Trade Analyst on Google/Yahoo!: Google becomes “monopolistic gatekeeper”

From Diane Mermigas June 18, 2008 column in Online Media Daily [excerpt]:

excerpt: The deal puts more than 90% of the search ad market in Google’s hands, and raises the likely prospect that Google and Yahoo will work together on display ads. Executives from both companies have suggested as much, calling the partnership “good for competition;” when they should have said that it is “good for the competition.” The deal is a Trojan horse that makes Google the monopolistic gatekeeper, sucking the democracy and free capitalistic process out of advertising and e-commerce. The nonexclusive clause in the deal seems meaningless…Deutsche Bank, CitiGroup and Merrill Lynch are among investment banks reducing their estimates on Yahoo in anticipation of its advertisers shifting their business to Google. “This effectively signals the end of Yahoo’s competitive entry in the paid search business and signals to advertisers /agency customers to simply work with Google to purchase ad impressions from Yahoo longer term,” said Deutsche Bank analyst Jeetil Patel.

Congress and Anti-trust Officials Must Take Action on Google-Yahoo! Deal: Competition and Privacy Issues at Stake

The government must take swift action to prevent the creation of a digital combine that merges assets and services of the first and second leading online search advertising companies—Google and Yahoo!
Google is the country’s (and world’s) leading search firm. Yahoo is ranked number two and says it is the foremost online display advertising company. This combination potentially threatens user privacy, as more data (including behavioral and mobile) about consumers are shared or pooled by the two leading online giants. Competition in the online ad sector—already weakened by a series of takeovers and acquisitions—is seriously threatened. This deal will have a significant impact on the advertising industry, including agencies. Both Google and Yahoo also provide critical search advertising services for many of the nation’s leading newspapers. Congress will need to explore how this deal impacts journalism, especially at a crucial marketplace juncture for the traditional media industries. Yahoo is permitting Google to extend its reach into one its significant assets–paid search. Shareholders will also suffer, as Yahoo! will be viewed by advertisers as a less effective means to target consumers.

Statement on behalf of the Center for Digital Democracy

Hasn’t Google Heard of Separating Content from Advertising? YouTube Fostering Stealth Infomercials

Google is now permitting creators of YouTube content to sell their own ads (with a split going to Google). But what’s alarming is that some of the videos on YouTube are being produced in cooperation with advertisers, including featuring its products in the program. For example, Advertising Age reports that “Revision3, the online-video-production company…is selling advertising on YouTube, starting with GoDaddy, a sponsor that’s regularly integrated into the content of its shows.” Revision3’s website explains that “it has attracted a wide-range of top advertisers including Sony, Netflix, Dolby, Microsoft, IBM, HP… Verizon and FX Networks. Advertisers enjoy a unique bond with the audience via customized message integration and host mentions that deliver phenomenal results.” Revision3 lists among its “success stories” the following:

Verizon VCast: As part of its launch of a mobile phone-based streaming video service, Verizon sponsored Diggnation. As part of the sponsorship, the hosts interacted with the VCast service during an episode, and discussed how the service worked and what it did. Awareness skyrocketed. According to Amanda Donelly, the Media Supervisor at Verizon’s agency Moxie Media, the results were “seriously way better than we had ever anticipated”.

Congress, the FCC, FTC, and media reform advocates will need to address the purposeful blurring of content and advertising in online video (broadband and mobile). But industry also must enact meaningful rules regulating such practices. That’s where Google comes in. As the global online advertising market leader, Google needs to set the highest standard for ethical business behavior. Enabling stealth informercials guised as entertainment tarnishes the reputation of YouTube.

source: “YouTube: You Created the Content, Now Sell the Ads.” Abbey Klaassen. Advertising Age. June 9, 2008 [sub required]

IAB’s Lobbying Against Privacy Safeguards: Trade Group Will Add New Members to Help Fight Consumer Protection Legislation

The trade lobbying group Interactive Advertising Bureau (IAB) plans to add new members to help it generate “grassroots support against proposed legislation in New York and Connecticut that would ban the collection of data about online consumers without a person’s specific consent.” According to ClickZ, the IAB will create a new low-dues membership structure which will enable smaller online advertisers to swell its ranks. What is IAB’s pitch to its prospective members about privacy safeguards offered by state legislators in New York and Connecticut? ClickZ says that “[T]he IAB contends that the proposed measures would have a disproportionate negative impact on small publishers that rely on ad networks to manage advertising sales.”

The IAB’s leadership is off on a irresponsible mission to persuade online marketers and the public that privacy rules would “kill the web.” Such an self-serving view of why privacy rules are required in the age of online marketing will only further diminish the credibility of the IAB.

