Category: Media Mergers

From Doubleclicks’ March 2007 study on what it collects via broadband video (my italics):
“DoubleClick…announced the results of its recent research of online video ad placements, illustrating that video is a highly effective format for online advertising. Findings show that audiences have high interaction rates with video ads, users click the “Play” button more than they click on image ads, video ads are typically played two-thirds of the way through and video ad click rates are far higher than those of image format ads.

DoubleClick conducted its analysis of more than 300 online video ad campaigns that were placed by more than 130 advertisers over a four-month period in 2006… The interaction rate is the “all in” metric, including the sum total of all interactions that people have with the video ad units. Those include mouseovers, expansions, interactions with the video control buttons, clicks and other events…. “The best standard data you get on audience measurement of TV commercials is limited to reach and frequency or specialized brand studies. However, online video metrics available today, like interaction rate, play rate, video completion rate and so on, give advertisers much greater insight into how consumers are actually engaging with the ads and their brands,” said Marianne Caponnetto, Chief Sales and Marketing Officer for DoubleClick.”

And from Doubleclick’s Dart Motif product:

“Deliver an emotional brand experience with video.
Convey your brand message with believability and emotion by adding Video to your Motif rich media ads. Ads including Video deliver nearly three times higher brand awareness and message association, and more than 100 percent higher purchase intent and online ad awareness than non-rich media ads.”

“Audience Interaction Metrics: Motif’s exclusive Audience Interaction Metrics Package lets you gather data on more than 100 unique interactions in every creative unit including multiple exit links, counters, timers and video metrics. You’ll automatically get metrics on how long each ad was displayed or how the viewer interacted with the ad. Plus, you can customize additional events to track based on your creative concept.”

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Scott Cleland on Google-Doubleclick: `Competition Foreclosure’

We agree with much of Mr. Cleland’s analysis that the Google acquisition of Doubleclick raises serious concerns about the future of the digital marketplace. But, unlike Scott, we believe the deal has critical antitrust implications (and has nothing to do with net neutrality). Here are key excerpts from his longer piece:


“Just as Microsoft vertically-leveraged (bundled/tied) its operating system dominance to dominate the office applications market via the Windows platform, Google apparently looks to vertically-leverage (bundle/tie) its keyword search dominance with DoubleClick’s leadership in online banner/video display advertising, and with its Google-YouTubedominance in video search…This vertical combination reportedly could give Google-DoubleClick upwards of 80% of the overall market for advertisements provided to third-party websites. Just like Microsoft became the default office applications platformfor email, e-calendars, word processing, spreadsheets, and PowerPoint, for any user, Google has obvious designs on becoming the default Internet advertising broker/platform for: keywords, website display ads, and TV, radio, newspaper/magazine advertisingfor the average large advertiser… If Google can gain the first-mover advantages of offering advertisers the super- efficiencies of cross-media-platform advertising optimization, i.e. a vertically-integrated/tied advertising platform, individual advertising mediums and companies will largely be at their (anti-)competitive mercy going forward. Game. Set. Match…The DoubleClick acquisition, like Google’s acquisition of YouTube, is really all about achieving competitive foreclosure long term. Google’s “partnership’ strategy is also all about competitive foreclosure…”

U.S. antitrust regulators:

Just a pointer to the U.S. officials who will be reviewing–and hopefully denying–GoogleClick.

Excerpt: “XM Satellite Radio and Google Deliver Targeted Advertising to Satellite Radio Listeners

MOUNTAIN VIEW, Calif., and NEW YORK, NY, August 2, 2006 – Google, Inc., today announced that it has reached an agreement with XM Satellite Radio, the nation’s leading satellite radio service with more than seven million subscribers, (NASDAQ: XMSR) to introduce and make available commercial advertising inventory on XM’s non-music channels to Google’s extensive advertising base through its dMarc media network (www.dmarc.net). As part of the deal, Google advertisers will now have a simple, automated way to reach XM’s millions of subscribers nationwide and XM will have access to Google’s large and small advertisers to offer relevant, targeted messages to their subscribers. After months of trials, the new platform is now in full production giving Google advertisers distribution through XM Satellite Radio…Google AdWords’ customers will be able to place terrestrial and satellite radio spots when the dMarc platform is integrated into AdWords targeted for fourth quarter of this year.”

and from Reuters: Google, Clear Channel Ink US Ad Deal [4/16/2007]
Web search leader Google has broken into radio with a multiyear advertising sales agreement with the largest U.S. broadcaster, Clear Channel Radio, the companies said on Sunday.

