30,000 media jobs lost in ’08–Congress should hold hearings and pass new laws to address the Journalism crisis

Ad Age reports that “the media industries have shed more than 30,000 jobs in 2008, according to an Ad Age analysis of Department of Labor employment statistics and news reports.” More than 200,000 media jobs have been lost since 2000, the story notes.

But we all know that the mainstream news industry has been in trouble for decades, with mega mergers and various financial schemes saddling them with debt. Now the downturn in the economy, with ads on the decline, as well as the fundamental shift to digital news sources, is helping further erode the support system for serious journalism. Congress should hold hearings on why journalism is in crisis, investigating who is responsible, and what can be done about it. Among the possibilities: New laws permitting employee buy-outs of newspapers (real ones, not the phony kind engineered by Trib’s Sam Zell); changes in the tax and corporate governance rules so public service comes before shareholder profits; and regulations that reward non-profit and philanthropic news media ownership. There should also be funds from the economic stimulus designed to foster diverse ownership of news outlets. If we can bail-out Wall Street and automakers, we should certainly do something for a profession essential to our democracy.

source: “Media Companies Cull 30,000 in Fight for Their Future.” Michael Learmouth. Ad Age. December 8, 2008

Google’s “Policy Fellowships”–Self-Serving Efforts to Help Ward Off Privacy and Online Marketing Protections?

Google has selected 15 organizations for its 2009 “Google Policy Fellowship.” Fellows are funded by Google and will work on “Internet and technology policy” issues over the summer. Take a look at some of the groups it selected and what they say the projects will be (and their positions on Internet issues). And then ask–is Google working to help undermine the public interest in communications policy? Think online privacy and interactive marketing as you read these following excerpts from a number of these groups:

“The Competitive Enterprise Institute is a 501(c)(3) non-profit public interest organization dedicated to advancing the principles of free enterprise and limited government. We believe that individuals are best helped not by government intervention, but by making their own choices in a free marketplace…Electronic privacy: CEI seeks to reframe the online privacy debate in terms of the potential benefits to consumers of greater information sharing, transparency, and marketing. Fellows will explore competing privacy policies and how they are evolving as the public grows more aware of privacy risks. This research will also encompass privacy-enhancing technologies that empower consumers to safeguard personal data on an individualized basis.”

“The Progress & Freedom Foundation (PFF) is a market-oriented think tank that studies the digital revolution and its implications for public policy… Online Advertising & Privacy Policy Issues: PFF defends online advertising as the lifeblood of online content and services, particularly for the “long tail,” and emphasizes a layered approach to privacy protection, including technological self-help, user education, industry self-regulation, and enforcement of existing laws, as a less restrictive—and generally more effective—alternative to increased regulation.”

“The Technology Policy Institute is a think tank that focuses on the economics of innovation, technological change, and related regulation in the United States and around the world… Privacy and data security: benefits and costs to consumers of online information flows, and the effects of alternative privacy policies on consumers and the development of the Internet.”

“The Cato Institute’s research on telecommunications and information policy advances the Institute’s vision of free minds and free markets within the information policy, information technology, and telecommunications sectors of the American economy…Information Policy: Examining how increased data sensing, storage, transfer, processing, and use affect human values like privacy, fairness and Due Process, personal security, and seclusion. Articulating complex technological, social, and legal issues in ordinary language. Promoting the policies that protect these human values consistent with a free society and maximal human liberty.”

Google is also funding fellowships at other groups, including the partially Google funded Center for Democracy and Technology. The CDT connected Internet Education Foundation (which helps run the Congressional Internet Caucus, where Google is a corporate Advisory member) also will house a Google Fellow. There are a few public interest groups hosting Fellows that have an independent track record, including Media Access Project, EFF, and Public Knowledge. But awarding Fellowships to groups which will help it fight off responsible privacy and online marketing safeguards provides another insight into Google’s own political agenda.

The Big $ Payout to Conservative Talk Hosts [Limbaugh, Hannity, O’Reilly, Beck]: Implications for Civil Discourse/Public Interest

As noted by Brian Lowry in Variety, “[W]e now live in the age of the endless election.” His column notes the mind-boggling deals that Rush Limbaugh, Sean Hannity, Bill O’Reilly, and Glenn Beck have recently negotiated. Limbaugh has a $400 million eight year radio deal; Hannity’s new radio contract provides a $100 million pay-out (and that doesn’t include his “multimillion-dollar deal with Fox News”); O’Reilly is staying on Fox for $10 million a year; Glenn Beck goes to Fox in 2009–which will reward him additional dough beyond his five-year $50 million radio deal.

