Do Not Track Default

By Brad

In what could have major repercussions for the business of online marketing, Wired’s Ryan Singel reports Microsoft is making so-called “do not track” service default in the latest version of its browser Internet Explorer:

Microsoft announced Thursday that the next version of its browser, IE 10, will ship with the controversial “Do Not Track” feature turned on by default, a first among major browsers, creating a potential threat to online advertising giants.

That includes one of Microsoft’s chief rivals — Google.

The change could also threaten the still-nascent privacy standard, and prompt an ad industry revolt against it.

Given the titans involved — and Internet Explorers’s use — this could get real ugly real fast.

Overhauling the Algorithm

By Brad

Last night, Google announced it was changing its search algorithm. While the company tweaks their search results all the time, this one seems like a substantial overhaul. From the official Google blog:

Many of the changes we make are so subtle that very few people notice them. But in the last day or so we launched a pretty big algorithmic improvement to our ranking—a change that noticeably impacts 11.8% of our queries—and we wanted to let people know what’s going on.

At GigaOm, Mathew Ingram says the changes are in an attempt to limit search results from so-called “Content Farms” — sites that generate a ton of low-quality content to generate advertising revenue:

Google hasn’t specifically said that the changes are aimed at content farmers — in fact, the term doesn’t appear anywhere in its blog post, which simply refers to “low-quality sites” — but Search Engine Land says the rollout is almost certainly aimed in that direction. According to Google, the changes affect about 12 percent of the company’s search results, which is a fairly large proportion for such a change, and an earlier revision last month targeted so-called “scraper” sites, which simply copy content verbatim from other sites.

Do Not Track

By Brad

The issue of online tracking by companies has been floating around the halls of Washington the past few years. Now, Wired’s Ryan Singel reports, it’s being tackled in bill form by Rep. Jackie Speier (D-CA):

The bill, known as the Do-Not-Track-Me-Online Act, intends to let people choose a no-tracking setting in their browser and have companies obey that setting. The rules would mainly apply to companies whose primary business is collecting and analyzing data, but has loopholes for companies that collect data to improve their own services. Under those provisions, the FTC could rule website-analytics software to be legal.

The FTC asked browser makers in December to include a Do-Not-Track button in their browser, and called on online-advertising companies to agree to obey the settings. The setting is already available in beta builds of Firefox, and will soon be integrated into Chrome and IE as well.

Speier’s legislation seems directed at behavioral-tracking companies that track users around the web — usually without their knowledge — in order to create marketing profiles about users. The info is then used to serve targeted ads, which can be sold at a premium to advertisers.

Keeping Privacy on the Burner

By Brad

The National Journal’s Juliana Gruenwald reports that Rep. Cliff Stearns is reworking his online privacy bill he drafted with former Rep. Rick Boucher and hopes to submit it this session:

The draft Boucher-Stearns bill would have required websites to inform users how they collect and use personally identifiable information. Under the bill, consumers, for the most part, would have to opt out of having such information collected, although it would mandate that users opt in before websites could collect sensitive information such as financial and health data or share personally identifiable data with some third parties. Third-party ad networks would be exempt from the opt-in requirement as long as they adhere to certain guidelines.

Impressive Number for Online Advertising

By Brad

Via TechCrunch, marketing analyst company comScore has released new data that finds close to 1.3 trillion — yes, trillion — online display ads reached web users in Q3 of this year alone. The #1 delivery method? Facebook:

According to comScore, the social network led all online publishers in the third quarter with no less than 297 billion display ad impressions, representing 23.1 percent market share.

How to Know You’re Being Followed Online

By Brad

If a a number of online marketing associations have their way, you may start seeing this icon on many of the websites you visit. At the Wall Street Journal, Jennifer Valentino-DeVries explains why:

The icon… will indicate that the company is following self-regulatory principles. Along with the icon, a company can use phrases like “Why did I get this ad?” and “Ad Choices” to direct consumers to more information about behavioral data collection and privacy.

The companies involved in this new industry “need to talk to their audiences. They need to describe what they do, how they do it and the value it brings,” Randall Rothenberg, president of the Interactive Advertising Bureau, said in a statement.

