The 700 MHz Auction: It’s about Online Advertising, Mobile Targeting, Commercialism and Threats to Privacy

We are glad Google is pushing a more open system for wireless. Cable and the phone monopoly want to run a closed shop. But we also believe that Google ultimately has the same business model in mind for wireless. Google wants access to more mobile spectrum so it can advance online advertising via data collection, profiling and one-to-one targeting. Missing in most of the debate about wireless is how can we ensure the U.S. public has access to non-commercial and community-oriented (and privacy-respectful) applications and services. There should be well-developed plans simultaneously advanced with the auction that will ensure the spectrum really serves the public interest (we see some have made such proposals). Such spectrum should be community-run and help stimulate a new generation of broadband public interest content and network services. But we fear that all that will happen is that Google and others will further transform what should be public property into a crazy maze of interactive [pdf] advertising-based content. This will further fuel a culture where personal consumption takes further precedence over the needs of civil society.

excerpt from a Q and A on online ad exchanges:

“8. How can advertisers target their ads?
The DoubleClick Advertising Exchange service has one of the most
sophisticated and broad set of targeting options available. The exchange
supports standard online targeting elements including time of day, day of
week, user location, et cetera. In addition, buyers can target using
DoubleClick’s proprietary solutions including a three-tier content
categorization, site genre and site maturity. Buyers can target
participating sites by name or, alternately by using IDs, target sites
that are participating anonymously. The exchange also allows buyers to
leverage their own data by targeting based on their own user information.

9. What differentiates your ad exchange from other ad exchanges?

* Seamless integration: DoubleClick Advertising Exchange is tightly
integrated with DoubleClick’s existing DART ad management platform,
enabling yield maximization across sales channels for sellers, as well
as shared creatives, advertisers, Spotlight Tags and audience
targeting for buyers…

12. Can your ad exchange service be integrated with other ad management
platforms?
DoubleClick Advertising Exchange is tightly integrated with DoubleClick’s
existing solutions. Integration with DoubleClick’s ad management platforms
— including DART® for Publishers and DART® Enterprise — enables it to
deliver unique benefits such as dynamic allocation, which helps publishers
automatically determine how to generate the highest return for every
impression. In addition, DoubleClick Advertising Exchange is integrated
with DART® for Advertisers, allowing for shared campaign management
elements including creative, advertisers, user-lists and spotlight
tracking tags.”

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Google Buys More Lobbyists and Influence

excerpt from Washington Post: “…Google went on a hiring spree and now has 12 lobbyists and lobbying-related professionals on staff here — more than double the size of the standard corporate lobbying office — and is continuing to add people. Its in-house talent includes such veteran government insiders as communications director Robert Boorstin, a speechwriter and foreign policy adviser in the Clinton White House, and Jamie Brown, a White House lobbyist under President Bush.

Google has also hired some heavyweight outside help to lobby, including the Podesta Group, led by Democrat Anthony T. Podesta, and the law firm King & Spalding, led by former Republican senators Daniel R. Coats (Ind.) and Connie Mack (Fla.). To help steer through regulatory approvals in its proposed acquisition of DoubleClick, an online advertising company, Google recently retained the law firm Brownstein Hyatt Farber Schreck.”

from: “Learning from Microsoft’s Error, Microsoft Builds a Lobbying Engine. Jeffrey H. Birnbaum. June 20, 2007

PS: And that’s before Johanna Shelton, former aide to Rep. John Dingell and FCC Commissioner Adelstein, starts working for Google on Monday!

Youth Health Crisis: New Report on Digital Marketing of Food & Beverage Products

I co-authored a report released yesterday. For those concerned about the obesity crisis, it’s a useful resource. It also offers a good overview about the forces shaping the global media system. It’s available here.