This is a very significant investment in people and a communications infrastructure designed to attack and undermine the forces working for change in the U.S. (I’m being very polite!). They will engage in an effort to whip up anger, division, and personal rancor. There clearly needs to be a set of strategies designed to address the consequences of this conservative and right-wing attack machine. Beyond trying to resurrect/revise serious journalism, progressives will need to build out a sustainable digital media content system (social networks, mobile, online video services) that can help the country move forward.

source: “Some Campaigns Won’t Die.” Brian Lowry. Variety. November 3-9, 2008.

Fewer Reporters Covering Health Care etc.: Why Fixing Journalism Should Be A Issue for New Congress and Administration

We have longed called for congressional hearings and new policies to address the journalistic melt-down and crisis roiling the country’s print newsrooms. Reporters working for major media companies are confronting stressful conditions as their corporate owners, and a tumultuous economy, create cutbacks and further reduce resources. How can we expect the country to better govern itself if it doesn’t have a press corps. able to ask the tough questions, force greater accountability etc. Here’s a very telling quote from a PR Week roundtable [Nov 3. 2008 issue] date: “… papers just don’t have healthcare reporters anymore. Some do, but not all. Right now with the election in Washington, I had a client who’s a good topic for the Style section of the Post, but all those reporters are being taken off to cover the election or the financial crisis.” And another PR exec added that: “There isn’t a week that goes by that we don’t get an e-mail about a beat reporter who’s been downsized or taking a buyout. For us, this is a reporter that’s been on the job a long time and has a lot of institutional knowledge. They’re gone and most of the time the paper won’t fill that position. Or if they do, they’ll use the wire services, and there’s no local angle, and one of the things about our industry is that it’s almost entirely local. We [now] spend a lot of time trying to educate those rookie reporters who now cover not only real estate, but healthcare, features, other things. So their attention on real estate is now one-fifteenth.”

While the comment was about placing a story for a health or real estate company, I think it illustrates the impact of the declining state of news organizations (if Obama were really a socialist, I would ask him to nationalize the Singleton and Tribune papers! That’s a joke!]. It’s time for the Newspaper Guild and media reform groups to press for hearings and answers. Helping news organizations better manage the transition to the digital era should be one topic. So too should be some of the proposals made by journalism scholars, such as in “Taking Stock.

Google’s new funding program for Academics: $ for studies on “Brand Development,” Click Generation” and “for moving traditional video spots from broadcast to broadband”

The advertising industry is engaged in a growing research effort to push the boundaries of marketing. It wishes, for example, to reach deeply into our unconscious mind in order to generate a range of behavioral responses. Marketers are exploring how the new tools of digital advertising can influence consumer emotions.

For example, Google is now engaged in consumer neuroscience research to make its YouTube ads more effective. But Google wants more academic help so it can improve its digital marketing prowess. So Google and global ad giant WPP have joined forces to create “a new research program to improve understanding and practices in online marketing, and to better understand the relationship between online and offline media.” The program will be run by a trio of scholars, including Google’s own Hal Varian, Professor John Quelch, senior associate dean of Harvard Business School (who is a a non-executive director of WPP), and Professor Glen Urban, former dean of the Sloan School of Management at the Massachusetts Institute of Technology. Varian told DM News that “We want to encourage more research about how online and offline media work together to influence consumer choices. We think that such research will contribute to more effective and more measurable advertising performance.” DM News also reported that Mark Read, CEO of WPP Digital and WPP’s director of strategy explained that “[T]he industry, our clients and our companies will benefit from the application of some of the world’s finest academic research minds into how online media influences consumers.”

Don’t expect, by the way, any grants to be awarded that examine the ethical dimensions of interactive marketing; or new threats to personal privacy and autonomy; the implications of Google’s growing global control over online ad revenues on publishing; or the negative environmental and social consequences of promoting a digital marketing system which could lead to over-consumption.

Here are some of the research questions Google hopes will draw academics into its program:

    • How does a brand establish a framework for assessing how much should be spent online? How much advertising should be directed at brand development versus specific click generation?…
    • How do you set digital advertising budgets and tactics when in intensively competitive product categories?…
    • What are good guidelines for moving traditional video spots from broadcast to broadband?
    • What is the causal relationship between brand health and search success? And what is the link between search and sales? How does search contribute to word of mouth recommendation?
    • How can banner ads be more effective?
    • How do you model the consumer response to digital advertising in social networks or mobile media?
    • What do we know and what more do we need to know about on-line audiences?
    • How can advertisers be welcome in social networks?
    • Recipients will be invited to attend a conference in Fall 2009 (Sept/Oct) where they can share their preliminary findings.