The Purchase Gets the Nod

By Brad

After months of waiting, Google’s $750 million purchase of online advertising company AdMob has been unanimously approved by the FTC. And as it turns out, it was the entry into the online ad market by one of Google’s chief competitors that appears to have swayed the vote. From the FTC statement about the approval:

In a statement issued today, the Commission said that although the combination of the two leading mobile advertising networks raised serious antitrust issues, the agency’s concerns ultimately were overshadowed by recent developments in the market, most notably a move by Apple Computer Inc. – the maker of the iPhone – to launch its own, competing mobile ad network. In addition, a number of firms appear to be developing or acquiring smartphone platforms to better compete against Apple’s iPhone and Google’s Android, and these firms would have a strong incentive to facilitate competition among mobile advertising networks.

“As a result of Apple’s entry (into the market), AdMob’s success to date on the iPhone platform is unlikely to be an accurate predictor of AdMob’s competitive significance going forward, whether AdMob is owned by Google or not,” the Commission’s statement explains.

A Decision From the FTC

By Brad

Speaking of online advertising, The Hill is reporting that the Federal Trade Commission’s decision over Google’s proposed purchase of AdMob — a $750 million dollar deal — could be coming by the end of this week.

Adbook

By Brad

According to the latest numbers from comScore, there’s a new king of the hill when it comes to online display advertising. Via Read Write Web:

Facebook has delivered 176.3 billion display ads in the first quarter of 2010, pulling well ahead of Yahoo’s 131.6 billion banner ads and Microsoft’s 60.2 billion ads

Oddly enough, while Facebook beat Yahoo and Microsoft in number of ads, they trailed far behind in revenue produced by those ads.

Privacy & Advertising

By Brad

The New York Times highlights a new report from privacy research group the Ponemon Institute that finds when it comes to online advertising, privacy concerns are creating some roadblocks:

Privacy issues have prompted marketers to use online behavioral advertising — based on tracking a user’s Web browsing habits — 75 percent less than they would otherwise, according to a report by the Ponemon Institute, a privacy research group.

The 90 companies and organizations surveyed curtailed their behavioral advertising, even though they estimated the tracking-based ads were 50 percent more efficient in generating sales than conventional online display ads.

“Privacy fears are definitely having an economic impact,” said Larry Ponemon, chairman of the privacy and security research group.

Speaking of Twitter…

By Brad

As TechCrunch reports, the micro-blogging service now has over 100 million users — and is adding close to 300,000 new members each day.

With those kind of numbers, no wonder they’re launching an advertising program.

Meanwhile, in other Twitter news, the Library of Congress has announced it is archiving every “tweet” posted since 2006. Wow.

Online Ad Wars

By Brad

Via Ars Technica, Google’s acquisition of online advertising company AdMob is not sitting well with the Federal Trade Commission:

According to people “familiar with the matter” speaking to the Wall Street Journal, the FTC has sent letters asking AdMob’s competitors to testify about the impact of the purchase and has briefed members of Congress on its concerns. The Commission has also put together a litigation team “to prepare for a possible effort to block the deal,” though a final decision has not yet been made.

At issue is Google’s dominance in the online advertising market. But as All Things Digital reports, a rumored entry into online advertising by a Google rival may help soothe things over with the FTC:

Apple is likely to introduce its mobile ad platform Thursday at its iPhone developer event, say sources familiar with the company’s plans. Expect to hear a loud cheer from Google, Apple’s former ally and current competitor.

Why would Google applaud the entrance of a new advertising rival? Because Google is trying to convince federal regulators that it has advertising rivals so that it can proceed with its $750 million purchase of AdMob. That deal is being held up for review by the Federal Trade Commission, and there have been consistent murmurs from Washington that the purchase could be in jeopardy.

Blogging is Work

By Brad

Outside of a few superstars, most independent bloggers don’t make enough from advertising on their site to earn a living. But as Forbes reports, what little dough that comes a blogger’s way could be enough to deny them unemployment benefits — even if they’re making a little over $1 a day.

Social Networking Craze

By Brad

Nielsen has some new numbers on social networking use in the United States, and it turns out that use of services like Facebook, MySpace, and Twitter has tripled — that’s right, tripled — since 2008.

As Read Write Web reports, this influx of users is changing the face of online advertising:

While for consumers, hitting up Facebook for a daily dose of socializing is just par for the course nowadays, this change in consumer behavior has had dramatic impact on the online advertising industry. Where before, advertisers were somewhat wary of social media properties, they’re now spending more than ever for prominent spots on social networking sites. Even as companies decreased their overall ad expenditures, they increased their spend on top social networks and blogs - up 119% from last year. ($108 million in August 2009 up from $49 million in August 2008). And when broken down by category, the increases are even more dramatic. The entertainment industry, for example, has increased spending by 812% year-over-year on social network sites and the travel industry increased spending by 364%.

