Back to Main

Microsoft

October 29, 2009

Yahoo, Microsoft Delay Search Deal Signing

Yahoo filed an extension last night to its self-imposed deadline for signing the pending search deal with Microsoft. When the deal was announced on July 29, the companies expected to complete the deal by October 27, but that didn't happen.

During its analyst day presentations yesterday, Yahoo CEO Carol Bartz told financial analysts not to worry about the move, insisting it was just a matter of "running out of time."

"It's a 10-year agreement, so we'd like to get it right up-front," Bartz said. She said the delay should not impact the timelines Yahoo and Microsoft expect for regulatory approval.

According to the Form 8-K filing:

The Letter Agreement specified that the parties would execute Definitive Agreements by October 27, 2009, but given the complex nature of the transaction, there remain some details to be finalized. The parties are working diligently on finalizing the agreements, have made good progress to date, and have agreed to execute the agreements as expeditiously as possible.

Posted by Kevin Newcomb at 8:38 AM | Permalink | Comments (3)

August 9, 2009

Microsoft to Sell Razorfish to Publicis for $530M

The Publicis Group said today it struck a deal to acquire digital marketing agency Razorfish from Microsoft for $530 million.

"When we complete this transaction, approximately a quarter of our annual revenues will come from digital communications, and we believe we have more capacity to grow with new clients," Publicis CEO Maurice Lévy said in a statement. (See announcement here.)

Razorfish will continue to operate under its brand name and will be part of VivaKi, a Publicis entity that includes Digitas, Starcom MediaVest Group, Denuo, and ZenithOptimedia. Razorfish clients include Best Buy, Ford, McDonald's, Microsoft, and Starwood Hotels.

Razorfish's management team, including Chief Executive Officer Bob Lord, will remain in place, according to a joint statement issued by Microsoft and Publicis.

In June, Publicis and Microsoft announced they were working together to build upon ways to deliver online offerings to brand marketers. Once the Razorfish deal closes, the Microsoft and Publicis said they plan to expand upon the earlier arrangement.

Going forward, Publicis will be able to purchase display and search advertising from Microsoft over five years on "favorable terms in exchange for certain minimum guaranteed aggregate purchase levels." What's more, Razorfish will continue to be a preferred provider to Microsoft for digital strategy, creative, and experiental marketing services.

Microsoft acquired Razorfish in 2007 as part of its acquisition of aQuantive. But Microsoft's ownership was seen by some as a poor fit and potential conflict because it represented both the ad selling and buying side.

Posted by Anna Maria Virzi at 10:22 PM | Permalink | Comments (3)

July 28, 2009

Alternate Deal Reality: Yahoo, Microsoft Might Create a Joint Venture

Conventional wisdom says the imminent deal between Microsoft and Yahoo will be structured as a search syndication partnership. Yahoo will begin carrying Bing search technology, and Microsoft will sell the bulk of ads against those results. Yahoo would confine its ad sales efforts mainly to display, and would receive payments (and user data) from Microsoft for search activity on its domain.

However other scenarios are still being floated internally at Microsoft. According to one senior Microsoft source outside the negotiations, a joint venture has also been discussed and was rumored to be CEO Steve Ballmer's preferred outcome.

Under such a set-up, the source said, a new company owned by both Microsoft and Yahoo would be in charge of selling search and possibly some display ads for both companies. Bing technology would presumably replace Yahoo Search, since Microooft is so keen on extending its technology.

Interesting notion, but it's hard to imagine such a JV could serve the best interests of both Yahoo and Microsoft equally. It's much easier to imagine this working for search than for display ads, unless both companies migrated their entire sales forces to the joint venture -- almost unfathomable. On the other hand, a joint venture housing only search ad sales would go against the idea of integrated display and search ad planning.

Why would this appeal to Ballmer? According to the source, Ballmer has come to accept Microsoft just isn't very good at sales

"Microsoft doesn't directly sell," he said. "It sells software through its vendor relationships... A joint venture would essentially be just a sales force."

Posted by Zachary Rodgers at 8:31 AM | Permalink | Comments (1)

July 1, 2009

Microsoft Pushes Bing in a Big Way

Microsoft is investing big ad dollars in big splashy display ads for Bing.

In case you didn't notice, Microsoft is the latest advertiser to use a pushdown ad -- a new unit introduced by the Online Publishers Association. The Bing ad appeared on wsj.com today and nytimes.com yesterday and June 8. A similar ad also ran on Msnbc, according to a Microsoft spokesman.

What's more, Microsoft is using creative from the campaign in other placements -- including including interstitials, homepage and channel roadblocks -- on Huffington Post, Slate, and Federated Media, the spokesman said.

Posted by Anna Maria Virzi at 4:44 PM | Permalink | Comments (3)

June 23, 2009

Hyatt Launches Verizon Mobile Campaign through Microsoft

Global Hyatt Corp has partnered with Microsoft and Verizon to launch a mobile ad campaign, which it hopes will drive registrations to the hotel chain's Gold Passport frequent guest reward program, in addition to driving traffic to its newly launched mobile site.

Search and display ads will point users to Hyatt's mobile destination, which now allows users to find and book hotel rooms, check-in and -out remotely, and receive tailored promotions on their handset.

Microsoft penned a deal with Verizon in January through which it now sells display and search inventory across all of the carrier's mobile properties. The software giant says mobile is now a "critical component" in its ad offerings, and that it has made "significant investments" in the area.

Posted by Jack Marshall at 6:27 AM | Permalink | Comments (1)

May 7, 2009

Yahoo to Take Over Microsoft Ad Sales? Not Likely

The latest reports about negotiations between Microsoft and Yahoo suggest the two have entered a period of "meaningful" talks and may strike a deal before too long. While details are obviously murky, Boomtown has heard that under the deal being discussed "Yahoo would take over both search and display advertising sales and Microsoft would run the tech for both behind the scenes."

That will never happen, according to one knowledgeable source at Microsoft. First, Microsoft is too focused on the long-term importance of digital advertising to sign away control of its sales operation. The company is heavily invested in that marketplace in terms of both people (well over 1,000 in U.S. sales alone) and products (40+). Can Microsoft trust Yahoo to sell MSN, Microsoft Media Network and its other products with the same vigor and knowledge it brings to the table when peddling its own properties? And would Microsoft's famous executive egos ever outsource something as crucial as ad sales?

According to the source, the answer to both questions is no. "There's no way in hell is Microsoft going to give Yahoo control on its properties," he said.

Posted by Zachary Rodgers at 2:47 PM | Permalink | Comments (0)

May 6, 2009

Morning Reads: Microsoft Job Cuts Hit Massive, TheStreet Plowed, WebMD Upbeat

Massive hit by Microsoft layoffs. In-game ad network Massive Inc., which Microsoft bought three years ago, has suffered a significant headcount reduction under the company's latest round of layoffs. VentureBeat reports the ad unit's staff may have been reduced by as much as 75 percent. Updated: The ad unit's staff was reduced by 28 percent, a spokesperson has corrected. "We have made these adjustments in response to general benchmarks and growth trends in the in-game advertising industry. They will allow us to operate more efficiently in the future, and we remain committed to growing the business." Microsoft expects no disruption in its relationships with brands and publishers.

TheStreet.com's online ad revenue plummeted 47 percent in Q1. The company's interactive marketing revenues -- which includes both online ads and lead gen services -- fell almost as much, totaling $4.5 million in Q1. (earnings release)

WebMD on the other had cause to celebrate. The health company's online ad revenue grew 16 percent during the period. The company acknowledged many biotech and pharmaceutical firms have cut ad budgets but said "WebMD is benefiting as these companies consolidate their spending with fewer, high quality media properties." (earnings release)

Posted by Zachary Rodgers at 12:16 PM | Permalink | Comments (0)

May 5, 2009

Morning Reads: Craigslist Erotic Ads, Micro-hoo, Google Antitrust

Craigslist Erotic Services Ads on the Ropes. Less than two weeks after Connecticut Attorney General Richard Blumenthal called on the site to ban photos in its "erotic services" section, Blumenthal along with state AG's from Missouri and Illinois will meet with Craigslist officials today, CNET reports. In a statement, CEO Jim Buckmaster said the company "anticipates making further progress toward the common goal of eliminating illegal activity from Craigslist."

Microsoft-Yahoo Deal Progress? Deal talks between the two companies has become "meaningful," says BoomTown. Details of a partnership remain hazy, but Yahoo would likely sign over at least some of its search business to Microsoft.

More Anti-Trust Trouble for Google. This is not an advertising story, but it appears Google is, for the second time in just a few days, enduring the scrutiny of regulators. The concern this time, as reported in The New York Times: close ties between the boards of Apple and Google. The FTC wants to examine whether the presence of two execs -- Google's Eric Schmidt and Arthur Levinson of Genentech -- on both companies' boards violates the law.

Posted by Zachary Rodgers at 8:38 AM | Permalink | Comments (2)

May 4, 2009

Microsoft Running Ads Promoting ExecTweets

I thought this was worth noting. I was visiting the Wharton Business School's Knowledge@Wharton site and spotted this ad for Microsoft's ExecTweets. The Microsoft-sponsored ExecTweets site. launched in March, was developed by Microsoft and Twitter along with social media and ad company Federated Media.

Posted by Kate Kaye at 10:48 AM | Permalink | Comments (0)

April 27, 2009

Microsoft Partners with Spotzer for Self-Service Ad Platform

Microsoft Advertising has teamed up with Spotzer to provide a self-service ad platform, through which smaller businesses and regional advertisers can buy campaigns across Microsoft's media properties.

The new platform, currently available at www.spotzer.com/microsoft is launching in the Netherlands today, though Spotzer's CEO, Andrew Klein, told me he hopes this will extend to other territories soon, including the U.S.

Spotzer essentially offers a range of pre-produced video, banner and text message creative, to which advertisers can add their own branding and marketing materials. Through this partnership, media can then be purchased across Microsoft's properties, targeting users by segments such as demographics and geographic region.

Essentially, Microsoft will subsidize Spotzer's creative solutions for advertisers, providing they commit to a minimum €1,000 media spend. Advertisers are also free to upload their own creative if they prefer.

Posted by Jack Marshall at 12:56 PM | Permalink | Comments (0)

April 24, 2009

Microsoft's Ad Business: More Akin to AOL than Google

When it comes to digital advertising, Microsoft still has a lot more in common with Yahoo or AOL than it does with Google.

