Watch this online video of Randall Rothenberg speaking before a June Federated Media Publishing event. In Mr. Rothenberg’s worldview, demon critics of advertising (such as myself) are deliberately trying to undermine democratic digital media. This would be absurd, if it wasn’t so sad. Mr. Rothenberg is using scare tactics to whip up his members into a frenzy-all so they can fight off laws and regulations designed to provide consumers real control over their data and information. Luckily, Mr. Rothenberg will be on the losing side of this battle to protect consumers in the digital era. Regulators on both sides of the Atlantic understand how the digital marketing ecosystem raises serious concerns about privacy and consumer welfare. We have to say we are disappointed in John Battelle, the CEO of Federated (who wrote a very good book entitled The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture). Mr. Battelle should know that the online marketing system requires a series of safeguards which protects citizens and consumers. There is a balance to be struck here. Online advertisers have unleashed some of the most powerful tools designed to track, analyze, and target individuals–whether on social networks, or watching broadband video, or using mobile devices. We have never said there shouldn’t be advertising. We understand the important role it must play, including for the underwriting of online content. But the online ad system should not be designed and controlled solely by ad networks, online publishers, trade groups and online ad lobbying groups. It must be structured in a way which promotes as much freedom for individuals.
Comcast is no longer a cable company, says Brian Roberts. It’s “a new products company”
Cable’s triple play is turning into a multi-dimensional effort designed to take advantage of its monopoly positions in cable TV and broadband (with mobile coming down the pike). Data collection and targeted advertising is on its agenda, as it is with phone company ISPs. Right now Comcast and other cable companies are working to build an interactive ad system— which raises all kinds of privacy, data collection, interactive marketing and consumer protection, and antitrust issues. This is no slow cable boat adrift on the digital sea, but a well-funded effort that–in part–is connected to Project Canoe. So we were not surprised when we saw this quote from Mr. Roberts during a February 2008 call with analysts: “Over the last few years we have successfully transformed Comcast from a cable company into a new products company that utilizes one infrastructure to deliver a growing number of products.”
Google’s EU Research: And the Brand Played On
Google’s ambitions to deliver for big brands includes paying for the kind of research that demonstrates its power to capture consumers. Google hired market researchers for a “pan-European” effort to “prove search can have a big impact on branding.” According to New Media Age, “[T]he findings…showed coming top of organic listings raised purchase consideration of a brand 4%… exposure to a listing in the top paid position, with no organic listing on the page, increased purchase consideration 20%. The findings provide advertisers with the most complete picture to date of how the entire online journey affects consumer buying… It found search has a positive effect on brand measures such as awareness, recall, brand affinity and even brand communication…
Henry Eccles, Google EMEA product marketing manager for its Market Insights team, said,… “We’ve seen the same lifts for all verticals, including FMCG, retail and technology, and all markets, so we believe this is brand, vertical and market agnostic”…
source: Google provides proof of search’s branding value. Will Cooper. NMA. July 10, 2008 [sub. required]
Why did Yahoo Tell SEC in 2007 that Google was biggest competitor, but now–with proposed new deal–it becomes its partner?
In its most recent 2007 SEC 10K, Yahoo listed Google as its primary competitor: “We face significant competition from large-scale Internet content, product and service aggregators, principally Google, Microsoft and AOL…. Google’s Internet search service directly competes with us for Affiliate and advertiser arrangements, both of which are key to our business and operating results.” But now, with this proposed arrangement, Yahoo’s former principal competitor is its partner. The same 2007 SEC report submitted by Yahoo also cited the development of its “Panama” search ad system as one of its major accomplishments.
When the Senate raises questions this week on the deal, it should ask Yahoo how it could tell the SEC and investors one thing–and then quickly reverse itself.
source: Yahoo Form 10K. Filed February 27, 2008. Available at: http://yhoo.client.shareholder.com/sec.cfm?DocType=Annual
Google/Yahoo deal and its impact on newspapers
One of the issues the Center for Digital Democracy has asked the Department of Justice to investigate is the impact of the proposed deal between Google and Yahoo and its impact on the already endangered newspaper business. Both Yahoo and Google provide online search ads or related services for the majority of the country’s newspapers. Analyzing how the pairing of Yahoo and Google may affect payments to newspaper publishers, and whether there may be the potential loss of competition, is necessary. Given the current financial pressure on newspapers, CDD urged ‘DoJ to examine the deal to address whether it will contribute to a loss in revenues necessary to ensure Americans have access to print-oriented news resources.” (It’s also interesting to note that Yahoo was reported in the trade press in February 2008 as seeing the potential of its newspaper ad platform to even compete with DoubleClick–which at the time was already acquired by Google
Google/YouTube/Viacom & Privacy: Everyone tracking our online video use
The stories on a judge’s order for Google to turn-over to Viacom data on YouTube users have largely ignored a key issue: why is Google–and almost every other leading broadband video provider tracking and analyzing our online viewing habits. It’s because–like with broadband generally and with television–the goal is to know exactly what we are viewing in order to better target us with advertising. In the case of broadband video, whether it is YouTube, Hulu, or Joost, for example, it’s about tracking our viewing so well we can be micro-targeted.
