Category: broadband

Why did Yahoo Tell SEC in 2007 that Google was biggest competitor, but now–with proposed new deal–it becomes its partner?

In its most recent 2007 SEC 10K, Yahoo listed Google as its primary competitor: “We face significant competition from large-scale Internet content, product and service aggregators, principally Google, Microsoft and AOL…. Google’s Internet search service directly competes with us for Affiliate and advertiser arrangements, both of which are key to our business and operating results.” But now, with this proposed arrangement, Yahoo’s former principal competitor is its partner. The same 2007 SEC report submitted by Yahoo also cited the development of its “Panama” search ad system as one of its major accomplishments.

When the Senate raises questions this week on the deal, it should ask Yahoo how it could tell the SEC and investors one thing–and then quickly reverse itself.

source: Yahoo Form 10K. Filed February 27, 2008. Available at: http://yhoo.client.shareholder.com/sec.cfm?DocType=Annual

Google/Yahoo deal and its impact on newspapers

One of the issues the Center for Digital Democracy has asked the Department of Justice to investigate is the impact of the proposed deal between Google and Yahoo and its impact on the already endangered newspaper business. Both Yahoo and Google provide online search ads or related services for the majority of the country’s newspapers. Analyzing how the pairing of Yahoo and Google may affect payments to newspaper publishers, and whether there may be the potential loss of competition, is necessary. Given the current financial pressure on newspapers, CDD urged ‘DoJ to examine the deal to address whether it will contribute to a loss in revenues necessary to ensure Americans have access to print-oriented news resources.” (It’s also interesting to note that Yahoo was reported in the trade press in February 2008 as seeing the potential of its newspaper ad platform to even compete with DoubleClick–which at the time was already acquired by Google

Google/YouTube/Viacom & Privacy: Everyone tracking our online video use

The stories on a judge’s order for Google to turn-over to Viacom data on YouTube users have largely ignored a key issue: why is Google–and almost every other leading broadband video provider tracking and analyzing our online viewing habits. It’s because–like with broadband generally and with television–the goal is to know exactly what we are viewing in order to better target us with advertising. In the case of broadband video, whether it is YouTube, Hulu, or Joost, for example, it’s about tracking our viewing so well we can be micro-targeted.

Google sees huge profits for YouTube doing this. They now call YouTube a “next-generation advertising platform,” something we think reflects how they really view the service. Google is pitching the branding and sellling of YouTube to advertisers. Google is now tracking YouTube views as it promotes to advertisers a scheme to take advantage of the “viral” marketing capabilities of YouTube. Finally, it’s also useful to consider how Google’s recently acquired DoubleClick also has a product tracking and analyzing broadband video. Users and policymakers should expect their online viewing will be private–and not to be spied upon. Whether by Viacom, the government, or Google itself.

Google’s online video clout bigger than the TV networks

Just a friendly reminder that the new media world is here–and that it should be the primary focus of public interest communications policy strategies. Via Variety (excerpt):

More signs of the Internet apocalypse for TV’s old guard: U.S. Web surfers viewed some 11 billion online videos in April, a gain of 33% from the same month last year.

According to just-released Web traffic stats from comScore, the most ominous stat is how ardently the next generation has taken to watching video on the Internet.

Online vid viewing is highest among 18- 34-year-olds, who averaged 287 minutes in April…And make no mistake, YouTube is CBS, NBC, ABC and Fox combined on the Internet.”
source: Net traffic signs suggest TV offramp: Web surfers ride YouTube, MySpace wave. Cynthia Littleton. Variety. June 23-29 2008 [print edition. sub required].

Google’s new online ad-suppported animated venture:“We feel that we have recreated the mass media”

That’s the headline here–“We feel that we have recreated the mass media,” said Kim Malone Scott, director of sales and operations for AdSense in a New York Times article on Google backing a “Calvalcade of Cartoon Comedy” for online. Google is likely using its resources which can track how long users are likely to watch a video, and how they interact with a slew of interactive advertising pitches. They can measure each click too, so they can better determine what works for the commercial sell.

But, of course, the analogy to the “mass media” is what is interesting. Google is leading the way to recreate the mass media in the digital age. They are right about that. But with such an ambitious plan comes responsibility–to ensure there is funding for serious and diverse independent news, investigative reporting, and quality cultural programming. Google should also help ensure that women and people of color–now cut out of ownership in media–actually own significant parts of the new digital content landscape. And there must also be a serious privacy policy which covers broadband video as well. Google, its advertisers, and partners shouldn’t automatically know what we watch and how we respond (without our permission–and with special rules for children and adolescents).

source for quote: Google and Creator of `Family Guy’ Strike a Deal. Brooks Barnes. NYT. June 30, 2008

The IAB Can’t Say the Word “Privacy” Before the U.S. Congress

On Wednesday, IAB president Randall Rothenberg testified before a House Small Business subcommittee. Incredibly, the written testimony failed to mention privacy. Nor did the testimony really convey the nature of interactive advertising today. We will be contacting the subcommittee to set the record straight. And the IAB has to do some serious soul-searching. As more people become informed about the data collection and targeting practices underlying digital marketing, they will expect that companies doing business online are engaged in ethical data collection practices. This will be especially true when it comes to protecting the privacy and consumer welfare of children and teens.