The deal, long anticipated by the radio industry, marks the progress Google is making as it expands into off-line media, not just in radio, but also television and newspapers—even in the face of resistance from some traditional media players.

Last week it revealed a parallel deal to supply satellite TV broadcaster EchoStar and its 13 million viewers.

Clear Channel said it has agreed for Google to sell a guaranteed portion of the 30-second spots available on its 675 radio stations in top U.S. markets, in a bid to expand the universe of local radio advertisers to Google’s online buyers.”

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Doubleclick’s “Performics” division: The “largest search-marketing firm” says Ad Age [4/13/07]

“Performics, the performance-based marketing division of DoubleClick, provides online marketing services and technologies for leading multi-channel marketers. Together, Performics and DoubleClick offer clients an unparalleled range of marketing solutions and are uniquely positioned to compare effectiveness across marketing channels for valued clients. Advertisers benefit from Performics´ custom approach to Affiliate Marketing, Search Engine Marketing, Data Feed Marketing and Online Lead Generation programs. Performics’ proprietary tracking and reporting technology platform, advanced market expertise, and active account management enable clients to acquire and reacquire online customers. Performics is the only recognized industry leader providing both Search Engine Marketing and Affiliate Marketing Services.” from About Us

Clients: “More than 300 clients, including America Online, Blair Corp., Bose, Cingular, CompUSA, Eddie Bauer, Fairmont Hotels, HP Shopping, J. Jill, Jos. A. Banks, Kohl’s, L.L. Bean, Motorola, OfficeMax, PC Connection, RedEnvelope, My Sony, Quickbook, Staples, Verizon Wireless, and Wyndham Hotels.”

FeedLab: “Performics developed FeedLab to automate cross functional processes and scale data feed marketing programs… FeedLab not only scales the delivery and optimization of data feeds, but the technology integrates input from “paid search” results, search queries and third-party information to improve the relevancy of the data feed and enhance an advertiser´s results…FeedLab also manages an advertiser´s data feed with comparison shopping engines, Web publishers and participants in the Performics affiliate network. There are currently more than 100 online publishers utilizing client data feeds through Performics.”

Attention European Commission: Doubleclick’s Own Warning About Google’s Growing EU Clout

In Doubleclick’s “The European search advertising landscape, 2006” report, they note that (excerpts):

“Google dominates the continent

Google dominates the search market in Europe, and this is especially true so outside the U.K. In Germany, Google’s market share approaches 90%. “The game in Europe is Google,” declared Andy Atkins, CEO of WebCertain…Google sites are also visited by a greater proportion of visitors in Europe (75%) than in the US (60%)…in July 2006, Google sites were the most visited online destinations in Europe with over 150 million unique visitors in that month. The dominant search engines in Europe are also the largest media owners—Google, Yahoo and MSN…The European online ad market is concentrated in the hands of a few major players.”

Research report press release

available as pdf via Google UK homepage

What Doubleclick also knew about you: Abacus Catalog Alliance

“With more than 3.5 billion transactions from more than 90 million U.S. households, the Abacus Alliance Database is the largest proprietary database of consumer transactions used for target marketing purposes. Abacus combines the power of this shared data with advanced statistical modeling to help Alliance participants improve profitability and increase market share.

With the Abacus Catalog Alliance, marketers can leverage transactional data to identify new customers and optimize the profitability of their existing customer base. Abacus data allows them to understand what customers actually buy, not what they say they buy. No one else can offer them the same advantages.

Alliance membership is for sophisticated marketers who are looking for a large universe of quality names and proven modeling techniques to increase their revenue and profitability.”
From: Doubleclick UK (accessed April 15, 2007)

“The Abacus Alliance database contains transactional data with detailed information on consumer and business-to-business purchasing and spending behavior. Over the past ten years, transactional data has proven to be the most effective predictor of future buying behavior. By combining transactional data with advanced statistical modeling, direct marketing can help marketers target the potential consumers that are most likely to buy their products or services.”