ATT: DoJ, EC and Congress: Yahoo!’s own claims should raise alarms about a Google or Microsoft deal

No one should sit by and let either Google or Microsoft carve-up or take-over Yahoo! without a serious examination of the competition, privacy, and other consumer protection issues. This week, Yahoo! ran a four-page ad inserted in Advertising Age. Here’s some of Yahoo!’s own copy for regulators and the public to ponder:

“Yahoo! delivers the largest audience in the U.S.-the most 18-34 year olds, the most 35-54 year olds, the most women….Today, Yahoo! reaches over half the world’s Internet users. And with our growing network of premium publishing partners, including over 625 leading newspapers, we’re working with the other half…Our insights and understanding of our users lead to smarter targeting, so we can connect the right audience with the most relevant message–yours…With more ways to connect to your customers more deeply than ever, the future is wide open.”

From Yahoo! Advertising Age insertion. June 2. 2008 entitled: “What Happens When You Can Connect To More Than 550 million People From Over 170 countries Who Spend 2 Billion Hours Each Month In One Place?”

Google Opens its Network to 3rd Party Ad Servers, but Fails to Candidly Address the Privacy Issues

Google announced Tuesday that it [our emphasis] “is accepting third-party advertising tags on the Google content network in North America. This will empower advertisers to work with approved third parties to serve and track display ads, including rich media ads, across the Google content network through AdWords, giving them more options, flexibility and control over their campaigns.” Among the companies it lists that can track us through the Google network includes its own DoubleClick, as well as Eyeblaster, Eyewonder, Pointroll, Unicast, Dynamic Logic, and Interpolls.

Google has created a three-part video series on YouTube to “explain” how ad serving works. But like so much of Google’s privacy PR, it doesn’t really explain what the goals are of its expanded ad service. It also attempts to minimize the very real privacy concerns. Google uses its online ad industry Orwellian-like Doublespeak to suggest that the profiling and targeting of users is “enhancing their web experience.” Google could have included in its YouTube script what it is telling prospective YouTube ad sales persons: “that Google technology enables the world’s biggest advertisers to enjoy immediate and accountable communication with the consumer…to drive revenue… to top-tier brand advertisers and agencies…[via]… a next-generation advertising platform.” It could have said that its expanded online ad platform was designed, as its job announcement for a New York-based “Google Financial Services Account Executive” states, to help “the biggest financial services companies in the world. This includes investment, credit card, tax, banking and insurance companies.” Or as it explains in its “Google entertainment account executive” job announcement, “you’ll help to provide integrated, cross-platform advertising solutions for media and entertainment clients including TV, movie, gaming, music and web publishing companies.”

Google’s blog announcement for the opening up of its network to 3rd party ad servers, and its three-part series, could have detailed the range of data being collected and tracked by its DoubleClick and now other companies. That would include DoubleClick’s “Rich Media’s Audience Interaction Metrics package,” which “lets you analyze data on more than 100 unique interactions in every creative unit including multiple exit links, counters, timers and video metrics.” Or Eyeblaster’s “advanced …powerful tracking and optimization capabilities” that examine “unique viewer behavior– why look at impressions and clicks when you can look at the behavior of individual customers.” Or Unicast’s “User Engagement Index (UEI), that measures a user’s interaction with a rich media ad and provides a score made up of key engagement metrics.” Or what its now 3rd party approved from Eyewonder collects, such as “track all video interactions, rich media interactions, brand interactions and time, and …Custom tracking… to also measure metrics critical to your specific campaign.”

Google really requires both a privacy and online marketing ombudsman, to say the least. They have a very hard time being straight-forward about what information about us is being collected, how it’s really used, etc. Perhaps independent observers and consumer advocates whose mission is to help the company be more honest with itself, its employees, and its users would help. Meanwhile, we will just have to help regulators, policymakers, and the public better understand what Google isn’t really telling us.

PS: This announcement also has implications for mobile privacy. We think this quote from Mobile Marketer is very telling (hey, Google. Put him on your GoogTube channel!): “As mobile advertising evolves and matures, advertisers will demand consistent, in-depth analytics and immersive consumer engagement frameworks,” Mr. Rahav said [Amit Rahav, VP, Marketing, Eyeblaster]. “…To be able to retain client confidence and quality of user experience, Google defined a process for certifying trusted partners like Eyeblaster and other companies. Defining such rules of engagement creates the win-win ecosystem that helped scale Web advertising and stands to do the same for the mobile world.”

PPS: Perhaps Google should have addressed this, from its new 3rd Party approved partner Interpolls: “Interpolls is the only rich media company providing a complete end-to-end suite of integrated marketing solutions. In addition to rich media advertising, Interpolls provides clients with interactive promotions, live on-air voting, site polling, online sweepstakes and more. All of Interpolls services can be integrated into its proprietary platform, offering customers tremendous convenience while maximizing reach, awareness and results. “Expanding our distribution network to include the Google content network was a critical piece needed to provide our clients with the industry’s largest rich media distribution to reach their customers and prospects without limitations,” said Peter Kim, CEO and president, Interpolls. “The agreement opens the door for our clients to increase their distribution through the Google content network, and provides Google publishers and advertisers access to our innovative rich media advertising and widget solutions.”

