Category: media ownership

Yahoo! Swallows Blue Lithium to Expand its Behavioral Targeting Effort

The ever-growing consolidation of control in the online ad market continues (something CDD and USPIRG warned the FTC about in Nov. 2006). Yesterday, Yahoo! acquired ad network and behavioral targeting firm Blue Lithium. The deal is part of the spate of $30b or so mergers [Ad Age. sub. may be required] and acquisitions in the ad marketplace we’ve witnessed just in the first half of 2007. There have been major deals by Google [Doubleclick], Microsoft [aQuantive], Time Warner’s AOL [Third Screen Media, Tacoda], WPP [24/7] and Yahoo! itself (RightMedia]. These deals are a major threat to privacy. Here’s what Yahoo!’s Jerry Yang said in announcing the deal:

“This acquisition will extend our ability to deliver powerful data analytics, advanced targeting and innovative media buying strategies to our customers, who are increasingly looking for these insights. By leveraging BlueLithium’s complementary expertise and tools, we will be able to better address the needs of our performance-based display advertisers and enhance the value of our publishers’ inventory.”

Blue Lithium adds to Yahoo!’s BT data-collecting and targeting arsenal ( it recently launched the perversely termed “smart ads” effort). It’s newly acquired online ad exchange–RightMedia–also offers behavioral targeting. There is a tremendous explosion going on in terms of data collection, profiling, etc. from online marketers. It’s not–as Yahoo! lamely claims–about seeing an ad for Las Vegas instead of Paris if you want to get married in Nevada. It’s about commercial surveillance and the manipulation of the public.

PS: Paidcontent.org pointed out this comment on Yahoo!s corporate blog, which shows you their partners and reach:
“By acquiring BlueLithium, we’ll be accelerating our advertiser, product, and engineering roadmaps and will be in position to better compete in the burgeoning performance marketing arena.

This is the logical next step as we build what we believe will be one of the world’s leading online display ad networks, which includes inventory on Yahoo!’s owned and operated properties, our affiliate network (our partnerships with eBay, Comcast, and our consortium of nearly 400 newspapers), the Yahoo! Publisher Network, and the Right Media Exchange.”

Stat on Blue Lithium via DM News:  “According to comScore Media Metrix, BlueLithium is the fifth largest ad network in the United States and second largest in the UK with 145 million unique visitors each month.”

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Dow Jones Conflict Watch: Murdoch, WPP, China Broadband

Just for the record, we want to highlight this Telegraph (UK) story about ad giant WPP investing in China Broadband Capital Partners [via the ever vigilant folks at paidcontent.org]. Here’s an excerpt about Murdoch:
“Co-investors in the China Broadband fund include Rupert Murdoch’s News Corporation, which owns MySpace and holds a stake in the social networking site’s embryonic Chinese operation, and China Netcom, one of the country’s two major state-owned fixed-line operators. PCCW, the Hong Kong-based media group, is also an investor in the fund…China Broadband’s most significant investment to date was its acquisition of a stake in MySpace China, which has yet to be formally launched. A beta version of the site was unveiled in April, and News Corp has not disclosed any details about its performance.”

How can the good journalists at the WSJ and Dow Jones ever hope to really tackle the issues involving Murdoch’s holdings and relationships? They will try, but probably can’t sustain it in the long run. Let’s keep an eye, meanwhile, on News Corp, WPP and the China connection. The Chinese people have a lot at stake about who controls their media future, especially when it combines state control with hyper-commercialization.

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FCC Commissioner Copps is Right. U.S. Needs Broad Debate on Media Policy: Past, Present & Future

Last Friday, FCC Commissioner Michael Copps was a guest on the Bill Moyers Journal public television program. Copps urged the country to have a serious discussion about the future of the U.S. communications system during this crucial period of transition from old to digital media. He is correct that we deserve to make what’s going on–and will likely occur–as conscious and participatory as possible. It’s not a mystery that the corrupt politics of media policy-making and greed have left our journalistic and entertainment institutions largely bereft of public service, deprived us of vibrant journalism, and has prevented diversity of ownership control by both people of color and women. It’s not a secret to see the broadband world we are headed towards, unless we create a national movement focused on creating democratic structures for broadband communications (both policy and market-based).

