Google Inc. and Yahoo! Inc. called off their joint advertising agreement just three hours before the Department of Justice planned to file antitrust charges to block the pact, according to the lawyer who would have been lead counsel for the government.
That’s the last line of a Times piece over the weekend on the increasing size of our digital footprints. Hmmm. But it is the basis of the American constitution. Read the Times piece, which, if you’ve read The Search and watched the “Web Meets World” meme (that was the theme for Web 2 this year), will not be new ground, but is a good overview of the issue right now.
From a Weisel report emailed to me just now:
On Monday (11/3) after the close, The Wall Street Journal reported that Google and Yahoo have submitted to the Department of Justice a revised version of their proposed search agreement. While we see little legal reasoning behind blocking the deal, we believe the DOJ is basically saying that Yahoo can’t be trusted to do the right thing for its business over the long term.
Shortened Duration: The reported revised plan shortens the partnership from 10 years to 2 years, forcing Yahoo to avoid lowering its search monetization capability if the company can’t rely on Google for a decade.
Cap on Outsourced Revenue: The revised deal would also place caps on the revenue that Yahoo can generate from the partnership to 25% of Yahoo’s search revenues (or around $1bn annually based on our 2008 estimates). Given Yahoo had originally identified search revenues of $800mn that would be addressable for Google suggests again that the DOJ would want to put fail safe measures in place to limit Yahoo from getting too aggressive and outsource beyond the tail keywords which it had previously highlighted.
Here is a Reuters piece:
Yahoo Inc and Google Inc have drastically scaled back the scope of their search advertising deal, a person close to the discussions said on Monday, in a last-ditch effort to win U.S. antitrust approval.
The move comes after Google appeared to be on the verge of walking away from the partnership, which was announced in June to foil Microsoft Corp’s takeover attempt of Yahoo. The deal has since drawn scrutiny from U.S. regulators amid a growing chorus of criticism from advertisers.
The two Internet companies have submitted a reworked proposal to the U.S. Department of Justice that shortens their partnership to just two years from 10 years, the source said.
Jerry and I sit down to talk on stage Weds.
Check this out from the AdSense blog:
When we notice a spike in readers who are interested in a specific topic, we like to address it as soon as we can. There’s been some interest in filtering ads from publisher pages, so here’s a quick refresher on the filtering tools we offer:
Competitive Ad Filter
You can restrict contextually-targeted and placement-targeted ads from appearing on your pages by adding the URL of each ad to your Competitive Ad Filter. After logging in to your account, click the AdSense Setup tab and visit the ‘Competitive Ad Filter’ page. You can also find full instructions and tips for entering in specific URLs in our Help Center. To determine the URL of an ad, try the AdSense Preview Tool or follow these steps. Please keep in mind that it may take several hours for the filter to take effect.
Look, I run a network of high end publishers, and many of them use Google and other remnant networks to backfill ad inventory. So I see this too. And I can give you exactly one reason why this came up. For those of you too lazy to click the link, Google came out against Proposition 8 a while back, and I applaud them for doing so. And the spike they are referring to? Most likely (I have not confirmed this) it’s because the Yes on Prop 8 folks are aggressively spending on Google right now, and a ton of publishers are seeing Yes on 8 ads on their site, and they don’t want to allow those ads.
For the record, I am openly against this proposition. If that means another group of readers (yeah, I am for Obama too) stop reading me because they think my views don’t fit theirs, well, sorry to see you go, folks. Most likely, most of you left me already given my views on the presidential electon. Somehow, I sense, in a decade or two, this will all seem like a pretty stupid debate.
Just in time for my interview with Jerry Yang next week at Web2, this report from the Journal (via Reuters):
Google Inc (GOOG.O) and Yahoo Inc (YHOO.O) could announce a decision to walk away from their search deal by the middle of next week, The Wall Street Journal reported on Thursday, citing people familiar with the matter.
The two Internet companies have so far failed to reach an agreement with the U.S. Department of Justice on implementing their search advertising partnership.
I spent a very engaging hour or so with Jerry earlier this week and we discussed this deal, among a lot of other things. I wonder if we’ll get confirmation by the time he and I have our chat Weds. afternoon.
I’m watching this unfold, OpenID, Facebook Connect, Y!OS, Microsoft support, Google support…it’s supposedly a big group hug, but it feels like a war, folks. And it’s not pretty. Note this:
A couple of hours ago, the Google Security Team posted an article claiming that Google’s made the switch to OpenID, joining Yahoo! and Microsoft in the ranks OpenID providers.
But it looks like someone may have been a bit to hasty to pull that switch (perhaps itching to get some of the limelight Microsoft has been receiving for adding OpenID to all Live ID accounts just the day before yesterday)… because whatever it is that Google has released support for, it sure as hell isn’t OpenID, as they even so kindly point out in their OpenID developer documentation
I hate to say it but watch this space.
…which should not be a surprise to regular readers of this site. I am on a list of “CEOs for Obama” and have been donating to Obama’s campaign. Why am I posting this now? To a media/tech site? Well, I was inspired by Tim.
Faced with these problems, we need a president who can harness the best and brightest our country has to offer, a president who is conversant with, and comfortable with, the power of technology to assist in solving these problems, a president who is good at listening, studying, and devising solutions based on the best insight available, rather than on narrow ideology. We need a president who can forge consensus, not just among the partisans in our own fractured democracy but around the world. We need a president who can inspire our citizens and our global partners to forgo narrow self interest and embrace the possibilities that we can achieve if we work together to build a better future.
This war must end. It is time we recognize that we can’t kill this creativity. We can only criminalize it. We can’t stop our kids from using these tools to create, or make them passive. We can only drive it underground, or make them “pirates.” And the question we as a society must focus on is whether this is any good. Our kids live in an age of prohibition, where more and more of what seems to them to be ordinary behavior is against the law. They recognize it as against the law. They see themselves as “criminals.” They begin to get used to the idea.
That recognition is corrosive. It is corrupting of the very idea of the rule of law. And when we reckon the cost of this corruption, any losses of the content industry pale in comparison.
This will be interesting to watch:
To mark our 10th birthday and celebrate the spirit of our users and the web, we’re launching Project 10^100 (that’s “ten to the hundredth”) a call for ideas that could help as many people as possible, and a program to bring the best of those ideas to life. CNN will be covering this project, including profiles of ideas and the people who submit them from around the world. For a deeper look, follow along at Impact Your World.
The site is here. I wish we could see the ideas streaming by and vote on them. It’s too opaque right now. But this is VERY Web Meets World, which is the theme of Web 2 this year, and Larry Brilliant, the head of Google.org, will be our first speaker. Good timing.
Fortune gave this piece a Diggbait title:
Everyone Hates Comscore (I am quoted)
But the truth is more like this: Everyone Wishes They Shared the Same Reality.
The promise of online marketing is not yet delivered upon. Meanwhile, we have an arbiter that often seems disconnected from reality, at least from the point of view of website publishers.
There’s alot of work to be done to bridge the gap, and it’s not all Comscore’s fault. I am looking forward to my interview with Comscore founder Gian Fulgoni at the upcoming CM Summit in October, where we can really suss some of these issues.
I will also be interviewing Twitter (and Blogger) co-founder Evan Williams, as well as Laura Desmond, the global CEO of Starcom (one of the largest media buyers in the world) and David Rosenblatt, who runs DoubleClick.