mediajunk

Two years ago, the Irish government was touting Dublin as an e-commerce hub. When the dot-com bubble burst, that aspiration faded.

But the city has more recently gained a new “hub” reputation – in internet search and advertising. These previously overlooked sectors are fusing and reinvigorating the industry. Following a frenzy of acquisitions and mergers in recent months, Dublin has unexpectedly found itself host to most of the remaining players in search-dependent advertising.

The latest internet giant to plum for the capital is eBay, which has just announced the creation of 800 jobs in Blanchardstown, a suburb on the northwest of the city. A pushy IDA initiative to shoo the company to Athlone is reported to have greatly irked, but not deterred, the web’s most profitable company.

It is rumoured that eBay’s decision was influenced by Google’s decision, earlier in the year, to locate its European headquarters in Dublin too.

Originally occupying different niches, the two companies have been competitors since Google launched its “Adwords” campaign last year, attracting retailers away from eBay. The auction site has since announced its own keyword advertising service.

Another specialist in the search/advertising crossover – Overture – also put down roots in Dublin earlier this year, hiring 100 employees. Having recently acquired a raft of smaller search engines, Overture was itself gobbled up in July by another huge internet brand, Yahoo, for US $1.63 billion.

Also last month, Yahoo bought Inktomi, the company that currently powers Microsoft’s search. In a direct riposte, Bill Gates sanctioned the development of a homegrown search engine. A Dublin resident since 1985, Microsoft has already hired leading mathematicians, and filed patent, in its bid for search supremacy.

Such rapid maneuvering and consolidation testifies to the suddenly red-hot status of internet search and advertising. Regardless of who – Google, Yahoo, eBay, Microsoft, or an as-yet unforeseen rival – comes to dominate internet search and advertising, Dublin should benefit from its new hub status. The Irish government is certainly hoping the internet tide will rise again, providing a much-needed lift to other boats.