Category: Google

The Hidden Power of Doubleclick’s Databases

Here’s an excerpt from a new trade story. We think it’s relevant to the Google merger review, including the issue of data access and privacy. “excerpt: “Well, it turns out that the “raw” numbers we are using aren’t really raw. They look “raw” to us because 99.99% of the agency people do not have access to (or even want to look at) the raw raw. The raw raw is what the insiders would call log files. They are usually sitting with adservers (DoubleClick, Atlas, etc) and in their databases. Yes, you heard me right. There are databases, humongous ones that collect and compile cookie-level information. And there are database experts, lots of them. We do not see them, because they are not agency people. They work for adservers and sit behind the shields of adserver’s account reps. So in the end we are very much like a database marketing operation, except that in our case database and marketing are siloed in two different organizations.”

from: “The Magic Window.” Chen Wang. Online Metrics Insider. Oct. 12, 2007.

Doubleclick: Self-Proclaimed "Nerve Center of Digital Marketing"

We believe Google is telling reporters and others that the FTC staff have said the merger is approved. Our information is that’s not true at all. If Google is engaging in such a PR campaign, it’s another indication that corporate lobbying goals–not honest debate–is more important to its leadership and culture. Of course, the commission prohibits such information being told to the merger-related parties and the public. Our sources tell us that the staff is only half-way through its review. And that’s before the EC begins what we hope will be an intense analysis of Google’s market position–including the data it will have unfettered access to, if a Doubleclick deal is approved.

But back to Doubleclick. Last Spring, it unveiled a new “brand” identity, declaring itself the “Nerve Center of Digital Marketing.” The company proclaimed that it was “the premier provider of digital advertising technology and services…serving the world’s leading buyers and sellers of digital media.” And just to remind the good folks over at the FTC. Here’s how the company describes itself: “The world’s top marketers, publishers and agencies utilize DoubleClick’s expertise in ad serving, rich media, video, search and affiliate marketing to help them make the most of the digital medium. From its position at the nerve center of digital marketing, DoubleClick provides superior insights and insider knowledge to its customers. Headquartered in New York, and with 17 offices and development hubs and 15 data centers worldwide, the company employs more than 1200 people and delivers billions of digital communications every day. Learn more at www.doubleclick.com.”

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Yahoo! No Competitor for Google (and neither is MSN!)

excerpt from: “Yahoo Worth More Divided Or Sold: Analyst”

YAHOO’S VALUE WILL NOT BE unleashed until it is broken up or sold, Sanford C. Bernstein & Co. analyst Jeffrey Lindsay said in a research report last week. “To stop the inevitable slide into irrelevance, the management team must consider more radical actions and strategies,” Lindsay wrote. “Incremental changes to rebuild revenues simply won’t cut it this time.”…
Yahoo could be broken into ad and subscription businesses to reach his $39-a-share estimate, Lindsay wrote.”

article by Laurie Petersen, executive editor, MediaPost.

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Reading the Google merger tea leaves in the trade press

Just for the record, here are 3 excerpts from trade articles we believe are relevant to the merger review.

1. “Ad networks given last chance to question Google-DoubleClick deal” [NMA Magazine (UK). 13.09.07]

British ad networks have expressed strong concerns to the EU over the $3.1bn (£1.53bn) Google buyout of ad serving giant DoubleClick. As the deadline for responding to the European Commission’s Directorate on Competition draws near, the industry warned that there would be problems with the merger…Networks have responded to consultation from the Commission about any problems they have with the merger deal, announced in April. This is the last formal way for companies to express their concerns with the merger, although some remain cynical as to whether it will make any difference.

Phil Nott, sales director at Adrevenue, said networks should still send through their objections. “People have accepted this is going through too easily. If they knew they could send in their views and get a chance to block it, then maybe more would speak up about their concerns.”

2. Do Home Pages Have a Place in Web 2.0’s Future? Advertising Age. Oct 1, 2007.

“The report, out today, will serve as a “sanity check” for some early Web 2.0 adopters and technophiles. And, he said, “for more traditional marketers, there’s a whole new world we have to introduce them to.” One of the most surprising things the team found was how many people are starting their online shopping with search — more than 54% of the study’s panel, in fact. The idea that more consumers are coming to brand sites through the side door of search means search engines are starting to circumvent brands when it comes to online shopping. While a consumer looking for a pizza stone offline might drive to her nearest Williams-Sonoma, in the online world she’s more likely to just type the product name into Google and see what comes up.”

