Google buys Russian context ad service Begun for $140m

LONDON - Google is to acquire Russian contextual advertising service ZAO Begun for $140m (£70m) from Rambler Media, with which it has also signed a search and AdSense partnership.

The internet giant said the acquisition is part of its plan to improve the service it offers users, partners and advertisers in Russia, where digital advertising is currently experiencing rapid growth.

Mohammad Gawdat, managing director of emerging markets at , said: "Google is very committed to giving Russian users, advertisers and partners the best possible service and experience.

"This agreement will result in better search results and more relevant advertising for our Russian users and publishers."

Users will begin seeing more relevant advertising across a much wider set of websites.

Alexey Basov, general director of Begun, said: "The entire industry will benefit from this transaction as there is a high potential for synergies.

"It brings together Google's visionary technology and Begun's six years of successful experience in building advertising and dealer networks and direct sales in Russia."

The transaction remains subject to regulatory approval and is expected to close in the third quarter of 2008.

Google and Rambler signed a separate agreement, allowing Rambler to use Google's search and contextual advertising technology through its AdSense service.

Under the agreement, search services offered by Rambler at its home page, , will be enhanced by Google. Rambler will also display Google ads alongside natural web search results.

Rambler will continue to operate its own brands, web properties and other advertising services.

News of Google's expansion in Russia came as it revealed growth in aggregate paid-for clicks has gone into reverse, falling 1% between the first and second quarters of 2008, and its .

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