In its earnings report yesterday, the company reported online ad revenues declined 16 percent during the quarter just ended, primarily due to a significant drop in ad rates. The decline was somewhat offset by growth in both page views and queries on its search engine.

Naturally Microsoft would like to reverse those clauses -- boasting to advertisers that strength in search was partially brought down by weakness in display ad rates. Alas, with 40-plus media products in the market, and the vast majority of them reliant on display, rich media, and other types of graphical advertising, that's not happening soon -- unless, that is, Steve Ballmer and Yahoo CEO Carol Bartz shock the world by striking a search ad deal of some sort this quarter. The likelihood of that outcome is anybody's guess, but few believe an agreement is imminent.

On a somewhat brighter note, Microsoft's recent "I'm a PC" campaign appears to be paying off. During the Q1 earnings call, execs boasted internal research found consumers professed a 10 percent increase in preference for Windows machines since the ads launched.

Posted by Zachary Rodgers at 11:17 AM | Permalink | Comments (2)

February 23, 2009

Microsoft's Scott Howe Gets Laughs at IAB, But Conflict Fears Persist

Scott Howe managed to make the current crisis of falling ad prices funny today in his speech before 400 or so publishers at the IAB's annual meeting in Orlando today. In a bit called "Why the Green Bay Packers are smarter than us," Microsoft's corporate VP, advertiser and publisher solutions speculated that if the online ad industry owned the Packers, the team's biggest star would make the full $98 million in salaries paid to the whole team. In actuality, two of the team's relatively anonymous defensive ends are better paid.

You get the analogy. The Web's unsung heroes (premium media brands) do the heavy lifting, and are entitled to more of the total ad spend. The star (search) should get less.

Howe then made an impassioned plea for publishers to work with Microsoft's Atlas Institute ad research unit to determine the advertising impact generated by their sites. "If you want to know how your site did in helping, you call and we'll hammer it out," he said.

But Howe couldn't entirely escape the conflict of interest issues facing a company that is not only an ad platform, but also a major publisher AND a global ad agency.

One example: When he said publishers must resist advertiser demands to cut prices further, someone shouted from the audience, "Tell Avenue A!"

Howe took the jab in good humor, but a few minutes later was forced onto the defensive again, when IAB President Randy Rothenberg asked him if Microsoft's invitation to publishers isn't really "a case of the fox in the hen house."

Howe acknowledged the point, and once again told digital media firms not to worry -- that he's on THEIR side. "Having a better forecasting engine is good for all of us," he said. "There are no ulterior motives here."

Earlier today Scott talked with ClickZ about Microsoft's move to integrate its sprawling ad network and media holdings into a single platform called Microsoft Media Network. Read our full coverage.

Posted by Zachary Rodgers at 5:50 PM | Permalink | Comments (1)

January 21, 2009

Job Cuts Expected at Microsoft

In advance of its earnings tomorrow, Reuters reports Microsoft is likely to cut thousands of jobs due to lower than anticipated revenues.

Posted by Enid Burns at 3:46 PM | Permalink | Comments (0)

October 28, 2008

Google, Yahoo, Microsoft Sign Human Rights Ethics Code

Google, Yahoo and Microsoft have signed an industry code of ethics designed to safeguard human rights and freedom of speech online. The Global Network Initiative guidelines, drawn up by Internet firms, academics and human rights groups, will aim to limit the data that is shared with authorities and governments around the world.

Under the guidelines, participating companies will attempt to reduce the scope of government requests that conflict with free speech and other human rights principles.

In a statement, Yahoo CEO Jerry Yang said the new guidelines "provide a valuable roadmap for companies like Yahoo operating in markets where freedom of expression and privacy are unfairly restricted."

Yahoo found itself in hot water last year when it handed over information to Chinese authorities which eventually lead to the imprisonment of two dissident journalists. Google has also encountered difficulties in China, and has agreed to censor local searches for terms such as "democracy" and "Tiananmen Square" in response to requests from Chinese authorities.

Ironically, these firms are constantly under fire from privacy advocates surrounding their use of consumer data in Europe and the U.S. Just last month, Google followed the lead of Yahoo and Microsoft and cut the amount of time it stores users' IP addresses from 18 months to nine in response to scrutiny from European regulatory bodies and privacy campaigners.

Outside of the EU and the U.S. however, it seems that internet firms are concerned about quite the opposite - the need to safeguard personal information from prying government eyes.

Posted by Jack Marshall at 10:57 AM | Permalink | Comments (2)

October 24, 2008

Microsoft Ad Business Strong, But Display Ads Threatened

Among Microsoft's diverse revenue streams, its display ad business is the most vulnerable to economic conditions. That's according to CFO Chris Liddell, who yesterday told investors the company still has great expectations for its online services business, which includes its search and ad platforms.

According to Microsoft's earnings report yesterday, online services revenue grew an impressive 15 percent to $770 million for the quarter just ended. It experienced an overall loss of $267 million, but that's not surprising in light of Microsoft's heavy R&D investment in search.

The picture's far from rosy however. Microsoft said it expects less aggressive growth of between 6 and 10 percent for the current quarter, and between 10 and 13 percent growth for the entire fiscal year (July 2008 to June 2009). Liddell said online ad revenue by itself will grow a slightly more robust 15 percent for the year, a rate he called "still healthy in a more difficult advertising spending environment."

In other words, Microsoft anticipates single-digit growth for the first six months of next year. Web advertising performance beyond that is anyone's guess.

As Liddell put it, "Our display advertising business is probably the most economically sensitive of our revenue streams and therefore has the highest potential to either under or outperform depending on the state of the economy."

Posted by Zachary Rodgers at 1:58 PM | Permalink | Comments (0)

September 18, 2008

New Microsoft Ads Seek to Undercut Apple's Bite, Minus the Jerry

No one expected Microsoft to tackle Apple's Mac/PC ads directly in the next wave of the new Windows campaign created by Crispin Porter & Bogusky. But that's just what it's done.

Not only that, it dug up a John Hodgman look-alike from the ranks of Microsoft engineers to try and undercut Apple's biting portrayal of the company's stodgy image. "Hello, I’m a PC, and I’ve been made into a stereotype," he says.

Other ads feature Eva Longoria and Deepak Chopra, among others, but the campaign's really about the Windows pride of everyday users. (Visit the campaign site.)

Conspicuously absent from the new ads is Jerry Seinfeld, dropped after negative reactions from ad critics and bloggers. A rep of Microsoft's PR firm, Waggener Edstrom, characterized his removal as planned in a comment to Valleywag.

Posted by Zachary Rodgers at 9:16 AM | Permalink | Comments (0)

September 12, 2008

Amazon Grabs Microsoft Exec

What sort of ad selling plans does Amazon have up its sleeve? There must be some, since the ecommerce king has hired longtime Microsoft Digital Advertising Solutions GM Lisa Utzschneider. Amazon wouldn't confirm the news, which was reported by the New York Post.

Amazon has yet to make any big splash in the online ad industry. This certainly signals interest in building out that side of the business. So far, big players like Google, Yahoo, Microsoft, AOL – and if we're talking ecommerce, eBay – haven't had to worry much about Amazon as a competitor in the online ad arena. They might have to now.

UPDATE: I have confirmation from a Microsoft spokesperson that Utzschneider plans to leave the company "to pursue other career opportunities." She's done at Microsoft September 15th and no replacement has been named.

Posted by Kate Kaye at 12:28 PM | Permalink | Comments (0)

September 5, 2008

First Seinfeld/Gates Microsoft Spot

The first of Crispin, Porter's highly anticipated spots is about .... nothing.
But the infamous teenage mugshot of Gates is a nice touch, no?

Posted by Rebecca Lieb at 8:46 AM | Permalink | Comments (0)

August 29, 2008

Microsoft Nabs European Shopping Search Player

Microsoft has entered a deal to acquire Greenfield Online, an attitudinal researcher and owner of European comparison shopping player Ciao GmbH, for $486 million. Microsoft's in it strictly for the shopping search platform, which it dubs "commercial search," and has already found an (undisclosed) buyer for the research/survey business.

"Integrating Ciao's capabilities into Live Search will provide a strong launchpad for our commercial search offer in Europe and enhance our e-commerce offering on MSN," said John Mangelaars, consumer and online VP for Microsoft's operations in Europe, the Middle East and Africa.

Ciao boasts 26.5 million monthly uniques in seven countries, according to comScore numbers cited by Microsoft. It aggregates merchant and product reviews and enable purchases in a manner similar to U.S. sites like eBay-owned Shopping.com.

Posted by Zachary Rodgers at 12:49 PM | Permalink | Comments (3)

August 26, 2008

Deal Rumors: Can WPP Sell Open AdStream and Keep 24/7 Real Media?

Shortly after Microsoft bought aQuantive it quarantined the ad company's agency unit, Avenue A/Razorfish, in its own division with its own CEO. There were two ways to interpret that move: A) Microsoft wanted to keep the unit -- and its substantial profits -- while diminishing the appearance of conflict of interest, or B) Microsoft wanted to sell it and was removing the barriers to such a sale.

A report from AdAge appears to lend credence to the latter theory. According to the story, Microsoft has been in talks with WPP about a possible transaction that would unload Avenue A/Razorfish onto the agency holding company. Rather than a direct sale, unnamed sources tell AdAge the companies are entertaining a swap -- AA/Razorfish for 24/7 Real Media's Open AdStream technology. Such an arrangement would conceal the fact that both companies overpaid for their holdings, the thinking goes.

The partnership might make some additional sense since the companies have a very cozy relationship (Sir Martin Sorrell has spoken at numerous Microsoft events.)

But the logic doesn't quite hold when you look at the deal's technology underpinnings. For one thing, 24/7 Real Media's ad management system is a good deal more limited than what Microsoft already possesses with its Atlas unit. And while it's true that Open Adstream is a publisher side technology and Atlas is historically an advertiser facing one, Atlas has since built out its publisher offerings. Why would it want a redundant system? For the access to publishers? Eh, maybe.

Furthermore, what would be left of 24/7 Real Media after the amputation of Open AdStream? The main strength of this company, which WPP bought just a year ago, is its technology. Dumping the flagship product would be an explicit acknowledgement that the purchase was a blunder. To get AA/Razorfish in exchange for it would be an epic lemons-to-lemonade coup, but I still don't get what's in it for Microsoft.

Posted by Zachary Rodgers at 9:54 AM | Permalink | Comments (1)

July 25, 2008

What the Heck Is 'Page Search'?

