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Obama’s Online Ad Spend Favors Google, Top Source of Donations

Kate Kaye at Clickz has done some in-depth analysis of the online ad spending of Democrat Presidential Candidate Barack Obama. The Illinois Senator has spent $3.47 million this year in online advertising.

Of that, $2.8 million went to Google while Yahoo received $180,000. Smaller amounts also went to Facebook, CNN.com, Gothamist, and Politico.

Google, of course, dominates the online advertising market, so it’s a smart play by anyone to spend with them. But Google just happens to be number 13 on OpenSecrets.org list of top donors. The list compiles monies donated by corporate political action committees and individuals (who must report who they work for when contributing).

Related Reading:
Presidential Candidates Need Some Help with their Reputations
Clinton, McCain, Obama: Drilling Down on Local in Campaign ‘08

T-minus 1 Day: Last Minute Rhetoric from Microsoft and Yahoo

On yesterday’s earnings call, Chris Liddell, Senior VP and CFO, affirmed recent statements by Steve Ballmer to focus on the online advertising market. He said that the strategy was based on three pillars:

  • To drive innovation and search
  • To increase value to advertisers and publishers
  • To grow user engagement across MSN and Windows Live properties

Liddell said that Yahoo would accelerate that strategy. But later, he made this statement:

We’ve yet to see tangible evidence that our bid substantially undervalues the company. In fact we see the opposite.

Yahoo continues to lose search share and profitability continues to decline year-on-year. The results that they announced on Tuesday were in line with the guidance that they gave on their last earnings call on January 29, after which their stock price closes at $19.05 and Wall Street analysts’ consensus on value was significantly decreased.

Just how is Microsoft expected to accomplish their three pillars if Yahoo is as awful as they say?

Perhaps Liddell and Ballmer are beginning to ponder that exact question. Earlier this week, Ballmer suggested that Microsoft would go forward without a merger. During yesterday’s call, Liddell suggested that an alternative to Yahoo’s “no” is to withdraw the proposal.

Meanwhile, Yahoo remained consistent in what they’ve been saying all along – that they’re worth more than Microsoft’s original offer. Speaking on Yahoo’s earnings call on Tuesday, CEO Jerry Yang reinforced his confidence in the overall value of his company:

Yahoo! has a unique and valuable combination of assets that include our global brand, our large worldwide audience, our leadership in online advertising, our strategic positions in Asia, our mobile and emerging market franchises, and our scales, tools, and technology.

Yang stated that Yahoo’s Q1 revenues were particularly remarkable in the light of uncertainty caused by Microsoft’s unsolicited offer. He also said that Yahoo remains open to its options, including a deal with Microsoft.

Then Yang zeroed in on what he felt was his most important statement on the matter:

If you take only one thing away from this brief discussion, I hope it will be that our board and management are committed to choosing a path to maximize stockholder value and will not enter into any transaction that does not recognize the full value of this company.

Tomorrow, the ultimatum comes. Decisions will be made and actions will be taken. But the rhetoric still has just begun.

We May Not Need Standards But FTC, FCC Want To Gives Us Regulations

While the standards debate rages on, our industry is fast coming under the influence of government regulations. This week has seen discussions about behavioral marketing at the FTC and the FCC weighing in on ISPs filtering sites.

The behavioral regulations being looked at by the FTC had Google, Yahoo and Microsoft commenting from different angles.

Google wanting to make sure their method of selecting ads was not rolled into the mix stated “our AdWords program allows us to provide ads on Google.com in response to search queries… . We believe this type of advertising should not be considered behavioral advertising, even if such analysis takes into consideration previous search queries.” (from Alan Davidson, Senior Policy Counsel and Head of U.S. Policy, Google, Inc.).

Yahoo’s VP Global Public Policy David Hantman stated: “The information they will receive when they click through for more information will include an explanation of how customization works, how they can participate in the NAI opt-out, and a link to our privacy policy where they can find more comprehensive information”

While Microsoft provided a list of ways to possibly address the issue:
Sensitive Personally Identifiable Information Advertising - Opt-in Consent;
Personally Identifiable Information Advertising - Propsective Use: Opt-out Choice;
Retroactive Use: Opt-in Consent; Behavioral Advertising — Opt-out Choice;
Multi-Site Advertising - Pass-through Notice;
Online Advertising - Prominent Notice, Security, Data Retention.

New SEMPO Chairperson Dana Todd Has Big Dreams for Organization

Last month, SEMPO selected the officers for their 2008 Board of Directors, and Chairperson Dana Todd is sharing her vision for the organization.

“Because the internet marketing industry changes so rapidly, it’s becoming more important to hiring managers to know that the people they’re bringing on board have more than a passing knowledge of the tactical aspects of Search Marketing. It’s very learnable, but you can’t take shortcuts in learning a complex science such as Search,” said Chairperson Dana Todd.
Specifically, Todd wants to help search marketing practices be applied to other sectors such as online advertising, information architecture, and PR.

The Board of Directors will also focus on finding new ways to support the three primary legs of SEMPO’s mission , which are education, research and global expansion. New initiatives include defining standards and best practices, building local presences, and expanding the role of the SEMPO Institute to bring a higher baseline of education to search marketers.

Todd co-founded SiteLab Interactive in La Jolla, California. The company has been integral in the launch of Newsforce, which provides new media distribution tools for Public Relations professionals.

Urban Mapping Unveils Geotargeting and Local Search Platform

7% of searches are local, including a zip code, city or neighborhood term. With over 10.8 billion searches conducted by Americans in the month of March alone, 7% is a lot of searches.

Now Urban Mapping is making it easier for search marketers to improve the effectiveness of their online advertising and paid search campaigns for local search. Today, the neighborhood data provider announced the launch of its Geomods platform, designed to “deliver more geographically-relevant results for users.”

