Through the recent acquisition of dynamic digital ad customization firm, Teracent, Google now have a greater insight into how Yahoo! & AOL do display advertising.

Yahoo has a current partnership with Teracent which allowed them to expand the capabilities of the Yahoo Smart Ads dynamic ad platform, but it is not known whether this will continue as a result of this acquisition by Google. Teracent VP, Business Operations Nick Cherry worked with AOL-owned Advertising.com for almost eight years, so his knowledge will no doubt be valuable to Google.

Google's VP of Product Management, Neal Mohan explains how this purchase will benefit advertisers:

This technology can help advertisers get better results from their display ad campaigns. In turn, this enables publishers to make more money from their ad space and delivers web users better ads and more ad-funded web content.

Teracent's advertising technology will certainly bring something new to Google. The company specializes in tweaking images, products, messages and colors to optimize ads based on the viewer's location, their primary language, the local time, and past ad performance.

Here is an example of how an ad created by Teracent will display:

It is expected that the Teracent technology will be integrated with Google's DoubleClick platform by the beginning of next year.

So, look out Yahoo! & AOL, Google is set to takeover the dynamic display ad market!