If you happened to catch coverage of Microsoft's extended deal with Facebook, you may have read reports suggesting that the social site will now run Microsoft's "page search" advertising. The transcript of Steve Ballmer's somewhat frenetic speech before financial analysts yesterday has him employing the term multiple times, including when describing the Facebook deal.

Shocker: The transcription is wrong.

As you may have guessed, it should have read "paid search," which is, indeed what Ballmer said.

A Reuters report seen on The Guardian site, along with others, perpetuates the error.

ClickZ's story, on the other hand, does not.

Posted by Kate Kaye at 4:23 PM | Permalink | Comments (1)

July 7, 2008

Micro-hoo Head Games: Next 24 Days are All-Important

The two most important dates in Yahoo's immediate future are July 22 and August 1.

On the first date Yahoo will announce its second quarter earnings, which should help clarify its (and the Web's) vulnerability to U.S. economic woes -- as well as to continued oversupply caused by a glut of social network ad inventory. Any pain would likely emanate from the financial, automotive & travel sectors, which have steadily reduced spending over the past year.

Poor results will put the company on weak footing with investors, who will meet on the second date above to decide on -- among other things -- Carl Icahn's proposal to oust its management and board of directors. Icahn intends to replace the company's CEO and board with a leadership team, including himself, that would be more open to a sale of part or all of Yahoo to Microsoft. Indeed, should Icahn succeed, whatever crew takes over would be explicitly appointed to orchestrate a deal with Microsoft.

No shocker: Microsoft supports that outcome. Microsoft stated this morning that it has "concluded it cannot" reach an agreement with the current leadership (very careful language that does not preclude new talks with Yang at some later date), but would reconsider a complete acquisition of Yahoo if Yang & company are yanked. Yahoo quickly retorted: "If Microsoft and Mr. Ballmer really want to purchase Yahoo, we again invite them to make a proposal immediately."

Meanwhile, Yahoo may be working furiously to consummate an agreement with Time Warner to purchase or otherwise combine its operations with those of AOL. The Times Online describes re-ignited talks between the Web company, Goldman Sachs and Time Warner's leadership in an effort to "re-heat" negotiations ahead of that all-important shareholder meeting.

A merger announcement within 24 days could overshadow weak earnings, and convince shareholders to give Yahoo's current leadership some more time to improve performance.

Posted by Zachary Rodgers at 12:21 PM | Permalink | Comments (0)

July 2, 2008

Quote of the Day: Filling Ballmer's "Internet hole"

"Yahoo executives were unimpressed with Mr. Ballmer's vision. If anything, they regarded the Yahoo pursuit as a crude solution to quell his obsession with Google. They would later refer to Mr. Ballmer's plan as 'filling his Internet hole.'"

-From The Journal's detailed report on the ins and outs of Microsoft's negotiations with Yahoo. Most recently, Microsoft has approached media giants including News Corp and Time Warner to join it in a new offer that would likely result in the breakup of Yahoo. The story suggests those discussions have so far come to naught.

Posted by Zachary Rodgers at 11:06 AM | Permalink | Comments (0)

July 1, 2008

AOL, Microsoft, WPP: Top Wheeler Dealers

Marketing executives working with digital media vendors might need a scorecard handy to track who owns who these days.

AOL, Microsoft, and WPP each acquired five marketing, advertising, or digital media companies during the first six months of 2008, according to a report on mergers and acquisitions released today by investment bankers Petsky Prunier.

According to Petsky Prunier's research, the companies making the most acquisitions -- and some of their purchases -- include:

AOL: Bebo, a social networking site; Goowy Media, a widget development platform, and Perfiliate Technologies, an affiliate network.

Microsoft: Farecast.com, an online travel search engine, and Rapt, advertisement management software.

WPP Group: Integrated Media Measurement, which has a media measurement system that links media exposure to consumer action, and Yankelovich, a consumer research company.

Aegis Group: AdWatch, a Russian Internet advertising agency, and Globlet, a Thailand search marketing agency.

Havas Advertising: Kadium, a San Francisco digital ad agency, and Shake, a promotion marketing agency based in Chatham, NJ.

A look at the marketing, advertising, and digital media sectors shows the most money was exchanged for digital media companies. There were 78 transactions involving digital media companies totaling $6.3 billion, the firm reported.

Of those deals involving digital media companies, more than one-half involved user-generated or social media businesses. Those deals included AOL's acquisition of Bebo and Goowy Media, and Buzznet's purchase of Idolator.

In all, the Wall Street firm identified 398 deals valued at $19.7 billion involved marketing, advertising, and digital media companies for the first half of this year. Compared to the same period in 2007, the number of deals was up this year by 21 percent but the total transaction dollar volume was down by 26 percent. It said the drop in the value of transactions was due to two factors: this year's soft economy and two large deals last year with Microsoft's acquisition of aQuantive and Google's purchase of DoubleClick for $3.1 billion. (The Google-DoubleClick deal closed earlier this year, but was included by Petsky Prunier in the 2007 tally.)

As expected, no mention of the deal that didn't happen: Microsoft-Yahoo.

Or who's next.

Posted by Anna Maria Virzi at 4:24 PM | Permalink | Comments (0)

June 16, 2008

Yahoo-Google Confounds Digerati, Marketers Universally Miserable

One hundred hours later, opinion makers still can't agree on whether Yahoo's search ads deal with Google was a brilliant move long overdue or the beginning of the end.

For those in the latter camp, perhaps the most stinging indictment came from Joe Nocera, who wrote in the Times that Yahoo has "chosen to become a pawn of the most dominant company on the Internet." That's a strong remark, given the deal allows Yang & Co. to retain a control lever they can use to ratchet up monetization when flagging earnings seem to call for it.

The more they use that lever, the less pleased marketers will be. Many fear price hikes as Google boosts its control of search ad spending to 90 percent or more. Increases are probably not around the corner however, except insofar as advertisers give up on Panama and spend more on Google, thus bidding keywords higher. Under that scenario, Google will encounter less pressure to create competitive value for advertisers. That could manifest in higher campaign costs down the road.

As distasteful as Google's embrace is to Yahoo, it's nothing compared to what Microsoft's feeling -- especially given it lit the fuse on the bomb that just blew up in its face.

Indeed, if the six-month drama surrounding Yahoo's fate were a drawn-out Looney Tunes episode, the screen would now display a blackened Wile E. Coyote (Microsoft, a.k.a. Eatibus Anythingus) moments after an elaborately concealed explosive device detonates on top of him. The singed coyote can only look on in despair as Road Runner (Google, a.k.a. Hot-rodicus Supersonicus) casually polishes off the platter of bird seed laid as bait. The comparison breaks down a bit at this point, since Yahoo clearly has to be both the pile of Acme brand TNT and the bird seed.

Whatever. The big question now is, what's Wiley planning next? It was only a year ago that its loss of DoubleClick in a fierce bidding war with Google drove Microsoft to hotly pursue a purchase of much larger aQuantive. There is no acquisition target bigger than Yahoo, but many smaller snacks remain on the table -- for instance AOL, Facebook, ValueClick, AdBrite, Tribal Fusion, and Specific Media.

Finally, many believe an eventual acquisition of Yahoo is still very much in the company's plans, and that Yahoo's Google deal has merely bought it time. It's entirely possible regulators will block the relationship on anti-competitive grounds, in which case pressure will mount for Yahoo to return to the negotiating table.

Posted by Zachary Rodgers at 2:09 PM | Permalink | Comments (1)

June 5, 2008

Ford and Microsoft Sync Up for Viral Roadtripping

Microsoft has teamed with Ford for a highly experiential, super soft-sell microsite around Microsoft SYNC.

SYNC is a voice-actived gizmo for your car that's kind of like an iPod crossed with a Blackberry: it does music, text, and telephone. Cool, but it's a sell with a high educational curve.

Sync My Music, which lives on MSN, features a game, tons of content and a number of video webisodes about Kim and Seana, two music-obsessed girls, who road-trip across America in a SYNC equipped Ford in their respective quests to become a singer/songwriter (Kim DiVine is the real thing, actually), or to hook up with hot male indie band members.

The game unlocks additional content such as wallpaper and MP3s; the Explore section of the site is a region-by-region guide to the myriad cities the girls visit in their travels. It contains info on local clubs and bands and planning your own road trip. Which may prove difficult, as most of the links are crosswired. Select NYC's hippest bands, for example, and you land on Atlanta's arenas, clubs and cafes.

Oh, well. Given current gas prices, you probably weren't really going to do the roadtrip thing this summer, anyway.

Microsoft wants users to digg, blog and forward the site to a friend. Given the chicks meet popular local indie bands from time to time, the viral has got some real potential. Not just from the fans, but from the bands, who are promoting the heck out of the site on MySpace already.

Posted by Rebecca Lieb at 2:41 PM | Permalink | Comments (1)

June 3, 2008

MSN Jumps on Celebrity Dirt Pile in Pairing with BermanBraun

BermanBraun, the studio launched by former Yahoo entertainment chief Lloyd Braun and film industry vet Gail Berman, has entered a deal with Microsoft to create an MSN-branded celebrity gossip and entertainment site. Kara Swisher first reported the launch yesterday, along with the tidbit that BermanBraun will also produce a daily "Lunacy Report" roundup up weird news appearing on Yahoo. Sounds very similar to Yahoo's recently-folded "the 9," which ran for two years but now redirects to Yahoo Entertainment.

MSN is the last of the traditional portals to do the gossip destination thing, having previously taking the approach of integrating its coverage of such stories as Bill Murray's infidelities with harder news content. The new site will join a congested field that also includes AOL's TMZ, PerezHilton.com and Yahoo's OMG. BermanBraun will share ad representation with Microsoft, Swisher also reported.

Posted by Zachary Rodgers at 4:56 PM | Permalink | Comments (0)

WSJ: Icahn Seeks Yang's Ouster

In the latest volley, Yahoo investor Carl Icahn is calling for the ouster of Yahoo's chief executive Jerry Yang, according to wsj.com.

Icahn has previously called for the replacement of Yahoo's board, which includes Yang.

The latest report comes a day after a Delaware judge unsealed a class action lawsuit against Yahoo's board and Yang. The suit alleges Yahoo's board set up "roadblocks" to Microsoft's proposed acquisition of Yahoo, especially an expensive employee severance package.

A copy of the unsealed lawsuit can be found at the Web site of Bernstein Litowitz Berger & Grossmann, the firm suing Yahoo on behalf of on behalf of Detroit's Police and Fire Retirement System, Detroit's General Retirement System, and other Yahoo shareholders. "Yang convinced the [Yahoo] board to adopt change-in-control employee severance plans that impose tremendous cost and risks for an acquirer, throwing sand in the gears of Microsoft's plans for a smooth integration," the lawsuit alleges.