Here’s what you can expect from the new platform:

• Platform utilizes standard web protocols and serves geographic terms relevant to a specified area.
• Provides a custom service area based on a variety of demographic, spatial and business factors (via a separate module)
• Leverages the installed user base of its neighborhoods boundary database, providing many of the same geographic keywords that power search portals, Internet yellow pages and mapping platforms.

“This geotargeting platform is a radical departure from traditional IP-based geotargeting,” said Ian White, Urban Mapping CEO. “It has been proven again and again that traditional geotargeting does not provide a high degree of confidence for local search, where granularity is of paramount importance—blocks, not ZIP codes or metropolitan areas matter.”

Urban Mapping’s GeoMods services includes US, Canadian and European coverage. The company currently counts SuperPages.com, YellowPages.com, MapQuest, Microsoft’s Live Search, Ask.com as customers.

Related Reading:
The Benefits of Geotargeting
Marchex Shows How to Cash In on Local Search
Mobile Local Search: A Perfect Storm
Social Media Meets Local Search

Is Search Recession-Proof?

The online advertising industry hasn’t been immune to recession fears, and online advertising will probably suffer if there is a recession. But search will likely be the last place from which marketers pull their ad dollars. In today’s SearchDay, “Is Search Recession-Proof?” Reprise Media’s Joshua Stylman explains why: paid search is accountable, efficient, and built on a cost-controlled model, making it the most recession-proof medium in the ad world.

eMarketer Releases Mobile and Online Advertising Projections

If you love advertising projections, then have we got some numbers for you. eMarketer has released new projections for both mobile advertising and online advertising.

This year, US mobile ad spending is expected to reach $1.7 billion, up from $878 million last year. By 2012, it will reach $6.5 billion in the US, but it’s the Asia-Pacific market that’s expected to dominate the mobile landscape by then, with the middle class in China and India making up the bulk of that demographic. Worldwide, mobile ad spending is projected to reach $19 billion by 2012.

Meanwhile, online spending is expected to continue growing, the the rate at which the growth will occur will decline, at least for a few years.

In 2008, eMarketer projects online ad spend to reach $25.9 billion, a 23% increase over 2007 spending. It’s slightly lower than their previous 2008 projection set at $27.5 billion, released in October 2007.

But in 2009, expect to see the growth rate drop to 15.8%, followed by 16.7% in 2010 and 17.1% in 2011. Things start to look robust again in 2012, when a recovered economy is projected to boost the online ad spend up by 24.4% and reaching a whopping $51 billion.

Related Reading:
Report: Online Ad Growth Slowing
The Offline Benefits of Online Advertising
Google + DoubleClick = 69% of Online Advertising Market
How Search Will Save Online Advertising… Again!

Google Responds to FTC’s Self-Regulatory Principles

When concerns over data collection and behavioral advertising arise, it seems that the glass half empty people are the loudest. But in a recent response to the FTC’s Self-Regulatory Principles, Google has pointed out the impact that online advertising has had on the economy.

Google highlighted that in 2007, they paid out $4.5 billion to publishers utilizing the Adsense network. These monies either supplements or provides full-time income to many site owners including bloggers. They pointed out that many people have opportunities that just weren’t available 10 years ago.

Additionally, the revenue that Google generates enables them to provide services for free to the general public.

Google wrote that these innovations only occur within a self-regulatory framework:

“To be effective and credible, however, self-regulation must have as its foundation agreed-upon fair information practices and must be informed by ongoing dialog with and input from consumer advocates, the Commission, and other stakeholders. The FTC staff’s draft self-regulatory principles for online behavioral advertising provides an excellent foundation for developing the most effective consumer protection, while maintaining an online environment in which innovation and competition can thrive.”

But Google is careful to distinguish its advertising from being labeled “behavioral advertising.”

“As currently drafted, the proposed principles would apply to contextual advertising, which we define as advertising that is provided in response to the current activities of a user. For example, our AdWords program allows us to provide ads on Google.com in response to search queries entered by our users. In addition, our AdSense product allows us to provide ads to visitors to the web sites of third-party publisher partners based on the content of pages visited. In essence, then, our contextual advertising allows for the delivery of advertisements based on search queries or our analysis of the content of a web page being viewed. We believe that this type of advertising should not be considered behavioral advertising, even if such analysis takes into consideration previous search queries.”

These comments also come in the wake of news from Europe of a policy adopted by the Article 29 Data Protection Working Party, which would reduce data collection by search engines to just 6 months. Such a regulation could greatly impact the ability of search engines to provide relevant ads, which could have a ripple effect on the greater revenue streams generated by their ad networks.

Search Headlines & Links: April 7, 2008

Want a snapshot of the day’s search marketing news? Here we’ve collected today’s top news stories posted to the Search Engine Watch Blog, along with search-related headlines from around the Web:


From the SEW Blog:

European Group Wants to Cut Search Engine Data Storage

Almost a month after the EU approved Google’s DoubleClick acquisition, officials from 27 EU nations have unanimously adopted a proposal that could force search engines to reduce the amount of time they store personal information. The Article 29 Data Protection Working Party met for 2 days in Brussels last week and agreed that six months should be the maximum amount of time data is stored.

Last year Google cut its data storage to 18 months to comply with EU rules. Microsoft and Yahoo followed suit by reducing their storage to 18 and 13 months respectively.

Experts think this could have implications for online advertising. The booming industry is expected to see tremendous growth in the coming years, but relies heavily on personal data to target ads.

In the U.S., efforts have been made by various state officials to limit the way search engines collect information but to largely no avail. Most recently, state officials in New York and Connecticut introduced bills to thwart data collection.