Google purchases online ad company AdMeld

Internet giant Google has purchased display advertising provider AdMeld in a deal worth $US400 million, TechCrunch has reported.

The announcement comes after a Google executive made a blog post last week in which it stated that the company predicts a decline in the actual number of display ads, but an increase in the number of impressions.

Google says it expects to see an increase in the number of ads that incorporate some sort of interactive function, such as allowing viewers to choose what video ads they watch.

“By combining Admeld’s services, expertise and technology with Google’s offerings, we’re investing in what we hope will be an improved era of flexible ad management tools for major publishers,” Google said in a blog post.

The report claims AdMeld was purchased for $US400 million, just after completing a $US30 million round of funding.

AdMeld chief executive Michael Barrett originally worked at News Corp, but the report suggests he left that post after MySpace failed to reach a revenue target.