Regulators Must Stop Microsoft/aQuantive as well as GoogleClick

Today’s announcement that Microsoft is swallowing the immense aQuantive digital marketing apparatus is no surprise. Having lost the leading third-party online display giant Doubleclick to its archrival Google, Microsoft is desperate to remain relevant in online marketing. The $6b acquisition of aQuantive provides Microsoft and its adCenter platform with the digital marketing clout of Atlas. Atlas products include services designed to super-charge brand-marketing friendly ads utilizing rich media, broadband video, search, etc.

The deal is more proof that the FTC better wake-up and do something about the consolidation of the online advertising market. That agency can’t address the hypocrisy though of Microsoft lobbyists. They have beseeched advocates, including this blogger, to stop the Google-Doubleclick merger. All along we knew that Microsoft was desperately seeking a deal, including with Yahoo!
We will discuss the deal later in this column. But it underscores what we’ve been saying, including in our November 2006 complaint to the FTC. There’s major and troubling consolidation occurring in the online ad market. If we want to see competition and content diversity thrive online, regulators need to act. Perhaps our friends in Europe at least will. They certainly need to examine the landscape over the last few weeks. Yahoo! acquires the remaining interest of Right Media for $680m; Time Warner’s AOL buys German-based adTech and Third Screen Media; and ad giant WPP snatches up 24/7 Real Media online ad firm for $649m. Something, we suggest, is going on. Is the FTC listening?

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Google Gobbling Airwaves to Expand Mobile Data Reach?

excerpt and my italics: “Google’s lobbying activities and its March move to join the Coalition for 4G in America (a consortium that joins Skype, Yahoo, satellite TV provider DirecTV, EchoStar, Intel and wireless services provider Access Spectrum) are bearing fruit. The coalition – which is widely considered to be dominated by Google – has petitioned the FCC asking for policy changes in the airwaves auction. If it has its way the auction will allow packaged bidding, a policy change that would let bidders acquire nationwide licenses…If Google does indeed go wireless, then it will control two key touch points to mobile content and apps: the network and the mobile search engine. It also will be in a prime position to dictate the mobile advertising ecosystem from end to end and not have to bother with pesky mobile operators and third-party players that demand their share of the ad revenue pie. The jury is on whether this is the plan. But if anyone can pull this off, Google can.”

from paidcontent.org

New MIT Book Covers Children/Youth and Digital Culture/Politics

My wife Kathryn C. Montgomery has a new book about to be published. It’s titled Generation Digital: Politics, Commerce, and Childhood in the Age of the Internet.” The following is from the MIT Press catalog:

“Children and teens today have integrated digital culture seamlessly into their lives. For most, using the Internet, playing videogames, downloading music onto an iPod, or multitasking with a cell phone is no more complicated than setting the toaster oven to “bake” or turning on the TV. In Generation Digital, media expert and activist Kathryn C. Montgomery examines the ways in which the new media landscape is changing the nature of childhood and adolescence and analyzes recent political debates that have shaped both policy and practice in digital culture.

The media have pictured the so-called “digital generation” in contradictory ways: as bold trailblazers and innocent victims, as active creators of digital culture and passive targets of digital marketing. This, says Montgomery, reflects our ambivalent attitude toward both youth and technology. She charts a confluence of historical trends that made children and teens a particularly valuable target market during the early commercialization of the Internet and describes the consumer-group advocacy campaign that led to a law to protect children’s privacy on the Internet. Montgomery recounts–as a participant and as a media scholar–the highly publicized battles over indecency and pornography on the Internet. She shows how digital marketing taps into teenagers’ developmental needs and how three public service campaigns–about sexuality, smoking, and political involvement–borrowed their techniques from commercial digital marketers. Not all of today’s techno-savvy youth are politically disaffected; Generation Digital chronicles the ways that many have used the Internet as a political tool, mobilizing young voters in 2004 and waging battles with the music and media industries over control of cultural expression online.”

Congressional Internet Caucus—–Break Your Special Interest Ties

Today’s column by Washington Post reporter Jeffrey Birnbaum focusing on the sale of products and services at Congressional Internet Caucus events [“Soliciting for Good Citizens” reg. required] underscores why it’s time for the bi-partisan group to restructure its relationship with the Internet Education Foundation’s Advisory Committee.