That’s why the plea by Commissioner Copps should serve as a call-to-action for advocates and others concerned about the future of our media system (hello, J-School Deans and foundations, for example). It’s time to discuss the very rapildy emerging future, as we close the door on the 20th Century struggles that have exemplified broadcast and media ownership policy. Let’s tackle how the “public interest, convenience, and necessity” should be defined in this part of the 21st Century. Before it is entirely decided by the same powerful forces which determined the fate of radio, broadcast T.V. and cable.

When Do Google, Washington Post, Time Warner, Disney, Microsoft, Cox et al. work together lobbying? As they help IAB make the U.S safe for Internet Advertising practices

The Interactive Advertising Bureau (IAB) has stepped up its efforts as a lobbying force in D.C. The group wants to make sure we don’t have laws and regulations which would meaningfully protect the public, including consumers. Here’s how the IAB describes its “Public Policy Council” (one of the groups many standing councils and committees):

“Proactively lobby Congress and Federal Administrative agencies on privacy issues, with a focus on educating key decision-makers on the importance of the interactive advertising industry. 2. Help craft meaningful legislative proposals that protect consumers’ privacy interests without unduly burdening legitimate interactive advertising practices. 3. Engage the Federal Trade Commission to influence future enforcement proceedings, potential rulemakings, and public workshops on issues central to the interactive advertising industry.”

Here is their mission statement and a list of the policy council members:

Mission

Lead the advocacy efforts of IAB’s membership as they engage all levels of government on key policy issues in order to ensure continued growth of the industry.

Committee Leadership
  • Dave Morgan, Tacoda, Chair
Committee Participants
  • Alan Davidson, Google, Inc.
  • Alan Roth, Zango
  • Alexandra Wilson, Cox Newspapers, Inc.
  • Alissa Kaplan, 24/7 Real Media, Inc.
  • Andrew Moskowitz, Vizi Media
  • Anne Lucey, CBS Digital Media
  • Bennet Kelley, ValueClick Media
  • Bennett Zucker, Right Media Inc.
  • Bill Bailey, Walt Disney Internet Group
  • Bob Filice, Blue Lithium
  • Brad Aaron, Q Interactive
  • Brent Thompson, IAC Media & Advertising
  • Brooks Dobbs, DoubleClick, Inc.
  • Bryce Harlow, CBS Digital Media
  • Caroline Little, Washingtonpost.Newsweek Interactive
  • Charles Curran, AOL
  • Chris Kelly, Facebook
  • Chris Lin, comScore
  • Cliff Harris, Cablevision Advanced Systems
  • Colin Johnson, Motive Interactive Inc
  • Craig Spiezle, MSN (Microsoft Digital Advertising Solutions)
  • Dan O’Connell, WeatherBug
  • Danny Choriki, ADTECH US, Inc.
  • David Cancel, Compete, Inc.
  • David Green, NBC Universal Digital Media
  • David Payne, CNN.com
  • Diane McDade, MSN (Microsoft Digital Advertising Solutions)
  • Don Mathis, Azoogle Ads, Inc.
  • Erin Miranda, Weather Channel Interactive (Weather.com)
  • Frank Torres, MSN (Microsoft Digital Advertising Solutions)
  • George Pappachen, Dynamic Logic
  • Greg Berretta, Zango
  • Gregg Pendola, Walt Disney Internet Group
  • Henry Goldstein, CNET Networks, Inc.
  • Hillary Smith, Right Media Inc.
  • Ho Shin, Advertising.com
  • Jeff Long, Revolution Health Group
  • Joey Lesesne, Cox Newspapers, Inc.
  • John Barabino, Google, Inc.
  • John Hopkins, WebMD
  • John Orlando, CBS Digital Media
  • John Wilk, WorldNow
  • Jonathan Meyers, Forbes.com
  • Josh Brown, CBS Digital Media
  • Jules Polonetsky, AOL
  • Karl Gallant, ValueClick, Inc.
  • Ken Levin, Edmunds.com
  • Ken McGraw, Zango
  • Laura O’Daly, iVillage, Inc
  • Lesley Grossblatt, I/PRO
  • Leslie Dunlap, Yahoo!, Inc.
  • Linda Chan, SourceForge Inc.
  • Linda Schoemaker, aQuantive, Inc.
  • Lisa Anderson, AOL
  • Louis Hengen, Tacoda
  • Marilyn Cade, AT&T
  • Mary Berk, MSN (Microsoft Digital Advertising Solutions)
  • Matt Kaminer, WebMD
  • Matthew Stern, Musicloads
  • Melissa DeVita, MediaFLO USA, Inc.
  • Michael Drobac, Ask, Inc
  • Pablo Chavez, Google, Inc.
  • Pesach Lattin, Vizi Media
  • Phil Stelter, Range Online Media, Inc.
  • Richard Bates, Walt Disney Internet Group
  • Rick Lane, News. Corp
  • Robert Gratchner, Atlas Solutions
  • Sarah Deutsch, Idearc Media Corp.’s SuperPages.com
  • Shayne Bryant, Idearc Media Corp.’s SuperPages.com
  • Shayne Wiley, Yahoo!, Inc.
  • Sheri McGaughy, Weather Channel Interactive (Weather.com)
  • Sherrese Smith, Washingtonpost.Newsweek Interactive
  • Steve Emmert, LexisNexis Martindale-Hubbell
  • Susan Fox, Walt Disney Internet Group
  • Tom Bartel, Return Path
  • Tom Beck, Enlighten