PPPS (and we promise this is the last one!). Google also announced that several research firms were now allowed to work with its network and, we assume, help “measure performance” of Internet ads. They include Dynamic Logic, IAG Research, InsightExpress, and FactorTG. For example, IAG (now owned by Nielsen) says it “is the only panel-based measurement service that provides continuous evaluation of Internet ad performance and a direct comparison to TV ad effectiveness.” In another words, to help grow Google’s ad business it has, understandably, opened up its service to the network of tracking, analysis, and interactive media delivery services which comprise the world of marketing. But, we believe, Google should have explained all this clearly to users, and not–in our view–gloss over what this all means.

Google’s YouTube now offers advertisers ability to do “Buzz Targeting”

excerpt from YouTube May 13, 2008 press release: “As part of our continued efforts to experiment with new ways to provide value to YouTube advertisers, today we’re announcing one such new product: buzz targeting…YouTube’s …algorithm…determines which YouTube partner videos are quickly becoming popular on the site and about to go viral. The algorithm looks at several factors, such as acceleration of views, favorites, and ratings activity, and then allows advertisers to target their ads specifically to these videos on YouTube.

“Every advertiser hopes that their campaign will to be the next big viral hit online, and they come to YouTube to reach the millions of video viewers who are on the site everyday,” said Rajaraman [Shiva Rajaraman, YouTube Product Manager]. “Buzz targeting lets them do both at the same time. They associate their brand with the hottest content of the day, while reaching the most engaged users in our community.”

and from Online Media Daily: “YouTube buzz targeting works on an algorithm that looks at a number of viewer activities, including how many times a video is chosen as a favorite, how favorably it’s rated, and how quickly it picks up views, to determine which clips are about to “go viral.” Advertisers can capitalize on the momentum by choosing to run overlay ads on these videos, with the possibility of combining buzz targeting with other options like time of day, gender and category targeting.”

source: Advertisers Get Buzzed On YouTube With New Targeting Capability. Tameka Kee. Mediapost. May 14 2008

Google’s Mobile Plans include Cookies for Ad Targeting

At last week’s FTC hearing on mobile marketing, we pressed several industry representatives to confirm that the data tracking, profiling and targeting system we now have online is being migrated to mobile. That’s what eventually we were able to get at least one mobile marketing panelist to confirm.

Meanwhile, we have learned that Google has made presentations to advertisers about its mobile marketing capabilities. It appears that mobile cookies are part of their targeting marketing plan. Google told advertisers that “Google provides mobile conversion tracking on phones that support cookies. Google can measure clicks, impressions and conversions for all campaigns.”

Google needs to explain to the public how its cookies and mobile ad tracking and targeting will work, including what safeguards it plans. By the way, we also think it’s interesting to place Google mobile in the context of its DoubleClick subsidiary. DoubleClick mobile “is an ad delivery system for mobile websites that delivers dynamic, interactive ads to mobile web pages based on specific criteria as determined by you. It supports a wide range of devices and boasts a full management and reporting suite. Now publishers can deploy mobile advertising with the same confidence and control as online display ads…Report on impressions, clicks, jump pages and third-party metrics…Full reporting for all dynamically displayed ads.”

Google’s Android does, it turns out, dream of electric ads via cookies.

IAB’s Response to Calls for Consumer Privacy Rules: Hire More Lobbyists to Protect the “Wild West” of Data Collection & Ad Targeting

Granted, the IAB’s Washington, D.C. lobbying shop, opened last year, is a small operation. Now the IAB is in the process of hiring a second person for the office. No doubt IAB wants to protect the data collection and micro-targeting digital turf of its members. Former Tacoda and Time Warner exec. Dave Morgan perhaps revealed why the political stakes are so high for IAB members such as Google, AT&T, Comcast, Time Warner, Disney, CBS, NY Times, Washington Post, etc. in Media Post. As Morgan explained, “.. Everybody now knows that data is the fuel for growth. Everyone is starting to mine it and make it available to third parties…The big four (Google, Microsoft, Yahoo and AOL’s Platform A) are all opening up their networks and systems to leverage third-party data; so are the ad servers like WPP’s 24/7 Real Media; and so are the ad networks…We’re moving into a wild, wild west in monetizing real-time marketing data, and we’re going to need many more people that know how to do this…As we see this data take on more value and play a bigger role in our industry, the public policy implications are going to become much more pronounced.”

Yahoo! merger or deal watch. privacy division: Yahoo! may expand behavioral targeting

All these privacy, data collection and marketplace competition issues will need sorting out. Yahoo is acquiring “Tensa Kft., more commonly known as IndexTools…IndexTools will add more insight and metrics for online campaigns…” One search column explains the significance of the deal is the “…huge benefit that Yahoo will have is the ability to put their pixels (data collection mechanism) around the web and hence collect data. Which, in turn, will help their Behavioral Targeting efforts, which are currently limited to Yahoo portal only. This is huge!!!