Category: Global Digital Marketing

Google, the Global Youth Obesity Crisis & its “Branded Entertainment” Division Deals with Pepsi and Burger King

Google’s top executives and corporate-responsibility concerned investors should consider the consequences of the online ad company’s major promotion of Burger King and Pepsi. Google is broadly distributing two new online programming series backed by either Burger King and Pepsi via its “branded entertainment” division. A new Pepsi-backed show called Poptub, notes paidcontent.org, “resides on its own YouTube channel and is distributed through Google AdSense (via “Gadgets” or widgets), increasing the number of eyeballs for potential advertisers. Ad revenue will be split between Google, Pepsi-backed Embassy Row, and the website that hosted the clip.” CNET reports that Poptub features “perky hosts, amusing videos, promotional interviews, and a prominent Pepsi sponsorship.”

Google’s Burger King backed “Seth MacFarlane’s Cavalcade of Cartoon Comedy” is a huge online hit, Mediaweek reports. The YouTube based series “generated 14 million total views since their Sept. 9 debut across various syndication partners…One short, Super Mario Rescues The Princess, has amassed over 6 million views on YouTube alone…the Cavalcade channel was YouTube’s most popular during the week ending Sept. 12, generating millions of views in less than 48 hours… The first 10 of the MacFarlane-produced shorts are being sponsored by Burger King. The fast food company’s branded channel, youtube.com/bk, is now the second most popular sponsored channel of all time on YouTube.”

Hollywood Reporter explains that “Over at Burger King’s YouTube channel, a new application allows consumers to dub their voices in over the animation of select “Cavalcade” videos.”

Google role as a facilitator of unhealthy food products will become part of the global youth obesity and public health debate.

The Financial Crisis, Debt, Consumer Society, Digital Advertising & a new Consumer Protection Policy Agenda

Reading a review by John Cassidy on the insightful new book by George Soros [New York Review of Books], it’s evident that we must also address our overall consumer culture. Too easy credit, deregulation, and the promotion of a `boom,’ never gloom’ ethos has contributed to the global economic mess. It’s clearly time we shift our priorities, so that spending and consumption are placed in a healthier balance. That’s why the emerging generation of interactive advertising and marketing technologies should be on a new proactive consumer protection policy agenda.

Our communications system around the world is in the midst of a crucial transition. Digital media–broadband video, social networks, mobile content–are ushering in a new set of content services. Most of new media is fueled by the forces of interactive advertising. The messages will be flowing non-stop to promote products and services. But such a new “media and marketing ecosystem,” as advertisers have termed it, must have reasonable regulatory safeguards. Digital advertising requires online privacy and other relevant consumer protection policies. We should not permit highly targeted and more precise marketing messages to permeate our lives, unless consumers/citizens are firmly in control.

Digital marketing communications promoting behaviors of consuming need to be transparent, understandable by the average person, and created in an above-board way (so the brands working on neuromarketing and even behavioral engagement strategies better take notice). The ad industry bears some responsibility here for what has happened economically. We all do–for either doing too little or not enough. But this is an important time for serious reflection to help put our lives–and the planet–in healthier balance. That’s why action is required by the next Congress and states. Here’s an excerpt from the review of the new George Soros book:

“As described by Soros, the “super-bubble” developed over the past quarter-century and is the result of three underlying trends: globalization, credit expansion, and deregulation. By globalization, he means not just expansion of trade in goods and services, and the rise of China and India, but the US’s emergence as the world’s biggest debtor. In the past couple of years, he reminds us, the United States has been running a current account deficit of more than 6 percent of GDP—a level usually associated with a developing country about to suffer a foreign exchange crisis…In 1980, the total amount of credit market debt outstanding in the United States was roughly the same as the GDP: by 2007, it had risen to about 350 percent of GDP. The bundling of residential mortgages into widely traded securities—”securitization”—played a significant role in this transformation, but so did increased federal lending resulting from large-scale budget deficits, the securitization of credit card debt and auto loans, and an expansion in corporate debt issuance.”

Attention Google & Tim Armstrong: `Town Hall’ on Proposed Yahoo Deal Must Include Consumer, Privacy and Civil Society

Ad Age reports that Google sales exec Tim Armstrong “is calling for a town hall meeting with the Association of National Advertisers.” [sub. may be required]. The ad association has come out against the proposed Google/Yahoo search ad combine. But such a meeting shouldn’t be a closed door `only the ad biz’ event. By now, Google’s key execs should recognize that the search and online ad market is connected to such issues as privacy, the state of competition, and the future of funding diverse content online. This isn’t an issue that should be constructed by Google as an insider deal. The full range of public policy issues must be debated–including the participation of independent advocates and academic experts to discuss privacy and related concerns. Let Google, the advertisers, critics, supporters, and those in-between have their say–and make it available prominently on YouTube.

