Trouble insight for Google-Yahoo Deal!
The Association of National Advertisers (ANA) has sent a letter to Head of the antitrust division of the US Department of Justice, opposing the controversial Google-Yahoo search advertising deal.
Yahoo said that it didn’t have relevant ads for some keywords, and the result pages would not have any ads. As a result the company decided to allow Google to use some of the valuable virtual real-estate, in a revenue sharing model. At the same time Yahoo could also choose to place Google ads along-side its own. To put it simply all they are trying to say is that Google will be placing ads on Yahoo search result pages.
The ANA consists of a group of 400 powerful companies that spend a grand total of $100 Billion in advertising. In an official statement the association stated
“The letter, authorized by the ANA board, notes that a Google-Yahoo partnership will control 90 percent of search advertising inventory and states ANA’s concerns that the partnership will likely diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search and advertising.”
The deal will give Yahoo an extra $800 million revenue in the first year, as a result boosting its cash flow to $450 million from $200 million. It was initially announced in June and the two companies said they will implement it after 100 days to give anti-trust regulators to review the deal.
Time will judge the fate of the deal and the fate of Yahoo, which needs the deal most.
Mobile Advertising – Current and Future Trends
Which one of the following sentences makes the most sense?
1. Hollywood is going to shutdown in 2008
2. The 3G Network is obsolete
3. Mobile Advertising is an emerging potential revenue market
I would say #3, if anybody disagrees with me please write me with your comments, but for now, I’m going to take a stand on #3
Mobile Advertising Market
Mobile phones have become a part of every human’s daily life. Recently, technology giants such as Microsoft and Google have launched into the emerging Mobile Advertising market to pursue a piece of the mobile ad revenue pie. From a subscribers viewpoint the most popular and simultaneously annoying method of advertising for subscribers is SMS advertising. Advertisers run ad campaigns with varying ad types; text, fullscreen or banner ads to target different age demographics, gender and location statistics obtained from user profile information. This targeting method is accomplished through various mediums such as WAP, SMS, MMS and also through mobile email client applications such as Consilient Push.
WAP advertising is one of the break-out advertising mediums as many subscribers use their mobile phones for internet access due to competitive and very affordable data plans offered by their mobile carriers. The traffic generated on each carrier’s WAP portal is now much higher than any other medium which leads to a high revenue generating source.
WAP advertising Technology
The mobile advertising technology used to deliver ads to the subscriber has grown quite sophisticated, allowing advertisers to target specific users by numerous targeting parameters to deliver a much more focused advertising campaign. When the subscriber visits the carrier’s WAP portal page, the WAP gateway communicates with the ad server and obtains the ad image source URL and then sends this information to the mobile device for the device browser to make a request to fetch the image source of the ad. The advertisements are served with varying types of user actions for that particular ad. Click-to actions can include: Click To Call, Click To Email, Click To SMS, Click To Browse, Click To Download and Click To Chat. Also the ads will be served based on a priority ranking system. In addition, the advertiser’s budget capping for impressions and clicks will also be taken into account, set by the advertiser for each of their advertisements.
There are other ways of presenting the advertisements such as eCoupons, live streaming video etc. Recently, many mobile carriers have launched into this market relying on the ad revenue model to offer some of their services for free. This helps to build a huge subscriber base quickly and allows publishers to publish their campaigns and associated advertisement’s.
From a subscriber’s point of view, they enjoy the free services provided by the carrier, at the cost of receiving a few advertisements on their phone which is probably just a minor inconvenience to get the service for free. WAP advertising is even more preferable as this method of advertising doesn’t choke subscriber’s mobile message Inbox unlike SMS advertising.
In my next article, I’ll discuss the technology involved in the advertising concept followed by some of the more popular advertising solutions and their technology.
-Anu works in Canada and is an expert in developing advertising applications for mobiles. Besides that she loves cooking geek!
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