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Google & Doubleclick: Merging the No 1. Video Platforms

It’s important to follow the online ad marketplace for video-based advertising. Note what a Doubleclick top exec said in a ClickZ interview: ” We claim we do the most video on the Internet.” The same exec also said that “[A]ccording to all the figures, as far as we can tell, we’re the second largest rich media vendor.”

Of course, Google’s YouTube is the number one online video brand as well [a Google rep. is quoted saying that it’s now the eight largest website]. As YouTube explains, it is “the world’s largest online video community allowing millions of people to discover, watch and share originally created videos. YouTube… acts as a distribution platform for original content creators and advertisers large and small.”

In other words, the merging of Google with Doubleclick will create an online video and search advertising and marketing powerhouse–one which threatens both competition and privacy (among other issues).

excerpt:
A Multi-Party System or a Monopoly

While Google looks at spending potentially $4.6 billion on the wireless auction, it has another multi-billion dollar matter it would like to have settled. That, of course, is its acquisition of DoubleClick. Announced in April, the deal has been met with significant backlash and questioning from all corners. Currently the deal awaits Federal Trade Commission approval. At stake is potential control of the Web advertising ecosystem. A marriage of Google & DoubleClick creates a clear pecking order for all advertising online — an order that would once again put Yahoo and Microsoft in a trailing position…To date, Google employees have out-contributed Microsoft employees toward the 2008 presidential candidates — a stark contrast to the 10:1 contribution margin that existed in 2006…As Google tries to rewrite the rules on how advertising is done and expands its reach into all spectrums of communications, the importance of Washington will only grow. Over the past two years Google has grown its Washington lobbyists base from 0 to 12 (a sizable number for a technology company), hosted four 2008 presidential candidates on its campus (three Dems, one Republican) and established its own political action committee that has already out-raised its 2006 total.”

from: “The Next President: Sponsored by Google.” Chris Copeland. Search Insider. August 10, 2007.

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FCC Chairmen and the Revolving Industry Door: A Higher Standard is Required

The list of former FCC chairs working in the media and communications business–either as lobbyists, consultants, or investors–is in illustration of why the commission is badly in need of reform. One day a chair is overseeing a media company–or a policy directly affecting it. The next day–after they leave office–they are working for the company or the industry. We really require FCC commissioners who are independent of the media and communications industry–before and after they leave the commission.

Michael Powell took a job as senior advisor at the buy-out firm Providence Equity Partners. Since he joined the firm, they have acquired–in whole or part–TV stations, a spanish language network, other media properties. Take a look at this report from the Los Angeles Times about the Orange County Register and note the role of Powell’s Providence. The deal was made prior to Powell joining the firm, but he’s there now, while these layoffs are happening [my italics]:

“Newsroom staffers described a morose — and tense — newsroom. Dragging out the layoffs for a week, they said, seemed particularly cruel and stressful.

“The way they’re doing this is just horrible,” one longtime staffer said. “It’s like, ‘Thanks for everything. Get out. Here’s some boxes, start packing.’ ”
…In 2004, privately held Freedom Communications Inc., parent of the Register, worked out a $1.3-billion buyout deal that saw more than half of the members of the founding Hoiles clan cash out their holdings and private equity firms Blackstone Group and Providence Equity Partners purchase nearly 40% of the shares. At the time, insiders said the investors borrowed a little less than $1 billion and provided about $400 million more in private capital to finance the deal.”

Then we have former Clinton appointed chair Reed Hundt engaged in his favorite twin occupation of media industry guru/investor. Hundt had been helping lead the effort by his Frontline Wireless company to have the commission approve policies compatible to his interests. Even former Reagan-era FCC chair Mark Fowler is working with Hundt’s Frontline.