Posted by Anna Maria Virzi at 4:18 PM | Permalink | Comments (0)

May 28, 2008

Will Microsoft Acquire a Directories Giant?

[UPDATED: Some disagreement in the comments over my use of a Compete chart below, so I've added data from ComScore].

Shares of U.K.-based Yell Group are up on rumors Microsoft has approached the directories publisher about a possible sale. The acquisition, if it came to fruition, would be Microsoft's first merger in the local business and residential look-up arena, and could be interpreted as a play for search share. For instance, Yell's online properties -- including Yell.com in the U.K., YellowBook.com in the U.S., and PaginasAmarillas.es in Spain -- could carry Microsoft Maps and local listings, along with geo-targeted advertising. And Yell's sales force could upsell local marketers on Microsoft's other channels.

Even so, YellowBook.com is hardly the leader in the space, particularly in the U.S.

According to ComScore, YellowBook.com's April traffic pales next to category leaders YellowPages.com (AT&T) and SuperPages.com (Idearc). SuperPages.com is the dominant online yellow pages player with over 30 million unique. However YellowBook.com boasts the highest growth rate, having bean-stalked 156 percent since April 2007 to over 14 million U.S. uniques.

And here's Compete's traffic comparison, which mainly goes to show how utterly hopeless an endeavor independent traffic verification still is.

What a sale to Microsoft would mean for Yell's working environment may be a point of some nervousness for the company's staff. The firm was just awarded a ninth place ranking on the Financial Times' list of the U.K.'s best workplaces.

Posted by Zachary Rodgers at 1:53 PM | Permalink | Comments (8)

May 27, 2008

Quote of the Day: Tim O'Reilly

"So let's assume that Google has won at search, or close enough to make no difference. Is Microsoft better off trying to reimplement cat and ls [old UNIX utilities], or trying to figure out what's still missing from the Internet Operating System? While they are locked in penis envy, all the really cute girls are going out with startups."

-Tim O'Reilly, arguing Microsoft's search obsession has distracted it from important work it could be doing in service of Web users.

Posted by Zachary Rodgers at 12:59 PM | Permalink | Comments (1)

May 20, 2008

Microsoft, Post-Gates

Stopped by to hear tech journalist Mary Jo Foley discuss her new book, "Microsoft 2.0, How Microsoft Plans to Stay Relevant in the Post-Gates Era."

On July 1, Bill Gates will give up his day-to-day responsibilities at Microsoft. As part of the transition, Lotus Notes inventor Ray Ozzie was named chief software architect in 2006, put in charge of product oversight.

However, Foley sees Ozzie as a behind-the-scenes player rather than Microsoft's public face. "Everyone says he's a brilliant guy, but he cannot deal with people," Foley said, speaking at a New York Software Industry Association meeting last night.

Foley said Microsoft has become more closely guarded about projects underway, behaving more like secretive Apple.

All the while, Microsoft is working on innovations typically unknown to the larger tech community. "Data portability -- Microsoft is actually doing stuff in that space. A lot of times it [Microsoft] gets dinged for being complacent, but it's in the pipeline. They are just not ready to announce it," she said.

What about Microsoft's proposal to acquire Yahoo's search-ad business? "It would make a lot more sense for Microsoft to sell its online ad business to Yahoo and have a joint venture," she said. "Yahoo would be crazy to sell its search business."

Posted by Anna Maria Virzi at 8:12 AM | Permalink | Comments (0)

May 19, 2008

Microsoft Memo: We'll Win in Display

Most analysts and investors still believe Microsoft's bid for Yahoo was strictly a search play. Display ads -- if they figured into the strategy at all -- were mere garnish to the main dish. Microsoft needs to compete harder with Google, and Google's power is contingent on its search market share. End of story, right?

Not exactly. In a memo to staff, Microsoft Platforms & Services President Kevin Johnson, identified the company's top ad-related priorities ahead of its Advance08 advertising conference this week. Among those priorities: "Win in display advertising."

"We have an advantage in tools, agency assets/relationships and a team laser-focused on capturing the display ad platform opportunity. As we build from a position of strength, we will increase engineering resources to drive even more innovation," Kevin wrote.

It's an area where Microsoft needs to show it means business. After all, the company has no fewer than five display platforms, including the MSN Network, DrivePM (courtesy of aQuantive), MSN Direct Response, AdECN, and high-profile individual relationships with sites like Digg, Facebook and WSJ Digital. Yet it has not yet consolidated those offerings into a unified platform offering, the way Yahoo, through AMP, and AOL, through Platform A, have both begun to do with their sprawling display ad holdings.

ClickZ will be on the floor at Microsoft's Advance08 event tomorrow and Wednesday, so check back with us for insights on how Microsoft plans to position its ad platforms and services in the wake of the Yahoo deal implosion.

Posted by Zachary Rodgers at 1:53 PM | Permalink | Comments (0)

May 18, 2008

Microsoft-Yahoo: A New Spin

Two weeks after withdrawing its bid for Yahoo, Microsoft has returned with another proposal: acquire only a portion of Yahoo.

Microsoft, in a statement, said it continues to "explore and pursue its alternatives to improve and expand its online services and advertising business."

The Wall Street Journal, quoting unnamed sources, reports Microsoft's proposal would involve Yahoo display ads sold by Microsoft next to Yahoo research results. That proposal appears to be in response to Yahoo's decision to test Google ads on its own search results pages.

Yahoo, in a carefully worded news release titled, "Yahoo! Remains Open to Value Maximizing Transactions," said it "confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo at this time." (Note the use of the word, "all" here.)

Yahoo said it intends to evaluate alternatives, including any proposal from Microsoft, that would be in the best interest of stockholders.

This latest development comes days after Yahoo investor Carl Icahn made noise to launch a battle and replace Yahoo board members with an alternate board unless talks are renewed with Microsoft.

Posted by Anna Maria Virzi at 8:49 PM | Permalink | Comments (0)

May 5, 2008

Is the Stage Set for an AOL Sale?

With the dust settling around Microsoft's abortive bid for Yahoo, one thing's quickly becoming clear: The self-destruction of this particular takeover attempt is not the end of Yahoo's odyssey but merely a mid-way point. Analyst and blogger speculation this morning has anticipated a variety of outcomes for Yahoo, including a deal with News Corp (though talks have reportedly "cooled"), an acquisition of ValueClick, and even a late third act consummation with Microsoft.

The next big Web company to sell may not be Yahoo, however. Last month we learned Yahoo was closing in on a deal to imbibe AOL. Presumably those talks are still underway, and word this morning is Microsoft has already entered the fray. Google may also be interested in AOL, which would give it the reach in display that has so far eluded it.

Microsoft seems the best bet to triumph in any competitive bidding process, given it's already flashed its money roll to investors and the business community. Plus it really does crave search market share. And while AOL's 5 percent wedge of the U.S. search pie is modest by comparison to Yahoo's 21 percent, Microsoft could nearly match Yahoo by buying both AOL and Ask. Sweetening the deal for Microsoft, buying those two entities would would end Google's ad distribution deals with them, cutting into its profits.

Additionally, any company to combine with AOL will command the display ad market. A combined AOL-Yahoo would be a true powerhouse, as the companies are #1 and #2 in display. A combined Google-AOL would create huge inroads into display for a company that's so far still just barely out of lip-service territory in the category.

Posted by Zachary Rodgers at 2:25 PM | Permalink | Comments (0)

May 3, 2008

Microsoft Withdraws Bid for Yahoo

Microsoft on Saturday withdrew its bid to acquire Yahoo, opting against raising its offer $5 billion more or pursuing a hostile takeover.

Microsoft CEO Steven Ballmer, in a letter to Yahoo CEO Jerry Yang, said he was concerned that Yahoo would take actions that would make the company undesirable to Microsoft. Of particular concern: Yahoo's decision to test Google's search ads on its own results pages, and the possibility that Yahoo would work more closely with Google on paid search going forward.

Such an arrangement, Ballmer wrote, "would fundamentally undermine Yahoo!’s own strategy and long-term viability by encouraging advertisers to use Google as opposed to your Panama paid search system."

He continued: "This would also effectively enable Google to set the prices for key search terms on both their and your search platforms and, in the process, raise prices charged to advertisers on Yahoo," Ballmer said.

Yahoo Chairman Roy Bostock fired back a statement, reiterating that Microsoft's bid undervalued Yahoo. "We remain focused on maximizing shareholder value and pursuing strategic opportunities that position Yahoo! for success and leadership in its markets," Bostock said in a news release.

On Feb. 1, Microsoft offered to pay $44.6 billion or $31 a share for Yahoo. Since then, Microsoft said it agreed to raise its bid by $2 per share, but Yahoo wanted another $4.

Posted by Anna Maria Virzi at 9:39 PM | Permalink | Comments (0)

May 2, 2008

More Micro-heuvering: WSJ Contracts Nasty Case of "Coulds"

Microsoft and Yahoo continue to negotiate heavily through the medium of the Wall Street Journal, forcing reporters Kevin Delaney, Matthew Karnitschnig, and Robert Guth into spastic repetition of the word "could."

Microsoft could announce it's backing out of the deal, we heard yesterday. The word this morning is it's leaning toward going hostile as early as today, but "could change tack." Meanwhile, Yahoo could announce an expansion of its Google search ad trial by next week. Such a deal "could go forward" even in the event of a hostile bid, WSJ promises.

What about Yahoo/AOL? Could happen. After all, it's been just three weeks since the firms were "closing in on a deal" to combine operations.

One thing's clear: All us losers that aren't the Wall Street Journal could have some real Microsoft/Yahoo news to report as early as any minute.

Posted by Zachary Rodgers at 12:53 PM | Permalink | Comments (0)

April 24, 2008

Is Verbing the Sincerest form of Flattery?

First Google said it's not OK to "Google" someone or something on the Web. Now Microsoft in the Netherlands says it's not OK to use the verb "MSN-ing" as a synonym for sending messages through instant messenger. I'm not sure how to say IM in Dutch, but "MSN-ing" doesn't exactly roll off the tongue.

To add insult to injury to Microsoft, while pursuing legal action in the Netherlands the company was shown a list of existing domain names related to "msn" such as msncam.com, msntest.com, msn-beta.com, and 62 others. When Microsoft executives said they were unfamiliar with the list, a judge reportedly told them to "Google" more.

