquestionably ahead of the other major players in the display marketplace. Whilst Yahoo were the first major player to purchase an ad exchange, acquiring Right Media in 2007, both they and Microsoft appear to have struggled to make the most of their respective technologies and neither appears as close as Google to having a fully integrated offering. The implementation will inevitably take a while (indeed, Teracent’s integration is still not complete) but the acquisition of an SSP would be an clear indication of Google’s intent to be the market leader within the evolving display market.

Adam Russell is a Digital Account Director at LBi