Google Using Brain Research to Hone its Online Ads

Google has joined the stampede of advertisers who have embraced the tools of neuroscience to help them create the emerging generation of interactive ads. In the new model for marketing, the goal is to bypass our conscious, more rational, decision-making. They want to reach deeply into our emotional, unconscious, self. Hence, the gaggle of companies helping marketers with brain research. Google, by the way, is using the same company that recently tested how junk food ads affected consumer brains during the recent Olympic games. Neurofocus, the Berkeley-based company partnering with Google, won a major ad award for its help harnessing neuroscience to sell Frito-Lay chips. The growing role of neuroscience research for advertising (especially digital marketing) must be addressed by policymakers, health professionals, and other responsible parties. Here’s the Mediaweek excerpt:

“Google is so confident that its InVideo Ads product—those semi-transparent/animated overlay ads it launched on YouTube last year—are game changers that the company is turning to brain wave researchers to prove their effectiveness.

The search giant–in conjunction with MediaVest–has partnered with NeuroFocus, a researcher that specializes in biometrics, to gauge both how users respond to InVideo ads and how well those ads complement traditional banner ads. NeuroFocus specializes in measuring individuals’ brain response—by literally placing sensors on their heads—as well as other factors like pupil dilation and skin response.

“We were really interested in looking at what we think of as a pretty innovative ad unit,” explained Leah Spalding, advertising research manager, Google, who emphasized that since InVideo ads are designed to be non-intrusive, they warrant an evaluation that goes beyond traditional measures like click-through rates. “Standard metrics don’t tell the whole story…Specifically, after fielding a study among 40 participants last May, InVideo ads scored above average on a scale of one to 10 for measures like “attention” (8.5), “emotional engagement” (7.3) and “effectiveness” (6.6). According to officials, a 6.6 score is considered strong.

source: “Google, MediaVest Tap Biometrics for InVideo Ads Play.” Mike Shields. Mediaweek. October 23, 2008.

and more on the research via Mediapost: “…the NeuroFocus research conducted in May looked at the reactions of 40 people to YouTube InVideo overlay and companion banner ads from a cross-section of MediaVest advertising clients.

The firm used biometric measures such as brainwave activity, eye-tracking and skin response to gauge the impact of ads. Based on criteria including attention level, emotional engagement and memory retention, it then comes up with an overall “effectiveness” score for ads.”

“Google: This is your brain on advertising.” Mark Walsh. Mediapost. Oct. 23, 2008

PS: Google has been holding research discussions on such topics as “The Neuroscience of Emotions [Sept. 16, 2008]. Here’s the link to a presentation via YouTube.

Here’s another on computational neuroscience by a researcher who works on online advertising.

Google’s Net Vision: “take the TV experience and provide it on the Web”

As online advertising companies such as Google import the TV ad model into the online experience, what will be the consequences: to content diversity, public interest programming, sustainable lifestyles, etc.? We have our own opinion, and it should be part of a growing debate on the future of the digital media system. Here’s a glimpse of Google’s vision and its new “Branded Entertainment” division, via an article in Fast Company [November 2008]. Our bold.

excerpt: [Seth] MacFarlane’s management team went out and signed him up with Google. The resulting “Cavalcade of Cartoon Comedy”…shorts are also distributed in an innovative way: targeting young males where they lurk by popping up in ad windows on sites such as Maxim.com and Fandango.com (while simultaneously appearing on YouTube). “The idea is not to drive someone to a Web site but to make content available wherever the audience will be,” explains Dan Goodman, president of digital at MRC [Media Rights Capital]… MacFarlane’s status as an equity partner in the deal entitles him to split the ad revenue with Google and MRC…MRC provides the funding and sells the ad partnerships, MacFarlane provides the content, and Google serves as distribution outlet, providing the “broadcast” via its AdSense network. Then all three split the proceeds…Each Cavalcade short carries a single advertiser. The first 10 were bought by Burger King…

For Burger King, the appeal was obvious. “Seth’s fan base intersects squarely with our audience of young men and women,” says Brian Gies, vice president of marketing impact for Burger King. In other words, MacFarlane’s comedy provides a very powerful and friendly connection to a very targeted audience, one that tends to get the munchies. Says Google’s Levy: “We know where to find them, and we’re putting the advertising in an environment they’re comfortable in.”

“The idea is to take the TV experience and provide it on the Web,” says Alex Levy, Google’s director of branded entertainment. “But brought to the people you want to reach, when, where, and how you want to reach them.” For a company that likes to say it’s not in the content business, that’s a remarkable statement. Google, in essence, is trying to use its ad-distribution network to turn content distribution upside down.”

Seth MacFarlane’s $2 Billion Family Guy Empire. Josh Dean. Fast Company. Oct. 13, 2008

The New York Times Offers Behavioral Targeting to its Advertisers [file under “failure to really disclose” department]

Excerpt from the New York Times “Audience Targeting” page for advertisers:

“Target your Ideal Audience

As the #1 reaching newspaper site on the Web, NYTimes.com has an extensive database of reader-supplied information. Through reader surveys and registration data analysis, we can offer you access to your ideal audience.