Posted by Enid Burns at 12:01 PM | Permalink | Comments (0)

April 9, 2008

Microsoft/Yahoo Maneuvers: Curiouser and Curiouser

There's seemingly no end to the improbable machinations swirling around Microsoft's unsolicited bid for Yahoo. A flurry of late breaking rumors and announcements today conjured up a series of outlandish scenarios, including the combination of Yahoo and AOL's Internet operations, a possible joint bid for Yahoo by Microsoft and News Corp, and the (confirmed) outsourcing of a portion of Yahoo's search ads to Google.

The very latest developments, reported by WSJ this evening, are that (1) Yahoo and Time Warner's AOL are busy "closing in on a deal" to combine their businesses, yet another desperate maneuver to escape Microsoft's embrace; and (2) Microsoft is in "serious talks" with News Corp. about a plan to combine forces in a bid for Yahoo. No additional details were mentioned about this previously undiscussed scenario.

According to the report, Time Warner would contribute AOL along with a cash investment in exchange for a 20 percent stake in the company. The deal would be contingent on the approval of Yahoo's shareholders.

The latest rumors come at the end of a frenetic day for Yahoo, which this morning announced the planned acquisition of analytics platform IndexTools and this afternoon reluctantly stated it would conduct a test of Google's search ads on its own results pages.

Posted by Zachary Rodgers at 10:05 PM | Permalink | Comments (0)

April 4, 2008

Microsoft Gives Deadline to Yahoo Board

Microsoft CEO Steve Ballmer has given Yahoo's board three weeks to approve Microsoft's $44.6 billion bid for Yahoo. If the board doesn't sign off on the bid, Ballmer said Microsoft will take its case to Yahoo's shareholders.

"The substantial premium reflected in our initial proposal anticipated a friendly transaction with you," Ballmer wrote to Yahoo's board members. "If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal."

Yahoo CEO Jerry Yang and chairman Roy Bostock, in a statement today, reiterated that Microsoft's bid undervalues Yahoo. They insisted they aren't opposed to Microsoft taking over Yahoo -- they just want the bid to reflect Yahoo's value.

Since Microsoft made the bid two months ago, Ballmer said the public equity markets and overall economic conditions have weakened. "At the same time, public indicators suggest that Yahoo!’s search and page view shares have declined. Finally, you have adopted new plans at the company that have made any change of control more costly," he wrote.

In response, Yahoo's executives replied that the company has continued to launch new products and to take actions "that leverage our scale, technology, people and platforms as we execute on the strategy we publicly articulated."

The Yang-Bostock letter takes a personal tone. "We regret to say that your letter mischaracterizes the nature of our discussions with you," they wrote. "Moreover, Steve, you personally attended two of these meetings and could have advanced discussions in any way you saw fit."

Plus, Yang and Bostock point out that Microsoft's stock price has declined since its bid, meaning that the value of Microsoft's proposal is lower than it was two months ago.

On Friday, Bloomberg.com reported that Microsoft may cut its $44.6 billion bid for the company, suggesting the economic slowdown could hurt Yahoo's business.

Earlier Friday, Reuters said Microsoft was "evaluating" its bid to purchase the company. Reuters, quoting unnamed sources, pointed out that Yahoo has lost key personnel since Microsoft made its Jan. 31 offer, plus other factors.

Posted by Anna Maria Virzi at 10:31 PM | Permalink | Comments (0)

April 1, 2008

Microsoft Unlikely to Raise Yahoo Bid: WSJ

Having evidently determined it has a better grip on Yahoo's shareholders than Yahoo itself does, Microsoft has decided not to raise its bid for the Internet giant as it had been rumored to do, Wall Street Journal reported this morning. Declines in Microsoft's market value since it made its $45 billion cash and stock offer two months ago have reduced the real value of the bid to around $42 billion. Many expected Microsoft would counter a little higher and seal the deal after Yahoo's rejection of the offer on the grounds it undervalues the company.

Of course, we have to take the Journal's sources on their word that this latest leak isn't planted. "Such pronouncements are standard in deal negotiations but people close to Microsoft insist the stance isn't posturing," the story notes.

Posted by Zachary Rodgers at 11:01 AM | Permalink | Comments (0)

March 28, 2008

Could China Block Microsoft-Yahoo Deal?

Microsoft's proposed purchase of Yahoo could encounter a roadblock in China, "The New York Times" reports today.

An antimonopoly law, which takes effect August 1, strengthens Chinese oversight of acquisitions involving foreign businesses acquiring or investing in Chinese businesses.

Chinese regulators will have the authority to review the Microsoft-Yahoo acquisition's impact on Alibaba.com, an e-commerce company in China. That's because Yahoo invested $1 billion in Alibaba for a 40 percent stake three years ago.

Quoting legal specialists, the Times reports that China's new law could match the powers that regulators in the European Union and the United States now have to review foreign mergers for antitrust concerns.

Posted by Anna Maria Virzi at 11:18 AM | Permalink | Comments (0)

March 10, 2008

Murdoch: News Corp. Won't Fight Microsoft for Yahoo

Speaking at the Bear Stearns Media Conference in Florida today, News Corp. Chairman and CEO Rupert Murdoch put to bed rumors of a possible tie-up with Yahoo, stating, "We're not going to get into a fight with Microsoft, they have a lot more money than us."

He went on to say that Yahoo had "missed out" in the search arena by failing to invest in Overture quickly enough after acquiring it in 2003. He added "We're very happy to be in the Google camp; they sell our search advertising and pay us well for it."

Speaking further on social networks, Murdoch said that existing sites should attempt to introduce social aspects to their offerings. He suggested that News Corp. may attempt something along the social network lines with its Wall Street Journal site, and that users would be "interested to talk to each other about their investments."

When asked about future deals, Murdoch said he was not looking for big acquisitions, but may be tempted into some smaller ones. He added that he was cautious of the high price tags assigned to online properties at present, and that it would be "very easy to throw away a lot of money on Internet sites."

Regarding the current financial climate, News Corp. is apparently in "good shape" to face a weakened economy, having reduced its dependency on advertising from 41 percent to 23 percent of revenue.

Posted by Jack Marshall at 12:46 PM | Permalink | Comments (0)

March 7, 2008

Greener Marketing: It's a Brand Thing, Too

Marketers need to start thinking harder about schwag for the sake of the environment, as well as their brands.

The sheer amount of conference bag stuff always boggles the mind, particularly at evens as massive as SXSW. Of course, the sponsor fees behind stuffing all this stuff into those totes goes a long way toward making these events possible.

SXSW sent out a pre-event e-mail to participants with pointers on making the event greener, pointing out opportunities for recycling and other efforts conference-goers could take toward reducing - somewhat - the event's carbon footprint.

But boy, is my bag full. And it's full of stuff that doesn't need to be there. I'll single out Microsoft as an example (because they're big enough to take it, but are hardly the only offender).

Microsoft's extremely cool Silverlight plug-in is a topline SXSW sponsor. That doesn't excuse including a Silverlight CD, encased in a hefty plastic box, in each of tens of thousands of bags. Not when this slim little plug-in is readily available as a fast, free download from the Web.

It's not just a matter of waste (calling to mind AOL's well-publicized earlier excesses), it's also become a matter of branding (particularly in an environment and a city as socially conscious as SXSW and Austin). Microsoft paid a pretty penny to manufacture all those CDs, and more still to get them slipped into bags -- so they could be slipped into the trash. An alternative might have been a simple sheet with information about the product and how to get it for free.

Result? Negative buzz. That's bad for the brand, not just the environment.

Posted by Rebecca Lieb at 2:16 PM | Permalink | Comments (0)

February 25, 2008

Campaign Tracker, for Politicos on the Go

With the election year upon us, some voters may want to get their information and coverage of the big event wherever they go. Microsoft is looking to capitalize on voters looking for breaking news by sponsoring a free Campaign Tracker application for Windows enabled Mobile phones..

NewsGator is providing its Mobile Reader system and widget services, while the news organizations Washingtonpost.com and Newsweek will update the political news via RSS feeds. Campaign Tracker was created by NewsGator's Software-as-a-Service division which handles syndication services, and Microsoft's Mobile2Market program. It'll run on Microsoft Windows Mobile 5 and 6 devices, as well as Microsoft Pocket PC devices. The service itself will go online early next week.

Post updated to correct the application's name from Candidate Tracker to Campaign Tracker.

Posted by MatthewNelson at 10:09 PM | Permalink | Comments (0)

February 12, 2008

Microsoft, Yahoo Anuncian Mobile Deals in Barcelona

At the Mobile World Congress this week in Barcelona, Spain, Microsoft and Yahoo both made separate announcements touting their mobile offerings.

Yahoo used the show to demonstrate its forthcoming Yahoo oneConnect service for mobile devices using Yahoo Go 3.0 and Yahoo’s new mobile home page, expected to be available in Q2 2008. The oneConnect service will aggregate social network connections from sites like Facebook, MySpace, LinkedIn, along with news, weather and other alerts. The service will also provide e-mail, instant messaging, text messaging connections.

Separately, Microsoft announced it had signed European mobile publishers L'Equipe, Boursier.com and Autonews in France to its mobile ad platform. The company also said mobile operator Orange picked Microsoft as its ad serving partner for mobile display advertising in Spain. What wasn't clear from the news out of Spain was whether this is a mobile ad management or serving deal only, or whether it will involve ad sales representation.

Posted by MatthewNelson at 4:02 PM | Permalink | Comments (0)

February 6, 2008

Microsoft Musical Chairs: Berkowitz Out, McAndrews to Run All Online Services?

Microsoft is mum on reports today that Steve Berkowitz, head of Online Services, will shortly step aside to make room for either aQuantive chief Brian McAndrews or his boss, Kevin Johnson, who heads Platforms and Services. The replacement would be part of one of Microsoft's regularly scheduled reorgs that may also bring changes in its Windows division (Mary Jo Foley reports Windows product marketing EVP Michael Sievert will move on, a casualty of the Vista's generally poor reception with consumers). WSJ and CNET cited internal sources saying the organizational shuffle could come as soon as next week.

Two big questions: Will Berkowitz's Online Services unit will be merged completely into Johnson's, and will McAndrews' Digital Advertising Solutions group gobble it up? Hopefully both will happen, for both marketers' and Microsoft's sake.