MySpace, Social Networks, Massive Data-Mining, Privacy & Interactive Advertising

Policymakers–including state attorneys-general, the FTC and EU officials– are failing to examine how social networks such as MySpace are utilizing advanced data mining techniques to track, analyze, and target millions of unsuspecting users (including, likely, adolescents). For example, MySpace (and other Fox Interactive Media properties, FIM) are using data warehouse and parallel computing techniques that “is enabling a new set of applications and services that previously were simply neither possible nor practical at this scale.”

MySpace and other FIM entities are engaged in daily “real-time” analysis of massive data sets from its 190 million active users. Such data analysis is driving FIM’s “advanced targeted advertising systems.” So all the MySpace “user-generated content” becomes fodder for the analytical ad-targeting. Such data collection must be under the full control of the user–they need to know how and what is being collected, how its used, what inferences are made, the range of ad and marketing targeting linked to the data, etc. It’s time social media marketing, as the industry calls it, draws the attention of policymakers, including the U.S., Canada, and in the EU.

Embedding Brands in Videogames

The growth of in-game marketing should be on the public policy radar. It’s something we have been following with food and beverage marketing targeting children and adolescents. Read this excerpt from a Double Fusion ad for a regional sales manager. Then ask yourself: does this business model raise consumer protection and public welfare concerns.

excerpt: “Want to place brands in games? Double Fusion’s Core Games Group is looking for a passionate gamer with the desire to sell marketers on the sexy allure of the gaming console as a means to reach the increasingly allusive 18-34 Male demographic. The Regional Sales Manager, Core Games Group will be responsible for using Double Fusion’s multi-platform approach (static in-game advertising, dynamic in-game advertising, gaming tournaments, downloadable content, co-marketing partnerships, etc) to in-game advertising to meet marketers’ campaign objectives in the most engaging ways imaginable.

…Double Fusion connects brands with audiences through the immersive medium of games…our integrated marketing solutions continue to inspire Fortune 500 companies to get in the game with groundbreaking advertising campaigns…Chance to make media history in a “rising star” category – interactive entertainment is one of the fastest growing categories across female audiences and advertisers are just beginning to realize this huge market potential…Our unique media capabilities across 2D and 3D games allow advertisers to benefit from a level of interaction that’s simply not possible with traditional advertising. In fact, research from Nielsen has shown the superior recall and purchase preference results that 3D programs deliver. The best of both worlds – we’re well-funded with financial backing from top-tier venture capital firms plus media giants such as Time Warner and Hearst…”

A Op-ed Supporting a Google/Yahoo Deal by a Lawyer Who Recently Represented Google?

Glenn B. Manishin, an antitrust attorney, wrote an op-ed yesterday [reg. required] in the San Jose Mercury News which supported the proposed Google/Yahoo alliance. We take no issue with Mr. Manishin expressing his opinion (although we do profoundly disagree with his analysis and conclusions). But we do find it disconcerting to read his resume and see that Google is listed as his recent client [he’s now at a different firm]. Such a disclosure to readers should have been a prominent part of his article. Here’s the excerpt from Mr. Manishin’s CV [with one client in our bold]:

Partner, Kelley Drye & Warren LLP (2001-08) court
Chaired DC/VA Litigation Practice for this New York-based firm and architeched its expansion from legacy telecom regulatory compliance to the policy and legal disputes affecting the new economy. Representative clients included Oracle, Computer & Communications Industry Association (CCIA), Google, Recording Industry Association of America (RIAA), ProComp, Vonage, Return Path, Global NAPs, BroadVoice, IDT, Telos, Winstar Communications, Association of Local Telecommunications Services (ALTS), Consumer Federation of America and Consumers Union. Lead litigation counsel in several trend-setting antitrust cases arising out of the impact of deregulation in the telecommunications industry.

Two years after CDD & USPIRG warn about online advertising & media consolidation, a call to “monitor the state of competition”

Yesterday, Sen. Herb Kohl, the chair of the Senate Antitrust Committee, sent a letter to the Department of Justice about the proposed Google/Yahoo alliance. Two years ago next month, in its initial complaint filed at the Federal Trade Commission calling for an investigation into behavioral online ad targeting, CDD and USPIRG also petitioned the agency to open up an antitrust investigation. It was clear two years ago–as one surveyed the dizzying global shopping spree by Google, Yahoo, Microsoft, Time Warner/AOL–that a tiny handful would soon dominate the online ad market. Given that online ad revenues are the key to the funding of almost all interactive and online content, we were disturbed by the trend then towards consolidation. Of course, fewer companies controlling all that consumer data also raised fundamental privacy concerns.

Two years later, of course, we have even fewer independent companies left standing. Google swallowed DoubleClick (and is poised to partially operate Yahoo); Yahoo acquired Blue Lithium and Right Media; Microsoft acquired giant aQuantive; Time Warner bought Tacoda and Third Screen Media. Etc.