Google sees huge profits for YouTube doing this. They now call YouTube a “next-generation advertising platform,” something we think reflects how they really view the service. Google is pitching the branding and sellling of YouTube to advertisers. Google is now tracking YouTube views as it promotes to advertisers a scheme to take advantage of the “viral” marketing capabilities of YouTube. Finally, it’s also useful to consider how Google’s recently acquired DoubleClick also has a product tracking and analyzing broadband video. Users and policymakers should expect their online viewing will be private–and not to be spied upon. Whether by Viacom, the government, or Google itself.
Google’s online video clout bigger than the TV networks
Just a friendly reminder that the new media world is here–and that it should be the primary focus of public interest communications policy strategies. Via Variety (excerpt):
More signs of the Internet apocalypse for TV’s old guard: U.S. Web surfers viewed some 11 billion online videos in April, a gain of 33% from the same month last year.
According to just-released Web traffic stats from comScore, the most ominous stat is how ardently the next generation has taken to watching video on the Internet.
Online vid viewing is highest among 18- 34-year-olds, who averaged 287 minutes in April…And make no mistake, YouTube is CBS, NBC, ABC and Fox combined on the Internet.”
source: Net traffic signs suggest TV offramp: Web surfers ride YouTube, MySpace wave. Cynthia Littleton. Variety. June 23-29 2008 [print edition. sub required].
Google’s new online ad-suppported animated venture:“We feel that we have recreated the mass mediaâ€
That’s the headline here–“We feel that we have recreated the mass media,†said Kim Malone Scott, director of sales and operations for AdSense in a New York Times article on Google backing a “Calvalcade of Cartoon Comedy” for online. Google is likely using its resources which can track how long users are likely to watch a video, and how they interact with a slew of interactive advertising pitches. They can measure each click too, so they can better determine what works for the commercial sell.
But, of course, the analogy to the “mass media” is what is interesting. Google is leading the way to recreate the mass media in the digital age. They are right about that. But with such an ambitious plan comes responsibility–to ensure there is funding for serious and diverse independent news, investigative reporting, and quality cultural programming. Google should also help ensure that women and people of color–now cut out of ownership in media–actually own significant parts of the new digital content landscape. And there must also be a serious privacy policy which covers broadband video as well. Google, its advertisers, and partners shouldn’t automatically know what we watch and how we respond (without our permission–and with special rules for children and adolescents).
source for quote: Google and Creator of `Family Guy’ Strike a Deal. Brooks Barnes. NYT. June 30, 2008
The IAB Can’t Say the Word “Privacy” Before the U.S. Congress
On Wednesday, IAB president Randall Rothenberg testified before a House Small Business subcommittee. Incredibly, the written testimony failed to mention privacy. Nor did the testimony really convey the nature of interactive advertising today. We will be contacting the subcommittee to set the record straight. And the IAB has to do some serious soul-searching. As more people become informed about the data collection and targeting practices underlying digital marketing, they will expect that companies doing business online are engaged in ethical data collection practices. This will be especially true when it comes to protecting the privacy and consumer welfare of children and teens.
PS: This excerpt from Mr. Rothenberg’s testimony is another illustration of how out of touch the IAB has become. They can’t acknowledge the industry’s problems and offer reasonable solutions. The IAB is also going to hurt small business, once customers learn how their privacy is threatened (and how online advertising raises medical and financial data issues, for example). Perhaps someone will come along offering responsible leadership on this issue for small business. They aren’t getting it from the IAB’s lobbying campaign. Once again, no one is saying there shouldn’t be online advertising. But we are saying that privacy has to be protected–where consumers are in charge of what is collected. And that some practices–including data collection and targeting of children and adolescents as well as sectors such as medical information–require safeguards. But the IAB’s leadership has decided to use the “Chicken Little, Our Data Won’t Be Falling” scare tactic.
“A small but vocal coterie of forces opposed generally to marketing, advertising, and open media markets is attempting to advocate to limit the technology responsible for this internet advertising revolution.
Although these advocacy groups have provided no evidence of public harm, their efforts have begun resulting in regulatory proposals which, if enacted, would severely hinder the ability of small publishers to support themselves with advertising sales, and impair the ability of small businesses to use interactive advertising to market themselves.”
Google “Platinum Sponsor” at Ad Research Event
excerpt: “At the Advertising Research Foundation measurement conference… Google’s designs on establishing a leadership position in advertising research were evident… It was the event’s “platinum sponsor,” and the stage, halls and registration area were festooned with Google signage and promotions that made other dominant industry players such as Nielsen Co. look circumspect by comparison…
a Google executive gave a presentation about the capabilities of the TV Ads service–which provides a detailed next-day report on where an ad ran, how many impressions it received, and viewer tune-in levels over the course of a particular spot via second-by-second data.”
ARF Talk: Google Stalks Research Walk, May Balk On Accreditation. David Goetzl. Media Daily News. June 26, 2008