This Congress is supposed to be breaking the ties between the powerful lobbying infrastructure and its political deliberations. Permitting the most powerful corporate media and telecom special interests to, in essence, determine the Caucus agenda is inappropriate (to say the least!). No group funded by the telecom and media industry should play a role as well in shaping the Caucus agenda. We hope the Net Caucus will clean house. Will Caucus co-chairs Senator Pat Leahy, Rep. Rick Boucher, and Rep. Robert Goodlatte do the right thing?

Congressional Internet Caucus: It’s For Sale!

Who really runs the U.S. Congressional Internet Caucus–Members of Congress or the companies and special interests with the deepest checkbook? Take a look at how a forthcoming Congressional Caucus meeting on wireless issues is, literally, for sale. At the NetCaucus website for the event, chaired by Congressman Mike Honda [Chair of the Congressional Internet Caucus’ Wireless Task Force] is a pitch for “sponsorship.” Here’s how you can push your message before the Hill:

“Sponsorship Opportunities

We are seeking responsible industry players to help facilitate this important policy dialogue with a few key sponsorships. These promotional sponsorship options will help position your organization as a thought leader during the substantive discussions. Your assistance will help to bring together leading location-service providers, social networking sites, advertising service providers, wireless carriers, government officials and Congressional players will come together to start discussing the range of issues, policies and opportunities presented by this emerging marketplace.

Options include:
Dialogue pens: Distribute pens with your logo in conference bags and binders.
Dialogue breaks: We’ll announce your sponsorship of the morning continental breakfast or mid-morning coffee break and feature your logo or brand in the break area.
Dialogue Wi-Fi Hotspots: We will blanket the meeting area with wireless Internet access and include you as a promotional sponsor.
Post-Dialogue VIP Dinner End the conference on a high note and host a VIP event; choose from some of D.C.’s finest restaurants. ICAC staff will work with you to craft the perfect guest list.

Contact us for details & pricing.”

It’s time that the Caucus break its ties with the Advisory Committee and become a truly independent forum. Take a look at the Advisors!

Columbia Pres. Lee Bollinger Should Not be on board of Washington Post Co.

We need more independent scholars and public intellectuals, especially in the communications and media fields. That’s why it is disheartening to learn that well-regarded First Amendment scholar and Columbia U. president Lee C. Bollinger has agreed to become a director at the Washington Post Co. Such an involvement raises a number of critical conflicts and problems.

First, Mr. Bollinger will be working to help a company that has substantial interests and investments that run counter to a truly open and diverse communications system in the U.S. Through the Post’s Cable One subsidiary, the company is working to maintain the cable industry’s control over both the multichannel television and broadband marketplace. The Post via Cable One is a member–and has served as a –of the lobby group National Cable Telecommunications Association. The NCTA’s record is strongly anti-First Amendment in terms of the rights of the public, especially its stance against network neutrality (non-discriminatory access).

The Post is also backing the elimination of the key federal safeguard promoting diversity of media ownership–the broadcast and newspaper cross-ownership rule. Through the Post Co’s membership in the lobbying trade group Newspaper Association of America, it is helping to promote consolidation and, more critically, the further erosion of journalistic quality. Finally, the Post is a member of the board of the Interactive Advertising Bureau–a group opposed to the kind of consumer safeguards that would protect our privacy online.

Too many academics have ended up working with media conglomerates, helping their consolidation agenda. We are at a crucial moment in the history of U.S.—and global—media. Much work needs to be done to protect the First Amendment rights of the public in the digital era; ensure the openness of the Internet; and help revitalize professional journalism. The country requires independent voices from outside institutions who can speak beyond the narrow self-interests commonly evoked by media companies. We need scholars who are not schmoozing with (such current Post directors) as Melinda Gates, Barry Diller, and Warren Buffet.

Lee Bollinger is a distinguised intellectual and author. But he should be on the outside of the media lobby, examining it critically on behalf of the public interest. Instead, he will likely be swallowed up by it.