Protecting Privacy

By Brad

The Washington Post reports that in an effort to protect consumer privacy, House Energy and Commerce Subcommittee on Communications, Technology and the Internet Chairman Rep. Rick Boucher [D-Va.] is drafting a bill to regulate online marketing and advertising.

Drafting a bill that works for both consumers and ad networks won’t be without challenges, but Rep. Boucher believes smart regulation can be arrived at:

While Congress has waded into Internet privacy issues before, this measure could break new ground, as the first major attempt to regulate a nascent but fast-growing industry that represents the future of advertising. Boucher insists his bill will benefit consumers and preserve the underlying economics of the Internet, which relies on advertising to keep so much online content free.

“Our goal is not to hinder online advertising,” he said. “This will make people more likely to trust electronic commerce and the Internet.”

The New Push For Privacy

By Brad

The New York Times reports that while the Obama administration moves forward with efforts to construct a national broadband plan, privacy groups are gearing up for a push of their own. And so far, 10 major groups have joined up:

Among the things they’re asking for: No sensitive information (like health or financial information) should be used for behavioral tracking, no one under 18 should be behaviorally tracked, Web sites and ad networks shouldn’t be able to keep behavioral data for more than a day without getting an OK from the individual they’re tracking, and behavioral data can’t be used for discriminatory purposes.

As the online advertising industry continues to grow, privacy concerns are only going to grow along with it.

Pitching Booze Online

By Brad

Alcohol companies have long been restrained when it comes to advertising on television, their pitches relegated to cable—and only then during hours when kids are likely to be tucked into bed. But now, Advertising Age reports, Brown-Forman, owners of Southern Comfort, are ditching TV altogether and instead taking their advertising dollars online:

Last year, SoCo spent $6 million of its $8 million measured media outlay on cable TV, and another $1.5 million on magazine ads. This year, both those numbers will drop to zero in favor of online properties such as Facebook, Spin, Fader, Pitchfork, Thrillist and Hulu.

The move won’t just allow Southern Comfort to be advertised on more popular shows, it will help distance the brand from competitors. Whether Southern Comfort will partner with iBooze, however, remains to be seen.

Joining Forces

By Brad

When it comes to the all-important search, Google still rules the roost. But now things are starting to get interesting. Via Read Write Web:

A few months from now, Yahoo’s search engine will be “powered by Bing.” After months of back and forth between Microsoft and Yahoo, the two companies finally announced a deal today that will bring Microsoft’s search engine to Yahoo’s properties, while Yahoo will become the sales force for both companies’ premium search advertisers.

The agreement between Microsoft and Yahoo is for the next 10 years. As for Google’s reaction to the deal, here’s what PC World found out:

The head of Google’s search organization said the search deal announced Wednesday between Microsoft and Yahoo looked likely to be negative for competition and for consumers.

If Yahoo adopts Microsoft’s Bing search engine in place of its own, that will reduce the search market from three major players to two, said Marissa Mayer, Google’s vice president of search and user experience. She said several groups at Google were still studying the proposed partnership, which is expected to close next year, but that it might reduce innovation.

Seems like the search battle is about to heat up again. Stay tuned…

Web Video Picking Up Steam, Advertising Dollars

By Brad

TV still rules when it comes to capturing eyeballs, but as Bloomberg reports, online video is starting to demand higher advertising rates. Case in point: The Simpsons charges $60 per thousand viewers online—$20 more/ thousand than during prime time.

Why the discrepancy? While traditionally television advertisers have had no real way of knowing whether or not people are actually watching the programs they’re advertising on—is the TV just on in the background?—online viewers are assumed to be much more engaged. After all, why bother streaming an episode on your computer if you’re not going to watch it?

Advertising Boom

By Brad

A new report from the Interactive Advertising Bureau, has released some numbers showing the Internet’s effect not just in advertising revenue, but in jobs:

Interactive advertising is responsible for $300 billion of economic activity in the U.S., according to a new study released today by the Interactive Advertising Bureau (IAB). The advertising-supported Internet represents 2.1% of the total U.S. gross domestic product (GDP). It directly employs more than 1.2 million Americans with above-average wages in jobs that did not exist two decades ago, and another 1.9 million people work to support those with directly Internet-related jobs. A total of 3.1 million Americans are employed thanks to the interactive ecosystem.

Check out the IAB’s full report.