That's the way it should've gone back in August, when Microsoft created Advertiser and Publisher Solutions to house all its new aQuantive properties along with Microsoft AdCenter. McAndrews was named to lead the unit, while Berkowitz's Digital Advertising Solutions sales force was oddly left on its own. That just didn't make sense, and it looks like Microsoft's about to correct the error.

No indication in either report whether Berkowitz will be jettisoned or offered a new post.

Posted by Zachary Rodgers at 12:02 PM | Permalink | Comments (0)

February 4, 2008

Mobile in a Combined Microsoft, Yahoo

In Microsoft's conference call last week discussing its offer to purchase Yahoo for $44.6 billion, mobile was cited as a key asset. Mobile assets combined make a significant footprint in the mobile ecosystem. That's because currently, "there really is no one-thousand pound gorilla in mobile," said Boris Fridman, CEO of Crisp Wireless, in the context of the mobile presence both companies can merge into.

Here's the rundown on Microsoft's mobile universe: Windows Mobile, an operating system with a full suite of productivity software such as Outlook, Word, and Excel, sits at the core of Microsoft's mobile footprint. MSN began advertising on its mobile portal in December, and in the U.K. in January. Its Live Mobile offering, which Sprint uses in a deal with Microsoft, runs pay-per-call ads.

A string of acquisitions including ScreenTonic, Tellme, and MotionBridge bolstered existing properties as well as filled out lacking areas. In a surprising move, Microsoft incubated and then spun off ZenZui, a graphical user interface browsing package, now called Zumobi.

Yahoo has spent time building out its own mobile offering with a multi-platform presence. The search engine began offering keyword-based mobile search ads in fall of 2006. Then it brought out OneSearch the following spring. It also developed a content-driven portal Yahoo Go, which just released a 2.0 version. Sources say Yahoo Go has been perceived as a failure inside the company. Yahoo also brings to the table several relationships with international carriers. In January it signed a deal with T-Mobile U.K., which adds to its existing relationship with competing carrier Vodafone. A separate deal includes relationships with Six carriers in Asia.

If Microsoft and Yahoo's combined mobile presence becomes the 1,000 pound gorilla in mobile, will it be a game-changer? Probably not, according to some industry sources. It will offer a great deal of inventory in multiple formats and in one place. Microsoft can streamline media buying through its global sales force and ad-buying dashboard through its Digital Advertising Solutions Group. It may become the best way to do multi-channel buys, and Microsoft can build mobile network beyond its core sites. It won't take over all of mobile, and pure-play solutions providers in the space may still be the best options for content owners, media buyers, and advertisers looking to build a presence.

Posted by Enid Burns at 4:31 PM | Permalink | Comments (0)

February 3, 2008

Google Weighs In On Microhoo: It May Be Evil

David Drummond, Google SVP corporate development and chief legal officer, issued the company's official response to Microsoft's proposed acquisition of Yahoo this afternoon. Essentially, Google's position is combining its two main competitors could be bad for the Internet...even border on evil.

Drummond says in the official Google statement:

"It's about preserving the underlying principles of the Internet: openness and innovation.

"Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacent markets.

"Could the acquisition of Yahoo! allow Microsoft -- despite its legacy of serious legal and regulatory offenses -- to extend unfair practices from browsers and operating systems to the Internet? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services? Policymakers around the world need to ask these questions -- and consumers deserve satisfying answers.

"This hostile bid was announced on Friday so there is plenty of time for these questions to be thoroughly addressed. We take Internet openness, choice and innovation seriously. They are the core of our culture. We believe that the interests of Internet users come first -- and should come first -- as the merits of this proposed acquisition are examined and alternatives explored."

Posted by Rebecca Lieb at 5:25 PM | Permalink | Comments (0)

February 1, 2008

Ad Network Integration: Can Microsoft Hack It?

The audience consolidation under a combined Yahoo/Microsoft would be extraordinary, and the integration job extraordinarily complex. The merged entity would combine portals MSN and Yahoo, plus BlueLithium, Right Media, aQuantive's DrivePM, adECN, mobile network Screen Tonic, game network Massive, and both parties' expanding network relationships with the likes of Viacom, Facebook, Digg, CNBC and Wall Street Journal Digital. Crazy right?

I just got off the phone with a few agency execs, trying to gauge their reaction to the deal from a media buying/planning perspective. More on that later, but on the topic of integration the consensus is that Yahoo's done a much better job absorbing recent acquisitions (BlueLithium, Right Media) into its existing ad sales operations than Microsoft has (AdECN, aQuantive's DrivePM).

Much of Yahoo's success with ad integrations has to do with its ingrained understanding of what advertisers want. It'll take humility for Microsoft, which still doesn't really speak the language of Madison Avenue, to let that sales savvy rub off on it -- to say to Yahoo, "You're the ad expert. You tell us what to do."

Posted by Zachary Rodgers at 4:12 PM | Permalink | Comments (0)

Microsoft Wants to Buy Yahoo: Convergence, Continued

There have been rumors of late about some sort of Microsoft/Yahoo hookup -- and here it is. Microsoft just tendered a $31/share bid for Yahoo. All of Yahoo.

It's about the advertising. From the press release: "The online advertising market is growing at a very fast pace, from over $40 billion in 2007 to nearly $80 billion by 2010. The resulting benefits of scale along with the associated capital costs for advertising platform providers make this a time of industry consolidation and convergence. Today this market is increasingly dominated by one player. Together, Microsoft and Yahoo! can offer a competitive choice while better fulfilling the needs of customers and partners."

Steve Ballmer, Microsoft CEO said in a statement: "We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market."

After the jump, Ballmer's letter to Yahoo board members. We'll be following developments closely, promise.

Board of Directors
Yahoo! Inc.
701 First Avenue
Sunnyvale, CA 94089
Attention: Roy Bostock, Chairman
Attention: Jerry Yang, Chief Executive Officer

Dear Members of the Board:

I am writing on behalf of the Board of Directors of Microsoft to make a proposal for a business combination of Microsoft and Yahoo!. Under our proposal, Microsoft would acquire all of the outstanding shares of Yahoo! common stock for per share consideration of $31 based on Microsoft's closing share price on January 31, 2008, payable in the form of $31 in cash or 0.9509 of a share of Microsoft common stock. Microsoft would provide each Yahoo! shareholder with the ability to choose whether to receive the consideration in cash or Microsoft common stock, subject to pro-ration so that in the aggregate one-half of the Yahoo! common shares will be exchanged for shares of Microsoft common stock and one-half of the Yahoo! common shares will be converted into the right to receive cash. Our proposal is not subject to any financing condition.

Our proposal represents a 62% premium above the closing price of Yahoo! common stock of $19.18 on January 31, 2008. The implied premium for the operating assets of the company clearly is considerably greater when adjusted for the minority, non-controlled assets and cash. By whatever financial measure you use - EBITDA, free cash flow, operating cash flow, net income, or analyst target prices - this proposal represents a compelling value realization event for your shareholders.

We believe that Microsoft common stock represents a very attractive investment opportunity for Yahoo!'s shareholders. Microsoft has generated revenue growth of 15%, earnings growth of 26%, and a return on equity of 35% on average for the last three years. Microsoft's share price has generated shareholder returns of 8% during the last one year period and 28% during the last three year period, significantly outperforming the S&P 500. It is our view that Microsoft has significant potential upside given the continued solid growth in our core businesses, the recent launch of Windows Vista, and other strategic initiatives.

Microsoft's consistent belief has been that the combination of Microsoft and Yahoo! clearly represents the best way to deliver maximum value to our respective shareholders, as well as create a more efficient and competitive company that would provide greater value and service to our customers. In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together. These discussions were based on a vision that the online businesses of Microsoft and Yahoo! should be aligned in some way to create a more effective competitor in the online marketplace. We discussed a number of alternatives ranging from commercial partnerships to a merger proposal, which you rejected. While a commercial partnership may have made sense at one time, Microsoft believes that the only alternative now is the combination of Microsoft and Yahoo! that we are proposing.

In February 2007, I received a letter from your Chairman indicating the view of the Yahoo! Board that "now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction." According to that letter, the principal reason for this view was the Yahoo! Board's confidence in the "potential upside" if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment. A year has gone by, and the competitive situation has not improved.

While online advertising growth continues, there are significant benefits of scale in advertising platform economics, in capital costs for search index build-out, and in research and development, making this a time of industry consolidation and convergence. Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers. Synergies of this combination fall into four areas:

-- Scale economics: This combination enables synergies related to scale
economics of the advertising platform where today there is only one
competitor at scale. This includes synergies across both search and
non-search related advertising that will strengthen the value
proposition to both advertisers and publishers. Additionally, the
combination allows us to consolidate capital spending.
-- Expanded R&D capacity: The combined talent of our engineering
resources can be focused on R&D priorities such as a single search
index and single advertising platform. Together we can unleash new
levels of innovation, delivering enhanced user experiences,
breakthroughs in search, and new advertising platform capabilities.
Many of these breakthroughs are a function of an engineering scale that
today neither of our companies has on its own.
-- Operational efficiencies: Eliminating redundant infrastructure and
duplicative operating costs will improve the financial performance of
the combined entity.
-- Emerging user experiences: Our combined ability to focus engineering
resources that drive innovation in emerging scenarios such as video,
mobile services, online commerce, social media, and social platforms is
greatly enhanced.

We would value the opportunity to further discuss with you how to optimize the integration of our respective businesses to create a leading global technology company with exceptional display and search advertising capabilities. You should also be aware that we intend to offer significant retention packages to your engineers, key leaders and employees across all disciplines.

We have dedicated considerable time and resources to an analysis of a potential transaction and are confident that the combination will receive all necessary regulatory approvals. We look forward to discussing this with you, and both our internal legal team and outside counsel are available to meet with your counsel at their earliest convenience.

Our proposal is subject to the negotiation of a definitive merger agreement and our having the opportunity to conduct certain limited and confirmatory due diligence. In addition, because a portion of the aggregate merger consideration would consist of Microsoft common stock, we would provide Yahoo! the opportunity to conduct appropriate limited due diligence with respect to Microsoft. We are prepared to deliver a draft merger agreement to you and begin discussions immediately.

In light of the significance of this proposal to your shareholders and ours, as well as the potential for selective disclosures, our intention is to publicly release the text of this letter tomorrow morning.

Due to the importance of these discussions and the value represented by our proposal, we expect the Yahoo! Board to engage in a full review of our proposal. My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience. Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!'s shareholders are provided with the opportunity to realize the value inherent in our proposal.

