Google Exits From Advertising Deal with Yahoo
Google Inc walked away from a proposed advertising partnership with Yahoo in the wake continuing pressure from government regulators as well as clients.
Google said in its corporate blog that it was pulling out of the advertising partnership deal with Yahoo as even after four months of anti-trust review, regulators and some advertisers continued to express concerns about the deal. Under the terms of the deal Yahoo would hand over a share of its advertising business to Google in exchange for a share of any resulting revenue. Google chief counsel, David Drummond said in a statement that pushing ahead with the deal would have meant incurring long expensive legal battles as well as soured relationship with clients.
The break up of the proposed advertising deal with Google has left Yahoo in a critical position as it struggles to hold on to its share of the growing market for search advertising on the Internet. The fruition of the partnership deal would have landed Yahoo with hundreds of millions in advertising revenue deal. Yahoo officials responded to Google’s exit from negotiations with disappointment and maintained that the partnership would have been lucrative for all parties.
However by Wednesday afternoon share prices of Yahoo rose by more than 4 percent on hopes that the company would now restart merger negotiations with former suitor Microsoft Corp.
Google Settles Lawsuit with Publishers for $125 million
Google has agreed to pay $125 million to settle lawsuits filed by authors and publishers which charged the web search group of copyright violations.
In 2005 group of publishers and writers had challenged Google’s book scanning project that digitised and offered excerpts of books without permission from copyright holders. the suit against Google was brought on by the Authors Guild and members of the American Association of Publishers which includes McGraw Hill, CBS-owned Simon & Custer, Pearson Education, Penguin as well as John Wiley & Sons.
The agreement is the latest development in the dispute between Google and the publishing industry which has become increasingly wary of the media company’s shadow over their business. However the settlement is expected to put in place a legal and financial framework which will guide the digital distribution of millions of books over the internet in United States and later perhaps in other parts of the world.
The settlement is still subject to approval of the US District Court for the Southern District of New York. Once approved, readers will be able to look for and read extracts from millions of out-of-print as well as copyrighted books over the web besides having the option of buying access to the books.
YouTube to Feature Full-Length TV Shows
In its latest attempt to extract revenues, Google has decided to run favorite TV shows on YouTube with advertisements liberally strewn through the full-length episodes.
A YouTube blog announced Monday that it was launching full-length screenings of popular TV shows. The shows will be available on regular view as well as on YouTube’s new “theatre view” which makes use of gimmicks like fake curtains to frame the online video show as well as “lights off” feature to provide a realistic feel to the online experience.
Besides full length TV shows, Google is also experimenting with a new advertising method which will play fifteen-second ads at the beginning of the video. Under this format, commercials will also roll in during video playback as well as at the end of the show.
For the time being, the full length screenings of TV shows on YouTube are only available for viewers within the United States and non-US viewers trying to access the videos are informed that the service is not available in their country.
Google is the leader in online search and advertising markets while YouTube has amassed an incredible fan following over the Internet for its variety of online videos which range from breaking news and entertainment to the incredible and quirky.
Google Eyes Revenue from Online Games
Google Inc has marked its entry into online gaming by launching technology that will insert advertisements into online video games and thus make money from the lucrative online gaming industry.
On Wednesday, Google announced the launch of a software called AdSense for Games which allows image, video or text advertisements to be placed at the start, end or at a change of level in an online game. At present, the software is in beta testing and will be an extension of its AdSense program which matches ads to the content of websites. The advertisers will be charged on a cost-per-impression or cost-per-click basis and the revenue will be shared between Google and the game developers or publishers.
Among the game makers that Google is working with are Konami Corp as well as Demand Media which is run by former MySpace chairman Rosen Blatt. Google is also in talks with advertisers like Sprint Nextel Corp and Sony Pictures from Sony Corp.
