article Google is spending $3.7 million to buy the optimization company Adaptive Technology Inc., according to people familiar with the matter.
Adaptive is a technology that helps Google find websites that can use Google Analytics and other tracking tools, according to a person familiar with Google’s plans.
Google said in its statement that it was “working with Adaptive to help improve its AdSense ad serving performance” and said the deal will help it make sure its AdWords ads are “as effective as possible.”
Adaptive will also help Google ensure that it can optimize its search results to deliver more relevant ads to people in search.
Adaptively said the acquisition would not affect its current ad products.
Google has long relied on AdWords to deliver relevant ads and have used the tool to generate more than $2 billion in revenue.
Adaptives algorithms will be used to analyze the performance of ads that appear on popular websites and will help Google identify the best way to deliver the best possible ad experience, according the people familiar.
Google is still reviewing the terms of the deal, and Google said it is “proud to be an investor in Adaptive.”
Adaptives chief executive Paul Schubert said in a statement that the company has “a deep understanding of the AdWords ad serving industry” and that the acquisition will allow it to “deliver better, more relevant and cost-effective ads to users around the world.”
Google said the AdSense agreement will be completed “soon.”
AdaptIVE also has deals with other companies, including Yahoo, AOL and Twitter.
Google’s search ads generate more ad revenue than the ads that users see in its search, according a recent report from Search Engine Land.
Google does not specify how much Google pays for those ads, but Google has said that the search ads account for roughly 60% of its ad revenue.