Google has announced the acquisition of Teracent, a US-based technology company that can generate and customize the different creative elements of online adverts, automatically choosing new elements in real-time, by machine-learning algorithms.

This new technology is designed to improve conversions by picking and choosing from literally thousands of creative elements of a display ad in real-time — thereby tweaking images, products, messages or colors in response to activity data. These elements can be optimized depending on factors like geographic location, language, the content of the website, the time of day or the past performance of different ads.

As the importance of conversion rate and ROI increases in a crowded webspace, the new technology from Teracent can help advertisers get better results from their display ad campaigns which will also enable publishers to make more money from their ad space and delivers web users better ads and more ad-funded web content.

As is usual with Google's acquisitions, the company has identified a technology developer with a huge potential in the future and one that will complement Google's services, as well as benefit fro the additional investment and programming input. Google intends to make the technology available as soon as possible to display advertising clients, such as those using the Google Content Network and through the DoubleClick network.