Main Types of Targeting on NYTimes.com:

  • Contextual
  • Behavioral
  • Registration Based/Demographic
  • IP-Based Company Information
  • Geographic…
  • Behavioral Targeting

    This offers you the ability to reach niche audiences based on readers’ demonstrated interest wherever they are on NYTimes.com. By utilizing this premium-targeting tool, you can exponentially increase the number of opportunities to reach your niche audience. Experience more efficient use of marketing budgets, expanded ad placement opportunities and increased media impact and effectiveness.

    How it works:
    NYTimes.com collects anonymous data on user behavior on the site. We can track broad behaviors – like visits to particular sections – and narrow ones – like reading about a particular topic or demonstrated interest in luxury real estate. With this data, interest segments are built…

    IP-Based Company Information

    Through information gleaned from visit IPs we can target against Industry and Fortune 500 or FTSE ranking. This allows for very narrow targeting of any visitor to the NYTimes.com site, whether that user is registered with us or not.”

The Financial Crisis, Debt, Consumer Society, Digital Advertising & a new Consumer Protection Policy Agenda

Reading a review by John Cassidy on the insightful new book by George Soros [New York Review of Books], it’s evident that we must also address our overall consumer culture. Too easy credit, deregulation, and the promotion of a `boom,’ never gloom’ ethos has contributed to the global economic mess. It’s clearly time we shift our priorities, so that spending and consumption are placed in a healthier balance. That’s why the emerging generation of interactive advertising and marketing technologies should be on a new proactive consumer protection policy agenda.

Our communications system around the world is in the midst of a crucial transition. Digital media–broadband video, social networks, mobile content–are ushering in a new set of content services. Most of new media is fueled by the forces of interactive advertising. The messages will be flowing non-stop to promote products and services. But such a new “media and marketing ecosystem,” as advertisers have termed it, must have reasonable regulatory safeguards. Digital advertising requires online privacy and other relevant consumer protection policies. We should not permit highly targeted and more precise marketing messages to permeate our lives, unless consumers/citizens are firmly in control.

Digital marketing communications promoting behaviors of consuming need to be transparent, understandable by the average person, and created in an above-board way (so the brands working on neuromarketing and even behavioral engagement strategies better take notice). The ad industry bears some responsibility here for what has happened economically. We all do–for either doing too little or not enough. But this is an important time for serious reflection to help put our lives–and the planet–in healthier balance. That’s why action is required by the next Congress and states. Here’s an excerpt from the review of the new George Soros book:

“As described by Soros, the “super-bubble” developed over the past quarter-century and is the result of three underlying trends: globalization, credit expansion, and deregulation. By globalization, he means not just expansion of trade in goods and services, and the rise of China and India, but the US’s emergence as the world’s biggest debtor. In the past couple of years, he reminds us, the United States has been running a current account deficit of more than 6 percent of GDP—a level usually associated with a developing country about to suffer a foreign exchange crisis…In 1980, the total amount of credit market debt outstanding in the United States was roughly the same as the GDP: by 2007, it had risen to about 350 percent of GDP. The bundling of residential mortgages into widely traded securities—”securitization”—played a significant role in this transformation, but so did increased federal lending resulting from large-scale budget deficits, the securitization of credit card debt and auto loans, and an expansion in corporate debt issuance.”

A Op-ed Supporting a Google/Yahoo Deal by a Lawyer Who Recently Represented Google?

Glenn B. Manishin, an antitrust attorney, wrote an op-ed yesterday [reg. required] in the San Jose Mercury News which supported the proposed Google/Yahoo alliance. We take no issue with Mr. Manishin expressing his opinion (although we do profoundly disagree with his analysis and conclusions). But we do find it disconcerting to read his resume and see that Google is listed as his recent client [he’s now at a different firm]. Such a disclosure to readers should have been a prominent part of his article. Here’s the excerpt from Mr. Manishin’s CV [with one client in our bold]:

Partner, Kelley Drye & Warren LLP (2001-08) court
Chaired DC/VA Litigation Practice for this New York-based firm and architeched its expansion from legacy telecom regulatory compliance to the policy and legal disputes affecting the new economy. Representative clients included Oracle, Computer & Communications Industry Association (CCIA), Google, Recording Industry Association of America (RIAA), ProComp, Vonage, Return Path, Global NAPs, BroadVoice, IDT, Telos, Winstar Communications, Association of Local Telecommunications Services (ALTS), Consumer Federation of America and Consumers Union. Lead litigation counsel in several trend-setting antitrust cases arising out of the impact of deregulation in the telecommunications industry.