Google Inc is the leader of online search and advertising market and is eager to get a share of the booming online gaming sector. According to data provided by comScore, more than a quarter of Internet users or roughly 200 million people play games online with their numbers increasing by 17% every year.
The iTunes app store is a new industry
The iTunes app store was one of its kind on the internet when Apple opened it in July. But in the next 6 months the idea is set to be adopted by several companies. Google has announced that it has plans to expand into the market, while T-mobile, Microsoft and Symbian are expected to follow. Developers will be able to sell downloadable applications that will make mobile phones more useful and entertaining.
The appeal of an online app store is evident. 60 million apps have been downloaded from the iTunes app store. The store had an average of $1 million in sales everyday for the first month.
The app store is increasingly worrying for Microsoft in particular since the iPhone buzz is starting to dig into Microsoft market share in the Mobile Phone operating system market. Microsoft is expected to launch the Skymarket where it will sell apps for its operating system, Windows Mobile 7, which is expected to be released in 2009. Google will be doing so a little earlier as their Mobile operating system Andriod is anticipated to arrive later on this year, for which it will open the Android Marketplace. Which I think will be a significant blow to Apple since the andriod will be capable of operating on a range devices and therefore its app store will have a much larger market.
Faizan Zakir Cyberzest.com
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.
Chrome is not 100% Pure metal
Google’s Chrome has an imploring clean look and renders websites faster than any other browser. Google is giving all this to users free of charge, but there are strings attached. The browser will give Google access to valuable user data.
The Chrome comes with (so-called) Omnibox pre-installed, where a user types in a search query or a website URL. As long as Google is your default search engine and the suggest feature is left on, Google will capture 2% of the data entered into the Omnibox and keep it for its own records. If Google’s Chrome attains its much anticipated success, the internet giant will have an exceedingly valuable stream of new user data, not bounded to what users search but what websites they visit outside of the Google’s web space.
Google has made it clear that such “tracking Capabilities” can be switched off by the user. If the user switches on the “Incognito” privacy function, then Google will have no trace.
Forrester Research analyst Sheri McLeish believes that it would be “counter-intuitive for Google not to use Chrome to gain more user data”. She went on to discredit the privacy function “it doesn’t mean they don’t collect that information, or won’t.”.
The potential of tapping user data for targeted advertising is huge.
We all know that Google’s Chrome is not created solely as new stream of user data, Sheri agrees too. Google has Vowed to establish Chrome as the “central access point” of all of its internet services.
Chrome Google gets metal.
Tech fans have flocked to Google Chrome (including me), Individuals and small businesses are playing along.
The real Question is will enterprises fancy Google’s chrome after being pig-headedly loyal to Microsoft’s Internet Explorer, in spite of Mozilla’s Firefox record breaking success. Chrome’s clean look and fast rending capabilities will appeal to developers, but will they put in the time and investment to rewrite their programs and test their compatibility with Chrome.
Greg Raiz, who is a developer and owns Raizlabs, a Mass. custom software maker, says “The only thing that would make me want to test on Chrome is if the client wants it or if Chrome gets significant market share, Honestly, it’s a business thing.” IT managers and CIO’s reckon browser performance as only one among many factors to take into consideration before initiating a new venture.
Virgin Entertainment Group Inc. CIO, Robert Fork said “I’d have to make sure Chrome worked well with all of our other apps. What is the business value in that?” “I give Google all the credit in the world for innovative solutions … but to Microsoft’s credit, they’ve got a lot more of an enterprise attitude,”. Robert’s attitude is just what Microsoft wants, he went on to say “Google Chrome is definitely faster than IE 8 Beta 2. But there’d have to be astronomical performance improvements in Chrome for us to switch,”.
Personally I prefer Google’s Chrome over Internet Explorer, with Google’s innovation, a powerful search engine, tools like Youtube and Google Earth, and last and but most Google’s big wallet i can say with confidence that the Chrome will be something to take seriously.
Faizan Zakir, Cyberzest.com
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