3. “Out of the Box: More Than Nine Billion Videos Served.” Brandweek. October 01, 2007
In July, Americans viewed more than 9 billion videos online, according to comScore’s Video Metrix report. Nearly 75% of U.S. Internet users watched an average of three hours of online video during the month.

Google Sites topped the July rankings with the most unique viewers and most videos viewed. Nearly 2.5 billion videos were viewed there (a 27% share of videos)—a full 2.4 billion at YouTube.com. Yahoo! Sites ranked second with 390 million (4.3%), followed by Fox Interactive Media with 298 million (3.3%) and Viacom Digital with 281 million (3.1%).

Germany state privacy commissioner warns about unique threats with Google/Doubleclick

It’s so telling that Google keeps trying to change the subject, suggesting that concerns about privacy and its proposed takeover of Doubleclick should be confined to a larger discussion focused on the online marketing industry as a whole. Google should stop trying to shift the debate, and forthrightly address the unique issues. Yes, we need a discussion–and a national, effective privacy policy for online communications. But the Google planned acquisition of Doubleclick raises unique concerns. That’s why this press report about the letter sent by a German state data protection commissioner is important. They get it. Here’s an excerpt from an English-language news report, that includes link to the letter sent to the European Commissioner for Competition: “The Data Protection Commissioner of the German federal state of Schleswig-Holstein Thilo Weichert has expressed grave reservations about Google’s acquisition of the advertising marketing company DoubleClick. “At present we have to assume that in the event of a takeover of DoubleClick the databases of that company will be integrated into those of Google, with the result that fundamental provisions of the European Data Protection Directive will be violated,” the head of the Independent State Center for Data Protection of the federal state of Schleswig-Holstein (ULD) in Kiel writes in a letter addressed to Neelie Kroes, the European Commissioner for Competition. The merger of the two Internet companies “would thus lead to a massive violation of data privacy rights” of consumers in the European Union… The coming together of Google and DoubleClick would thus as a consequence lead to even more detailed analyses of personal data and make the creation of user profiles possible. “Such an approach contradicts fundamental data privacy principles of the European Union: limited specific use, transparency, the right to object, the protection of sensitive data and the right to having data deleted,” the head of the ULD observed.”

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Doubleclick Does Mobile Ad Collection/Targeting. Waiting for GooglePhone?

excerpt: “DoubleClick Mobile will integrate with DART for Publishers to provide ad trafficking and yield optimization for campaigns designed to appear on phones. Additionally, the company plans to release a mobile ad management product for advertisers sometime in 2008, according to Ari Paparo, DoubleClick’s VP of rich media and emerging technologies…DoubleClick Mobile aims to bring “a lot of heavy iron” to the developing marketplace for ads on handsets. The product is capable of pairing ads with content according to the screen size and capabilities of the device being used to view them, and supports device-specific previews for each ad position and execution. In addition to standard mobile display ads, it supports ad formats such as combination ads and roadblocks. Through pixel-based ad tracking, agencies and other third parties can access campaign performance data through their own campaign reporting systems..

DoubleClick Mobile is launching simultaneously in the U.S. and Europe… Next year, the company plans to release a more comprehensive mobile ad management suite that includes tools for agencies to plan and track their mobile campaigns…

DoubleClick Mobile comes just a week after Google, its probable soon-to-be parent, opened publisher enrollment for its AdSense for Mobile program.”

from: “Doubleclick Launches Site-Side Mobile Ad Management, Advertiser Version in Development.” Zachary Rodgers. ClickZ. September 24, 2007

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Google Hides Behind Online Content to Protect its Data-Gathering/Targeted Marketing Business

Google’s D.C. public policy lobbyists need to do better than echo the same phrases that advertisers have used for decades. Whenever questions are raised about unethical and consumer harmful business practices, advertising companies–now including Google it appears–trot out the same old canard. Google’s policy people say that we should all be thankful that online advertising has given the public “consumer benefits in the form of more online resources and more relevant information…Simply put, advertising is information, and relevant advertising is information that is useful to consumers.” We are happy to debate the issue about the role online advertising plays in the future of diverse content, especially news. We have real concerns about the gatekeeping role Google and a few others will play as the online content market rapidly evolves. But Google has not answered the basic question, months after its announced takeover of Doubleclick. What privacy advocates are saying is that the way Google conducts its interactive marketing business (especially in the light of the proposed takeover) is a privacy concern–not online advertising itself.

