Category: Department of Justice

Yahoo! Says its “Largest Publisher on the Web”

Part of our series on digital media marketing mergers, Microsoft-Yahoo! division. Via Yahoo!’s Sue Decker blog post:

“As the largest publisher on the Web that also leads in display advertising, and holds a strong number two in search, we maintain one of the world’s largest advertising networks and operate the Right Media Exchange. We’re truly in the best position to understand the evolving needs and demands of the entire ecosystem.” Ms. Decker explained that Yahoo!’s “cutting-edge” Apex platform “will enable all participants in the ecosystem to benefit:

  • Publishers will be able to better serve their advertisers’ needs by making it easy for publishers to sell, package, and distribute other publishers’ inventory alongside their own, giving advertisers extended reach to audiences across the Web through a centralized platform.
  • Advertisers will be able to spend more time on driving revenue and developing compelling creative for their audiences, rather than dealing with the complexities of ad generation, assembly, trafficking, and serving ads.
  • Advertising agencies will be able to streamline the buying process for multiple accounts across multiple publishers and allow for creative testing and campaign optimization, even as the campaign evolves.
  • And last but not least Advertising Networks will benefit from having a platform that connects publishers to the best advertisers for their site and audience, and advertisers to the best publishers with the most relevant audiences, thereby increasing both their reach in the process.”

Microsoft/Yahoo! privacy & merger watch: Yahoo! is "largest behavioral targeting network" according to its Blue Lithium subsidiary

Yesterday, the behavioral targeting firm and Yahoo! subsidiary Blue Lithium gave a lunch time presentation at the OMMA Behavioral Targeting conference. The Yahoo!/Blue Lithium representatives discussed how “Yahoo! was the largest behavioral targeting network,” even prior to its acquisition of Blue Lithium. They talked about the “amount of knowledge we have about users,” including the “deep information” on its “hundreds of millions” of users. Yahoo!, they claimed, had a treasure trove of user data for its targeting “engine,” including search clicks, page views, ad views, and clicks. Yahoo!, they explained, “has spent time and money” to build an ad targeting system that can use all this data, with 400 distinct “categories and models.” Yahoo! has “scale” and “unprecedented reach.” They made a point of noting that [for now], Google doesn’t use behavioral targeting. The representatives also boosted about Blue Lithium’s retargeting capabilities, and that they can target with “specific messages,” and “identify the people that clicked.”  The retargeting is followed up with a “call to action” they noted.

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Google & Microsoft’s Antitrust Teams: the Digitally Well-Connected

Who will represent the interests of the public as Google and Microsoft (and others) scoop up large chunks of the digital eco-system? Here’s an excerpt from Legal Times [“Microsoft Lawyers Map out the Bid for Yahoo.” Feb. 11, 2008. reg. required] on the former federal antitrust officials working for Google and Microsoft:


“Google does have a team of veterans representing its interests in the Yahoo bid. David Gelfand, a Washington antitrust partner at Cleary Gottlieb, and Susan Creighton, Washington antitrust co-chair at Wilson Sonsini, both helped Google get its merger with DoubleClick past federal regulators at the Federal Trade Commission last year. And Creighton was director of the Bureau of Competition at the FTC before joining Wilson Sonsini in 2006.

Microsoft, too, has a connected advocate in [Charles] Rule. When he goes to the Justice Department, he won’t need introductions. Rule worked with Thomas Barnett, the head of the Antitrust Division, while the two were partners at Covington & Burling. Rule has also worked with Barnett’s deputies. David Meyer, now deputy assistant attorney general for civil enforcement, served as Rule’s special assistant in the Antitrust Division in the late ’80s and then worked with him at Covington. (Skadden partners Michael Weiner in New York and James Venit in Brussels, are representing Yahoo on antitrust matters.)”

Microsoft’s quest for Yahoo!—Follow (Your!) Data…or Hi, Ho, Hi, Ho, it’s off to harvest your data we go

We will be covering the proposed takeover, from both the online advertising business and privacy side. Here’s a revealing tidbit from BusinessWeek on what Microsoft hopes to achieve from a deal: “What’s more, the company is hoping to bring together Yahoo’s research and development staff, who’ve done innovative work in online advertising auction theory and data-mining, with its own online lab.”

Yes, a key to analyzing this deal–if it happens–is what are the consequences when Microsoft’s adCenter merges with Yahoo!’s Panama and other data mining assets. That’s why it’s important to keep a spotlight on what Google and Microsoft, among others, plan to do. Here’s an example of where we are headed, courtesy of Microsoft’s adLab demonstration this week [via Clickz]: “Online advertising has been centered around keywords for too long,” said Tarek Najm, an engineer for Microsoft’s advertising and business intelligence systems, adding the “next wave of advertising is going to use new algorithms and technologies” that display ads based on consumer intent.”

Microsoft’s Digital Ad Vision: Part 2

From this week’s Microsoft’s “Strategic Update [Feb. 4, 2008]. Excerpt:

“Advertising is a key part of a number of the opportunities that I talked about, and the key probably right now for us to continue to grow our advertising footprint starts with what we’re doing with search and portal. We have made good progress in that business. It is growing. Since our start four years ago, we now have what I would call a very credible search product, a very credible advertising platform. We’ve got good trajectory. This was, in some senses, the best time for us to ask ourselves, what else can we do to make ourselves even more effective in this business?
And in a sense, the fact that we’re in a stronger position now than we were 12 months ago actually makes this an easier acquisition to consider, even though, as I said in my letter to Jerry Yang, we did have discussions a year ago with Yahoo! about combining the businesses. People say, what are you doing here? Well, what we’re trying to do is take some momentum that we have and ask, how do we really increase that momentum even further? What else can we do?
And the truth is, either on our own efforts or, hopefully, now that we’ve proposed this acquisition, on our efforts merged together with Yahoo!, there are really four things we get a chance to work on. First and foremost is to expand our R&D capacity. We’re going to have to innovate like crazy to get the position want to have in this market. We’re going to have to innovate in the ad platform. We’re going to have to innovate in core search. We’re going to have to invest in new, emerging user experiences —mobile, social media, video, entertainment experience. We need the R&D capability to really compete with the market leader.
We continue to hire people and transfer people. But in fact, bringing together Microsoft and Yahoo! will allow us, because of the fantastic engineering talent both at Yahoo! and at Microsoft, we get more capacity more quickly. We get a chance to not have to think so much about how do we not use the capacity we have, but how do we deploy this incredible team to make sure that we’re doing everything and more that the market leader might be doing?”