We believe this proposal represents a unique opportunity to create significant value for Yahoo!'s shareholders and employees, and the combined company will be better positioned to provide an enhanced value proposition to users and advertisers. We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favorable reply.

Sincerely yours,

Steven A. Ballmer
Chief Executive Officer
Microsoft Corporation

Posted by Rebecca Lieb at 6:57 AM | Permalink | Comments (0)

November 6, 2007

Windows Live Reaches Next Gen

Microsoft today announced the next generation of Windows Live, offering a single Live ID, and a single, customized download to get Windows Live Mail, Messenger, Spaces, Photo Gallery, Events, and Writer. There's also the ability to connect through Windows Live for Windows mobile, and a way for parents to block inappropriate online content for their kids through Windows Live OneCare Family Safety.

What does this mean for advertisers? "It's Windows Live, a large audience across all these products," said Tim Waddell, director of display product marketing for Microsoft Advertiser and Publisher Solutions group. Microsoft is moving into the direction of social networking through deals with Facebook and Digg, among others, but if it's about the conversations, Waddell said, "We've been having those conversations over e-mail and IM for years."

To demonstrate the reach the Windows Live platform has with consumers, Microsoft released research it conducted with TNS Media Intelligence to track the conversations and interactions users have in Microsoft's playground. Research finds that 60 percent of the Windows Live audience is within the 18 to 34 year-old age bracket. The younger audience is the core advertising demographic said to be difficult to reach.

The research finds users grouped, or netted, communications media categories across Live. The categories include social media, Internet sites, online media, online media on mobile phones, and social media on mobile phones. Microsoft plans to add in Xbox Live and mobile platforms in the mix in the future. Research looked at the retail, movies and entertainment, financial services, and pharmaceutical verticals.

Posted by Enid Burns at 6:02 PM | Permalink | Comments (0)

September 18, 2007

Location-Aware Mobile Search

When you leave your neighborhood, or even time zone, your phone can sense you're in a different service area, yet targeting for advertising and search defaults to your home area unless you tell your phone otherwise. Through a partnership between Sprint and Microsoft, users on the Sprint network can opt-in to an integrated GPS location-aware mobile search service. Additionally, Microsoft will include a version of voice search with visual results by Live Search using Microsoft property Tellme available for download. GPS-enabled search is a permission-based service, subscribers do have to acknowledge the GPS functionality of the phone in order to take part.

While there was no advertising immediately announced about GPS-enabled search, it's ripe for geo-targeted ads. Sprint was an early adopter among U.S.-based carriers to allow advertising on deck. On the Microsoft side, it can't be too hard to make inventory available to advertisers here.

Posted by Enid Burns at 5:00 PM | Permalink | Comments (0)

August 14, 2007

Microsoft Seals AdECN Deal, Too

Just a quick note that, in addition to sealing the aQuantive deal, Microsoft closed on its acquisition of ad exchange AdECN, now a wholly-owned subsidiary of Microsoft. AdECN's 30 employees will report into Microsoft Corporate VP, adCenter Alex Gounares.

Posted by Kate Kaye at 5:30 PM | Permalink | Comments (0)

July 9, 2007

Microsoft Out of FTC Woods Unscathed? What of Yahoo?

Microsoft just might be gloating a little about the fact that the Federal Trade Commission -- apparently -- has not asked for more information regarding its monster $6 billion aQuantive buy. The requisite 30-day period during which the FTC could do so has elapsed.

Google, of course, is withstanding further investigation into its purchase of DoubleClick, widely recognized as the catalyst for Microsoft's aQuantive acquisition, among other activity in the online ad management sector.

As quoted in TheStreet, a Microsoft spokesman confirmed the news and called the DoubleGoo deal a "very different" transaction from the aQuantroSoft buy. (Yes, I think it's funnier in these cases to employ the acquired firms' names in the first syllables.)

Evidently Google sent TheStreet (or other press) a statement Friday in response to inquiries about Microsoft. "The FTC did not 'extend' its 30-day review period," said Google according to the story. What it did do is make a "second request" for more info, with which Google is complying.

24/7 Real Media announced June 15 the 30-day inspection period during which the FTC and U.S. Department of Justice could have requested more information regarding its acquisition by WPP lapsed without request for a prolonged review.

According to the Hart-Scott-Rodino Antitrust Improvements Act, companies must provide information prior to completion of a merger or acquisition to the FTC and DOJ if a transaction and parties involved meet certain criteria. (Learn more about those requirements and how the FTC goes about its investigations in this ClickZ News report.)

This leads to the question, what's up with the review of Yahoo's Right Media buy? Yahoo refused to comment regarding a review a while back when I inquired, but the company did acknowledge, "Yahoo's acquisition of Right Media requires HSR clearance." I've asked Yahoo about it, so I'll let you know what I find out….

Posted by Kate Kaye at 11:06 AM | Permalink | Comments (0)

May 29, 2007

Google and Microsoft Adding Street Level Views to Maps

Both Microsoft and Google are adding new features to their Map applications available online, and frankly both look pretty cool.

And while this is clearly another case of the two high tech giants battling it out for Internet eyeballs, it's interesting to note that the two companies took very different approaches to how they wanted to give users a whole new way to view their map results.

Microsoft is now offering three-dimensional, photo-realistic views of New York City buildings and landscapes via Microsoft Live Search Maps. Using its system, and taking note that Windows Media Player 9 is strictly required, a Live Search Maps user can fly through the New York streets in a gray scale but detailed 3-D map of the city. Google Maps, on the other hand, is now offering its Street View as actual 360 degree photographed images of areas a user might be interested in. The Google Maps Street View images can also be manipulated to swing around your point of view or "move" down the street.

In addition to New York City, Microsoft is planning on providing cityscapes of Austin, Texas; Cape Coral, Fla.; Cincinnati, Ohio; Indianapolis, Ind., including the Indianapolis Motor Speedway; Northampton, England; Ottawa; Savannah, Ga. and Tampa, Fla. Google is starting off its Street View with the San Francisco Bay Area, New York, Las Vegas, Denver and Miami. Google is also launching Mapplets, as a developers tool to enable third party companies to create mini applications that can be displayed on Google Maps. These Mapplets contain a variety of information, from housing listings to crime data, and tools like distance measurement, the company said.

Of course, what tickles me about these two approaches is that it looks like Microsoft spent a lot of man hours and technology on creating a virtual world directly from the real one, while Google just sent somebody out with a camera and told them to take a picture every quarter mile or so. Time will tell which system appeals to users more.

Posted by MatthewNelson at 9:40 PM | Permalink | Comments (0)

May 17, 2007

AOL Tests Vista Gadget

Windows Vista has the ability for content owners and marketers to build desktop widgets to make their platforms more accessible. AOL just released its early version of the AOL Social Mail Gadget at dev.aol.com/mail. The widget gives users one-click, desktop access to e-mail, AIM, photos and video. The top five contacts float to the top so users can immediately message their friends and family.

The widget give AOL desktop visibility to all users. It won't immediately run advertising, but it's not out of the question. "As part of AOL's audience and monetization growth strategy, we are going to look at optimized monetization opportunities surrounding the gadget," said an AOL spokesperson.

Posted by Enid Burns at 4:42 PM | Permalink | Comments (0)

Microsoft's Second Second Life Presence

Millions of Us, a virtual worlds/social media agency, recently launched Microsoft Virtual Studio in Second Life. They're also touting the success of the adjacent Microsoft property Coders' Cove island.

The community-building effort challenged coders to find hidden "eggs" and solve puzzles in order to win access to a mysterious blimp hovering above the area. Winners were accorded 900 square meters of virtual land (their lease is up in November, though).

Which reminds me -- this coming Monday, May 21, ClickZ is sponsoring the first-ever conference wholly devoted to Advertising in Social Media. We're going to be discussing projects in Second Life, social networks, syndication, and much, much more.

Check out the agenda, and if you're in New York, please make every effort to join us. We have an amazing line-up of speakers and one very cool, topical topic.

Posted by Rebecca Lieb at 3:11 PM | Permalink | Comments (0)

May 11, 2007

Microsoft's Strategic Account Summit: Wooing Advertisers

Advertisers, well most of them anyway, want Microsoft to do well in media and to pose a tougher challenge to Google's terrifying ascendancy. So perhaps it's not a huge surprise that attendees at Microsoft's Strategic Account Summit, which took place this week at Redmond headquarters, had mostly good things to say about the event.

"We're always favorably inclined toward them," David Smith, principal at San Francisco-based Mediasmith, told me today. "They're somebody you want to win because of all their capability of bringing together the desktop and all the desktop tools toward digital advertising. It's something you want to see be more seamless. It's going to be a win for the consumer and the advertiser if they win."

Of the Summit, Smith said, "It was a first class treatment of their advertisers and agencies. They had a world class group of speakers."

He said advertisers in attendance had one gripe though -- namely that the event was a bit too heavy on dazzling possibilities for the future, and light on the present realities of buying media from Microsoft. "The only downside is there were a few comments and, I'm inclined to agree, that it would've been nice to see some more stuff about what you can do with them today."

Posted by Zachary Rodgers at 5:36 PM | Permalink | Comments (0)

May 3, 2007

Who Sees the Light in Silverlight?

The blogosphere is abuzz over Silverlight, a just-introduced browser plug-in from Microsoft that promises it can "deliver media experiences and rich interactive applications for the Web that incorporate video, animation, interactivity, and stunning user interfaces."

It also promises full cross-platform integration and "seamless, fast installation for users." CBS will adopt it, so will rich media ad vendors Brightcove and Eyeblaster, and brands including Major League Baseball and Netflix.

Small wonder our curiosity is piqued -- what will the advertising implications be?

Small stumbling block involving end-user implications. I downloaded and installed the plug-in. Several times. It refuses to run on Firefox, Safari or IE on my Mac (or our news editor's Mac).

OK, so we can't experience the wonders of Silverlight on the Web. Let's just download the movie and see what this baby can do.

Would you believe it? (Sadly, yes. It's all just too plausible.) The .wmv movie won't even play in Microsoft's own Window Media Player. Something about the wrong codecs. Handy-dandy open-source VLC to the rescue -- as always.

While Microsoft promises Silverlight is good-to-go for us Mac users, we see things a bit differently.

We're going to follow up on what advertisers think Silverlight can do for them. But it's hard to believe it's going to be widely adopted until it can deliver on its claims, promises and value propositions.

Update: A new version of the plug-in did install and work on my PowerBook. Playback of Microsoft's demo video was less than smooth, but at least a functional release is out.
It's still very hard to understand why utterly non-functional releases go public, though.