Regulators on both sides of the Atlantic have been asleep at the digital switch. They have failed to both protect competition and privacy. However, there is a growing awareness that there are serious problems looming. As we know, the same deregulatory philosophy which helped wreck our economy is also the foundation for communications and media policy. It is accompanied, of course, by a `golden’ revolving door between government and private industry that has left consumers and citizens vulnerable to a wholesale set of unfair practices. Addressing these issues will be the focus of much work over the next several years.

Network Advertising Initiative Continues to Protect Online Marketers Interests Instead of Consumer Privacy

The Network Advertising Initiative’s (NAI) real role is to protect the ability of its members (Google, Yahoo!, AOL, etc.) to collect huge amounts of profiling and targeting data from each of us. NAI claims it’s promoting self-regulation on data privacy through its principles and guidelines. But NAI has long been a toothless group, and is basically a public relations vehicle helping to cover the data crime and more-than-misdemeanors of the industry.

So it’s not surprising that last week, the NAI announced that while it supported an “opt-in” for the kind of behavioral targeting planned by the phone and cable companies, it didn’t believe such a safeguard was required for its data-collected membership. In a statement, NAI Executive Director Trevor Hughes said that his group “believes that opt-out continues to be an appropriate choice mechanism for traditional web-based behavioral advertising and this is part of our sliding scale framework.” That’s the political position taken, of course, by his members. They are the biggest behavioral targeters on the planet.

The NAI is a weak group which reflects the cynical view of the online ad industry.  NAI members hope that they can fool policymakers into believing consumer privacy can be safeguarded by the data wolves running the privacy hen house. The battle lines for the next Congress, the FTC and FCC are being drawn. Opt-out is a feckless approach to digital ad privacy. Responsible companies should be in the lead calling for meaningful opt-in. Note to NAI members:  Deregulation and industry self-governance–how shall I put it–doesn’t seem to have worked that well so far!

Interactive Ad Bureau to Congress and Public: If Your Privacy is Protected, The Internet Will Fail Like Wall Street!

It’s too disquieting a time in the U.S. to dismiss what a lobbyist for the Interactive Advertising Bureau said as merely silly. The IAB lobbyist is quoted in today’s Washington Post saying: “If Congress required ‘opt in’ today, Congress would be back in tomorrow writing an Internet bailout bill. Every advertising platform and business model would be put at risk.” [reg. required]

Why is the IAB afraid of honest consumer disclosure and consumer control? If online ad leaders can’t imagine a world where the industry still makes lots of money–while simultaneously respecting consumer privacy–perhaps they should choose another profession (say investment banking!).

Seriously, online ad leaders need to acknowledge that reasonable federal rules are required that safeguard consumers (with meaningful policies especially protecting children and adolescents, as well as adult financial, health, and political data). The industry doesn’t need a bail-out. But its leaders should `opt-in’ to a responsible position for online consumer privacy protection.

Google Policy Blog Fails to Address Yahoo! Deal & Threat to Competition & Privacy

Google’s post today by Tim Armstrong on why its proposed deal with Yahoo! isn’t a competition problem attempts to weave and spin this critical issue. It’s very revealing as well about Google’s own failure to develop into a company which honestly engages in self-examination and reflection. As one can see from the current melt-down of the financial markets, making money shouldn’t be the sole motivation for behavior. Google should have been able to acknowledge that a major deal with its leading search competitor raises serious questions worthy of broad debate and critical analysis.

The failure of Google to respond to the concerns raised by the World Association of Newspapers this week is reflective of this. Newspapers and content publishers are rightly worried about ensuring a diversity of funding sources for the production of news and other information necessary for a democratic society. It’s not as simple as Google’s Tim Armstrong (who wrote today’s post) suggests, that this deal with give consumers “relevant ads” and help keep Yahoo afloat as a robust competitor. In fact, Armstrong and Google, we believe, aren’t being candid here. When an online ad company dismantles (or turns over) a core part of its search function to its leading competitor, it becomes fatally wounded. As Google knows all well, search and display (and online content) are all intertwined. Yahoo’s future, in my opinion, as a full service online ad company is endangered, as more businesses realize that its search ad business relies increasingly on Google.

There are many troubling privacy issues with this deal, something Mr. Armstrong tries to dismiss by saying that [our emphasis]: “[W]e have taken steps in the Yahoo! agreement to make sure that neither company has access to personally identifiable user information from the other company.” But that leaves open an array of personal data collection points, such as cookies, IP addresses, and other statistical analysis online related data. (The failure, by the way, for the privacy issues of the proposed deal to be investigated by the FTC and Congress, is also disturbing).

Mr. Armstrong is Google’s “President, Advertising and Commerce, North America.” He directs their online ad sales. In responding to concerns about competition in the online advertising market–given its links to broader societal concerns–more than just assurances from the sales department is required.