FCC reform should be at the top of the public interest policy agenda, esp. with the future of democratic communications at stake.
source for Powell/Provide/OC Register story: “O.C. Register lays off workers: The newspaper will also trim news space to reduce costs as its revenue decline.” Kimi Yoshino. Los Angeles Times. Aug. 7, 2007.

Yesterday, the FTC sent out a release announcing its November town meeting on online advertising and privacy. The hearing is in response to the formal complaint my group Center for Digital Democracy and the USPIRG filed last November.

It’s clear that the FTC is fearful of really tackling the privacy and consumer-manipulation problems intrinsic to the online ad field. Behavioral targeting, which we also address in our complaint, is just the tip of the proverbial data collection and target marketing iceberg. Policymakers at the FTC, the Congress, and state A-G’s must do a better job in addressing this problem. Chapter seven of my book covers the topic, along with recommendations. As we noted in our statement yesterday, CDD has given the staff at the FTC a ton of material since November, further making the case for immediate federal safeguards. There is so much at stake regarding the future of our (global) democratic culture and its relationship to online marketing. We hope others will join with us and raise the larger societal issues, in addition to the specific online ad marketplace concerns.

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Ad Age’s Perceptive Piece on Murdoch and WSJ Future

We think this point by Matthew Creamer deserves a highlight:

“A News Corp.-owned Wall Street Journal begs a question: In a world where the attention of consumers and hence advertisers is divided among video games, “American Idol” and LOLCats, can a business built solely to deliver news — especially long, serious articles about complicated topics — remain independent and successful? … The nation’s leading purveyor of business information, still an agenda-setter for the planet’s biggest economy, becomes a cog in a vertically integrated, multinational creator and distributor of entertainment, a machine engineered to pump out synergies such as “The Simpsons” movie or, more scarily, that aborted O.J. Simpson extravaganza, rather than Pulitzers… Sure, Mr. Murdoch will pump capital into the paper, allowing it to build out its international operation, but some are predicting that one effect of that bulking up could be to further his business goals, especially in China. And Journal reportage, now a means to the purist end of watchdogging the business community, will be called upon also to add more grist to that massive multimedia content mill, in the form of the Fox Business Network — which is already being positioned as more pro-business than CNBC, absurd as that sounds.”

from: “Stand-Alone News Brands Are Doomed.” Matthew Creamer. Advertising Age. Aug 6, 2007 [sub may be required]

As Murdoch-run WSJ Plans to compete with NYT, FCC Must Review its status as “national” newspaper

We have urged several FCC commissioners to support a review of the Wall Street Journal and its relationship to the New York City DMA. We believe that News Corp.’s plans to have the Journal compete with the New York Times, among other factors, require serious scrutiny by the commission. The broadcast-newspaper cross-ownership safeguard, we suggest, may apply in this case.

As the Journal reported on August 1, 2007:

“Just as vulnerable could be the New York Times, published by New York Times Co., and Pearson PLC’s Financial Times. In a May letter to Dow Jones’s controlling shareholders, the Bancroft family, Mr. Murdoch said he would want Dow Jones properties to “reach a broader domestic audience by expanding the content base.” He emphasized yesterday he “would not want to step back from any of the business coverage” but he would “like to add more general news,” repeating comments about plans to expand the Journal’s Washington bureau. He said that to accomplish his goal there “could be another four pages a day” for news coverage. A person with knowledge of his plans said Mr. Murdoch believes more general news and political coverage would make the Journal a stronger rival to the New York Times, which has a bigger share of consumer advertising.”

Ad Age reported [listen to Nat Ives video] that News Corp. is even considering adding sports news to the Journal, as it competes “head-to-head” with the Times.

As for calls for a national cross-ownership safeguard, we point to the recommendations in our new book which describe a new model for measuring media diversity in the digital era. But if new safeguards are to be enacted, foremost should be policies supporting sustainable community and national services that provide for both diverse expression–and news gathering/reporting–in the digital and multi-platform interactive era. In other words, we should be focused on adding what is missing and will still be ignored by the mainstream. They haven’t got it right so far–and won’t in the future.
Source for Wall Street J. quote: “Deal Will Test a Media Titan’s Instincts:
Rupert Murdoch’s Long-Sought Purchase
Of Dow Jones Could Change Business Journalism”
By MARTIN PEERS, SUZANNE VRANICA and STEPHANIE KANG
August 1, 2007; Page B1