From: Direct Marketing (Doubleclick UK) Accessed April 15, 2007

PS: Aliance Data acquired Abacus in December 2006. But the Doubleclick UK site contains the above information as of today.

Is there Still an Antitrust Division At FTC?: The Fox, NBC, Time Warner “NewCo” Deal

Shouldn’t Antitrust alarm bells be ringing about the new online video service being launched by NBC/Universal, News Corp./Fox, and Time Warner/AOL/Advertising.com? We think so. Time Warner’s interactive ad delivery subsidiary–Advertising.com–is handling “all the advertising for the new joint venture video service. It will provide display and video ad management and fulfillment for the new video site and for the dedicated video player embedded on that site as well as across its distribution partners,” noted paidcontent.org. The NewCo service will be, says Peter Chernin, News Corp pres. …”the largest advertising platform on Earth.” Adding to what should be serious scrutiny are the deals involving such content partners as Microsoft.

An alliance between NBC, Fox and Time Warner. Do the sleeping watchdogs at the FTC–or for that matter, the Democratically-controlled Congress–ever wake up? Or are they too busy dreaming about their next job in show biz? It’s time to get serious about both the structure and role of the online advertising business, especially as it fully embraces video distribution.

PS: Here’s a little something to help the FTC folks along: “Sales of the venture’s advertising inventory, adjacent to thousands of hours of video programming and spread across a network of distribution partners, will be shared between the new alliance and its media partners.” Oh, and since Google also owns 5% of Time Warner’s AOL unit and is a partner with Fox/News Corp. for MySpace/Fox Interactive for ad sales, we think such an investigation would be very interesting!

FCC Revolving Door for Well-Connected Media Biz “Super Lawyers”

Last Sunday,included with the New York Times, was the special ad supplement “Washington DC Super Lawyers 2007.” Listed were the “Top Attorneys in the Washington, D.C., metro area.” An ad supported homage to some of the key power brokers, the supplement included a listing of communications attorneys.

Not surprisingly, among the “top ten” of all the Capital’s Super Lawyers stood Richard E. Wiley of Wiley Rein. The former chair of the FCC (1974-77), his firm has represented practically every media and telecom company, including the NAB, Time Warner, Clear Channel, CBS and Verizon.

Here’s the “Communications” Super Lawyers, and, in many cases, their former roles in Congress or the FCC.

Kathleen Q. Abernathy, Akin Gump. Former FCC Commissioner, 2001-2005
Jonathan. D. Blake, Covington & Burling
Richard J. Bodorff, Wiley Rein. Former counsel at FCC (1974-77)
James L. Casserly, Wilkie Farr & Gallagher. Former senior legal advisor to a Commissioner (1994-99)
Gary M. Epstein, Latham & Watkins. Former FCC official, inc. chief of Common Carrier Bureau (1981-1983)
Charles D. Ferris. Partner, Mintz Levin et al. Former chair of FCC (1977-1981)
Patrick J. Grant. Arnold & Porter
Scott Blake Harris. Harris Wiltshire & Grannis. Former chief of FCC International Bureau (1994-96)
Frank R. Jazzo. Fletcher, Heald & Hildreth
Regina M. Keeney. Lawler Metzger Milkman & Keeney. Former chief of several FCC bureaus and senior counsel for communications at U.S. Senate Commerce Committee
William T. Lake. Wilmer Cutler Pickering Hale & Dorr. Former U.S. State Department official
Andrew D. Lippman. Bingham McCutchen.
Francisco Montero. Fletcher, Heald & Hildreth. Former FCC official
John T. Nakahata. Harris Wiltshire & Grannis. Former chief of staff to FCC chair and Congressional aide
Lewis J. Paper. Dickstein Shapiro. Former FCC chief General Counsel
Henry M. Rivera. Wiley, Rein. Former FCC Commissioner (1981-1985)
Norman M. Sinel. Arnold & Porter.
Cheryl A. Tritt. Morrison & Foerster. Former chief of FCC Common Carrier bureau
Philip L. Verveer. Wilkie Farr & Gallagher. Former FCC, FTC, DOJ official.

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.