Posted by Rebecca Lieb at 3:44 PM | Permalink | Comments (0)

April 19, 2007

U Penn Goes Live

Microsoft found a way to boost its user base of Live by 13,000 users, with potential to expand to 20,000 over time. The University of Pennsylvania's SAS and Wharton students will get a customized version of the operating system dubbed Penn Live. Live on campus will host e-mail accounts including mobile and offline access. Students will get two gigabytes of storage space for all the music they're buying for their Zune players or possibly some really long research reports, calendaring, contact management, Windows Live Messenger, file sharing, Windows Live Spaces, and P2P networking to synchronize files between multiple devices and other students. Of course just because Microsoft and the university created customized features, it's up to the students how they'll live with Live.

Posted by Enid Burns at 5:03 PM | Permalink | Comments (0)

April 16, 2007

Guess Who's Saying "Antitrust" Now?

Microsoft just issued a statement regarding the antitrust allegations Redmond has lodged against Google in the wake of the latter's acquisition of DoubleClick.

Microsoft SVP and General Counsel Brad Smith says in the release:

“This proposed acquisition raises serious competition and privacy concerns in that it gives the Google DoubleClick combination unprecedented control in the delivery of online advertising, and access to a huge amount of consumer information by tracking what customers do online. We think this merger deserves close scrutiny from regulatory authorities to ensure a competitive online advertising market.”

Update: An organization called NetCompetition.org just came out with a paper criticizing what it calls Google's "imperial ambitions." Entitled "How Google-DoubleClick is Exploiting Antitrust Law's Weak Underbelly to Dominate Internet Advertising" (PDF download), the paper accuses Google of trying to "get rid of potential competitors in a clever manner that will not likely be scrutinized by the Government."

Only this organization sounds even creepier than its accusations against Google. It bills itself as an "e-forum promoting competitive Internet choices for consumers." Its members, however, are comprised largely of a who's who list of the telco and cable giants opposed to net neutrality: Verizon, Comcast, and the like.

Posted by Rebecca Lieb at 2:38 PM | Permalink | Comments (0)

GoogleClick Implications: Big Ad Network Consolidation Around the Corner?

The fur is flying on blogs and news sites about the implications of GoogleClick, DoubleGoo or whatever you want to call it. Here are a few of the big picture questions I'm trying to sort out and get answered:

Will the move trigger a consolidation spree in the ad network space? Microsoft lost a big opportunity when it lost DoubleClick. Buying it would've meant overnight legitimacy in the eyes of the marketing community, myriad established relationships with advertisers and publishers and a budding ad exchange -- in short, the chance to instantly grow an ad network, at Jack-and-the-beanstalk speed, on the scale of Advertising.com, AdSense and Yahoo! Publisher Network. Instead, the ad community woke up this morning with even greater doubts about Redmond's dedication to online advertising in general.

What would make up for it? How about a series of acquisitions of the biggest independent ad networks? If Microsoft bought AdBrite, Tribal Fusion, Specific Media and a few others, it could gain a much-needed boost not only in its saleable inventory but also its credibility. Not only that, but media buyers who feel inundated by ad network options would be grateful.

Everyone's expecting the company, and perhaps AOL and Yahoo as well, to go after the remaining titans of ad management and media sales -- primarily ValueClick, 24/7 Real Media or aQuantive. But there's a ton of traffic passing through the slightly smaller guys' networks. They could be good, and more affordable, acquisition targets.

Yes, the dashboard has arrived. Now the backlash? This is obviously a big moment for the convergence of search and display, which have always been locked at the elbows in terms of their impact on conversions (though their synergy has only lately been proven). But will GoogleClick mean a big step forward for integrated online/offline media management as well? DoubleClick's very recently embraced ad management on digital signage, and Google's broadcast and print initiatives are no secret. How long before marketers can use the same interface to manage ads and read reports on their campaigns in every channel?

On the flip side, how long before marketers and media companies start to feel uncomfortable to have so much of their buy concentrated with one player?

Will Web sites bail on Google? Google, having already conquered search, wants now to be the largest ad network in the world. It's clear that all of DoubleClick's publisher customers are about to be offered the chance to sell ads through AdSense using the DART interface.

The actions of CBS, Viacom, News Corp and NBC and two separate newspaper consortiums have shown the big media ecosystem is profoundly nervous about Google's covetous angling for their online inventory, and is so far showing itself unwilling to play along. But those companies are all relative newcomers to the online media business. What of the pure play online guys? Are they willing to let Google represent new, unprecedented amounts of their inventory? My gut tells me they'll do it if it monetizes better, but I expect some are going to start casting around for a new management partner.

Posted by Zachary Rodgers at 10:28 AM | Permalink | Comments (0)

March 6, 2007

NewsFlash: Google Reckless on Copyright

Perhaps smelling blood in the wake of recent setbacks rival Google has suffered regarding its infringing use of video and news headlines on YouTube and in Google News Belgium, Microsoft attorney Thomas Rubin is set to go on the attack today at the Association of American Publishers' annual meeting in New York. During a keynote address, Rubin will accuse Google, which hosted its own flashy event for the book publishing industry just last month, of not playing by rules when it comes to trademarks and intellectual ownership.

Well duh. But it's interesting to note how he goes into the advertising implications of Google's track record of disregard for copyright laws.

The speech, which can be read verbatim here, accuses Google of preparing to run ads against book content it doesn't own -- despite the fact that Google has stated it won't do any such thing.

While Google says that it doesn’t currently intend to place ads next to book search results, Google’s broader business model is straightforward -- attract as many users as possible to its site by providing what it considers to be “free” content, then monetize that content by selling ads. I think Pat Schroeder put it best when she said Google has “a hell of a business model – they’re going to take everything you create, for free, and sell advertising around it.

Rubin will urge any publishers persuaded by Google's promise to keep digital copies secure and only display snippets of copy for discovery and promotional purposes to gaze on the copyright landscape over at YouTube. And he'll call out Google's reported practice of assisting advertisers in building keyword packages for pirated music, movies and software. That story was reported last month by The Wall Street Journal.

Posted by Zachary Rodgers at 12:05 PM | Permalink | Comments (0)

February 23, 2007

PS3: How to Kill Your Brand

Video game enthusiasts can be a fairly loyal and at times a very snarky bunch, so I wasn't too surprised when a few game developer friends of mine tipped me off to this video floating around the Internet about Sony's PS3 sales woes verses the Microsoft Xbox 360.

But as the song repeats its chorus of "How You Killed Your Brand" intermixed with samples of Phil Harrison, the president of Sony Computer Entertainment Worldwide Studios, supposedly hemming and hawing over answers to questions, and even several shots of PS3 declining sales charts, I was hard pressed not to chuckle at things as well.

A brief search on my part failed to uncover where the video came from, aside from the fact that it was recorded by someone named Doc Adams, but it's hard not to smell some of Microsoft's hand in things. If viral marketing is all the rage, was viral mudslinging not too far behind? Or perhaps some viral dancing on graves?

Still, it's a catchy tune!

Posted by MatthewNelson at 11:04 PM | Permalink | Comments (0)

January 19, 2007

Microsoft is Watching You (and Then Changing its Billboard)

Microsoft had some ClickZ editors feeling that strange shiver of dread run up and down their spines when news filtered back from the Redmond campus and its Third Annual Demo Fest. The event featured technology in the works by Microsoft's adCenter Labs in Washington and Beijing. And amidst the keyword search APIs and the social video sharing programs, Microsoft also rolled out a 42" plasma screen attached to a Web camera.

Get ready for the Big Brother and Minority Report segues, because Microsoft's project called "large display feedback" is being developed as vision-based technology that creates interactive public displays. The displays can determine the size of the audience watching them, as well as the gender and other demographics, and then tweak their display to present a stylized message. The system also tracks gestures to allow interaction with the display directly, and uses 129 facial recognition points to determine gender (although word is it's still occasionally identifying some male Microsoft engineers as female, but that the bugs are being worked out).

Now, facial recognition systems being used for demographics or security purposes have been around for years to track everything from Nielsen television viewers to possible terrorists in government installations, but somehow the idea of our billboards watching us instead of the other way around just seems a bit… unsettling.

Posted by MatthewNelson at 4:57 PM | Permalink | Comments (0)

Vertical Search Auctions on Portals Coming Soon?

Will keyword bidding on Yahoo and MSN -- the search players with portals -- soon be carved into optional, more expensive vertical niches? It appears so.

At a lunch Yahoo threw this week to announce its new personal finance section , I asked a number of Yahoo executives if they'd considered a marketplace in which, say, a financial advertiser could bid for two tiers of keywords: one on Yahoo Search, and another higher bid for contextual search ads appearing only on search results within the personal finance section.

"It's certainly something we looked at," said Tanya Singer, director of product development, who spearheaded the project.

That amounts almost to a confession. With the recent introduction of Panama on the Yahoo side, and upgrades scheduled for MSN's auctionplace interface, the content portals would have to be nuts not to consider enabling more vertical SEM buys.

Google's not a portal, but it could certainly play along with buys aimed at specific sections such as Book Search or local, though that's a mushier landscape given the precision to which a local buy can already be targeted.

The end effect would be more targeted advertising, to be sure. But also more complicated search advertising, which only the more sophisticated clients are ready for. SEMs would also have to rush to tweak their proprietary bid management and metrics applications.

Still, it seems the move is inevitable. The only question is, when? Yahoo's promised to get back to me on this.

I'll keep you posted.

Posted by Rebecca Lieb at 9:16 AM | Permalink | Comments (0)

January 9, 2007

adCenter Down for Maintenance

Microsoft's ad management interface has been down for the past hour. Via the adCenter blog:

We are currently conducting maintenance on the adCenter user interface. The user interface will be unavailable for the next couple hours. Rest assured, your campaigns and keywords will run as usual. However, you will be unable to make changes using the user interface. Advertisers who access the system using the API will experience no issue managing campaigns. We are sorry for the inconvenience and appreciate your patience while maintenance is being performed.

Thanks,
Carolyn

Posted by Zachary Rodgers at 2:48 PM | Permalink | Comments (0)

See More Posts From:

Today | This Week | This Month

• Send us feedback
|
• FAQ
|
• Technical questions or bug reports?
|
• Newsletter problems?
|
• Site Map
|
• ClickZ RSS feeds

• Incisive Interactive Marketing LLC. 2009 All rights reserved.
|
• Legal Notices, Licensing, Reprints & Permissions
|
• Privacy Policy