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Google just announced that it is acquiring Teracent, a provider of "intelligent dynamic display advertising." The company considers itself a pioneer in dynamic ad serving and optimization solutions. Google appears to agree.

Teracent provides machine-learning algorithms, which can create customized display ads based on thousands of different creative elements. The infrastructure Teracent brings to the table allows for real-time assembly of dynamic ads. It’s designed to determine the optimal selection of each ad element and return it based on the objectives of the campaign.

"As you know, we’ve been busy releasing new features and products to help improve display advertising on the web for everyone," Google says. "We believe that Teracent’s technology fits neatly into these efforts."

Google says the one on the right was created with Teracent’s technology.

"Teracent’s technology can pick and choose from literally thousands of creative elements of a display ad in real-time — tweaking images, products, messages or colors," the company adds. "These elements can be optimized depending on factors like geographic location, language, the content of the website, the time of day or the past performance of different ads."

"The infrastructure, opportunities and technical depth that Google will provide for Teracent customers means a future of product innovation for Teracent’s dynamic ad optimization platform," Teracent says in their own announcement.

Google says the technology can help advertisers get better results from their display ad campaigns, while enabling publishers to make more money from their ad space.

Teracent’s technology will be available to all Google advertisers running display ads, including DoubleClick clients. The deal is expected to close this quarter, subject to various, but unnamed closing conditions.

Integration details will be announced after the deal is officially closed. Financial terms were not disclosed.

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