PS: This excerpt from Mr. Rothenberg’s testimony is another illustration of how out of touch the IAB has become. They can’t acknowledge the industry’s problems and offer reasonable solutions. The IAB is also going to hurt small business, once customers learn how their privacy is threatened (and how online advertising raises medical and financial data issues, for example). Perhaps someone will come along offering responsible leadership on this issue for small business. They aren’t getting it from the IAB’s lobbying campaign. Once again, no one is saying there shouldn’t be online advertising. But we are saying that privacy has to be protected–where consumers are in charge of what is collected. And that some practices–including data collection and targeting of children and adolescents as well as sectors such as medical information–require safeguards. But the IAB’s leadership has decided to use the “Chicken Little, Our Data Won’t Be Falling” scare tactic.

“A small but vocal coterie of forces opposed generally to marketing, advertising, and open media markets is attempting to advocate to limit the technology responsible for this internet advertising revolution.

Although these advocacy groups have provided no evidence of public harm, their efforts have begun resulting in regulatory proposals which, if enacted, would severely hinder the ability of small publishers to support themselves with advertising sales, and impair the ability of small businesses to use interactive advertising to market themselves.”

Google expands data targeting and profiling to provide “more brand lift and brand awareness” for ads

Google’s new “Ad Planner” is just one of a series of tools now emerging which are designed to more precisely track and target consumers for advertising campaigns. Microsoft’s “Engagement” initiative has similar roots. “The focus [of Google Ad Planner] is primarily on creating more brand lift and brand awareness [for advertsiers],” [Wayne Lin, business product manager at Google] told DMNews.” Here’s an excerpt from the article:

The tool lets advertisers match demographics and related searches for a particular site, or aggregate statistics for sites in the advertisers’ buying plan.

“This will expose many more sites that are much deeper into the Web,” Lin said. “It opens up data that wasn’t necessary visible before.”

Lin would not elaborate on specifics of how the data is pulled, but said that Google’s wide reach and powerful analytics would provide information on the long tail of the Web.

Internet for Everyone: Broadband access should be a right, not just a feature of the “competitive” market

The new non-profit and corporate coalition has nice rhetoric, but fails to articulate a policy agenda that would really address the digital divide. Public interest media groups should be calling on government and industry to provide free access to broadband for those who can’t afford it (whose numbers must be increasing, given the current economic squeeze). Just having “access” doesn’t mean it would be really affordable. Universal service in the digital age should mean the right of everyone to have broadband service in their home–as well as eventually on the mobile network. Americans should also have a broadband system where privacy is protected and is not primarily focused on data collection and the delivery of interactive marketing messages. That principle is noticeably missing from the new group’s statement. But the kind of Internet Google and other online advertisers will bring us threatens our privacy. [Google is a member of this new group.] Yes, we should have real competition–and the Bush decision awarding cable and phone companies a monopoly over residential broadband service should be reversed. Yes, we need network neutrality. But we also need to address quickly how we can ensure low income Americans have the access they require. That should involve a call for the government to pass legislation requiring a build-out of digital infrastructure, foster for profit  and not-for-profit ISP competition, and provide subsidized access for all. Broadband access is a necessity, and should be an essential “Right” Americans have in the digital era.

Google pushes Plug-in Vehicles while it expands its ad pitching for the auto industry

We are glad Google seriously wants to improve the environment, and sponsored, as its corporate blog noted, this recent two-day conference in Washington, DC. The event was designed to “showcase plug-in electric vehicles and examine how the government can support their widespread adoption.”

But it needs to reconcile this noble cause with its business practices. Here’s an excerpt from Google’s job announcement for “Industry Head-Automotive” (based in the UK):

As a Google Automotive Industry Head, you’ll be working with those who produce, market or sell products or services related to cars, trucks, boats or other transportation vehicles. This includes original equipment manufactures, third-party websites, dealers and after-market parts and accessories companies. This is a highly consultative position that reports directly to the Automotive Industry Leader. You’ll be responsible for presenting the team’s strategy and managing a team of experts to increase sales on a national level. Focusing on building strong relationships at the highest possible level, your goal is to help your automotive clients get as many of their marketable assets online in an affordable and measurable way. You’ll combine exceptional Automotive knowledge, deep industry and marketing agency relationships…to develop and close new business as well as grow existing business.

Responsibilities:

  • Develop the vision and manage the sales/account strategies that will fully unlock the potential in the Automotive sector.
  • Build and maintain relationships with senior-level clients, industry-specific direct advertisers and relevant agency contacts.
  • Educate the Automotive industry and evangelise Google, particularly at targeted events, conferences and media opportunities….
  • Develop a deep understanding of the business needs of Automotive advertisers and insights into consumer behaviour.

Google’s Expanded Ad Targeting: Interactive Video & Rich Media

In May, when Google opened up its content network to other online ad companies, one of them was PointRoll. We think, as the online ad and privacy debate heats up, it’s useful to highlight the PointRoll announcement of its deal with Google:

PointRoll, the leading provider of rich media technology solutions, announced today that the company has joined with Google to enable PointRoll’s advertisers to run rich media ad campaigns across the Google content network, one of the world’s largest advertising networks… PointRoll currently provides its interactive capabilities and engaging brand-building formats to 65% of the Fortune 100, and now its clients can integrate the Google content network into their rich media campaigns…Using PointRoll’s precise targeting technology and measurement capabilities, advertisers are able to reach their desired audience with the most relevant and salient messages, and definitively analyze campaign effectiveness…PointRoll’s sophisticated targeting technologies can now optimize the breadth of Google’s sites and categories, matching advertisers’ messages to the users who find them most relevant…The Google content network joins the more than 3,000 online publishers-including elite sites such as AOL, MSN, Yahoo! and The New York Times-that leverage PointRoll rich media to provide powerful, engaging brand experiences to users.”