Google CEO Eric Schmidt (see his new Financial Times op-ed) wrote that although Google is concerned about privacy, the solution does not “…automatically mean new laws. In my experience self-regulation often works better than legislation – especially in highly competitive markets where people can easily switch providers.” But, of course, with Google’s dramatic expansion, along with the rush to consolidate (Microsoft, Yahoo! and Time Warner, among others), it’s questionable whether we will have competition. Besides, we require national laws, not self-serving declarations from CEO’s whose business model depends on the collection and expanded use of personal information.

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Canadian Privacy Group Raises Key Concerns on Google, Doubleclick and Threat to our Privacy

We urge everyone to read the CIPPIC petition filed yesterday in Canada asking for a investigation of Google and Doubleclick. Among the key questions raised is whether the two companies are violating Canadian privacy law (Personal Information Protection and Electronic Documents Act-PIPEDA). The full document is on the Canadian Internet Policy and Public Interest Clinic website. But here are some key excerpts raising very important issues. Bravo! (and Merci) CIPPIC.

“37. Google’s servers automatically record information when the user visits Google’s website or uses Google products. Google server logs record the search request, URL, Internet Protocol (IP) address, browser type and language, and the date and time of the request, and one or more cookies that may uniquely identify the user’s browser. Google stores server logs indefinitely, but “anonymizes” them after 18 months.

38. The act of collecting user search queries and IP addresses invokes PIPEDA, requiring Google to provide adequate notice to users of any collection, retention, use, or disclosure of personal information other than that which can be reasonably implied (in this case, collection, retention and use necessary to deliver search results to the individual user). Without such notice, Google cannot be said to be obtaining meaningful consent from users to any other information practices, including retention and use for targeted marketing purposes.

39. The fact that Google’s search service is entirely dependent upon targeted marketing to users is not evident to the ordinary computer user. It cannot therefore be said that users implicitly consent to the use of their data for marketing purposes, even if such use is central to Google’s business model. Indeed, most users likely do not reasonably expect Google to retain their search queries in connection to their IP address for much longer than necessary to deliver the requested search results.

62. Google collects a variety of personal information about its users and uses that information to, among other things, improve its target marketing services. Online advertising services are constantly being improved, sometimes in ways that involve greater collection and use of personal data. This raises the question of what level of data collection and analysis is necessary for the purpose of target marketing; at what point is Google collecting more personal data than necessary for advertising purposes? No doubt Google is limiting its collection of data to that which is relevant for the marketing purposes, but the test in Canada is necessity, not relevance.

63. CIPPIC submits that a determination of what is necessary under Principle 4.4 should be driven not by what is possible or desirable from an advertising perspective, but rather what is actually necessary for Google to provide the service. The same test should be applied to all online advertisers, not just Google.”

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Google’s Mobile Search Advertising Ambition: Control the Market

From Online Media Daily [“Google’s Mobile Ad Move Gets Everybody Talking.” Tameka Lee. September 14, 2007] excerpt:

The search giant “is acting fast to take control of the mobile search ad market–a crucial move if it expands as predicted,” said Silicon Alley Insider’s Dan Frommer. And with The Kelsey Group predicting mobile search to generate more than $1.4 billion in ad revenue by 2012, Google is trying to get a jump on what right now is anyone’s game.

Google had been testing mobile text ads since last year, but decided to expand the effort–informing all AdWords advertisers through emails that if they didn’t opt-out, their sponsored links would now be served to mobile searchers…

According to a Google spokesperson, the company went full-scale with mobile search ads, partly because of the sheer volume of mobile-ready ads in place, and because “the mobile space is an increasingly important part of how users are accessing information.