On The State of Google’s Advertising Business: Neal Mohan at Signal SF

If you’ve been reading Searchblog, you know I’ve been writing quite a bit about Google, privacy, and the advertising business. All of those topics are going to be coming together in my interview with Neal Mohan, VP Product at Google, on the Signal SF stage next month.

Neal oversees display and mobile advertising for Google, and works directly with the company’s entire advertising stack, a formidable lineup of products that include the Doubleclick ad server and exchange businesses, AdSense, the Invite Media demand side platform, the pending AdMeld supply side platform, AdMob, and much more. Given the tempests over Google’s integration of its privacy policies, the integration of Google+ into Google search, and Google’s circumvention of Apple’s Safari browser, it’s bound to be quite a conversation.

Register for Signal:SF here (we’re closing in on a sell out), and please leave any questions or comments you might have for Neal below. I’ll be listening and integrating your input. Also, below are a few more links for you to peruse on the topic of Google and its advertising business (as well as that of its main competitor now, Facebook).

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Facebook News (Livestream): The Brand Spaces Are Bigger, Bolder, More…Ad Like

Facebook is holding it’s first ever “fMC” today – that’s Facebook Marketing Conference, and it’s announcing widely expected new ad formats. From the release just sent to me:

Today, Facebook announced a new design for Pages, giving brands and businesses more ways to tell their story. The redesigned Pages are more personalized and complementary to the look and feel of individual profiles. Now, when you visit a Page, you can see your friends’ interactions with that Page as friend activity, making the experience more dynamic and relevant for Facebook users.

Highlights of other new features include:
· Pinned posts keep important stories at the top of a Page timeline for up to seven days.
· The new admin panel makes it easy for Page administrators to track their performance and to respond to private messages from people.
· Larger stories, milestones, and Page Timeline. The new Page design allows Page owners to tell richer stories through bigger photos and milestones that can include a date and other content.

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A Funny Thing Happened As I Was “Tracked”

I’m still in recovery mode after the wave of Apple-defenders inundated me with privacy-related comments over this past weekend, and I promise to continue the dialog – and admit where I may be wrong – once I feel I’ve properly grokked the story. The issue of privacy as it relates to the Intenet is rather a long piece of yarn, and I’m only a small part of the way toward unraveling this particular sweater. (And yes, I know there are plenty of privacy absolutists rolling their eyes at me right now, but if you don’t want to hear my views after some real reporting and thinking on the subject, just move along….). lf you want to peruse some of the recent stories on the subject I’ve been reading, you can start with the Signal post I just finished.

Meanwhile, I want to tell you a little story about advertising and tracking, which is at the heart of much of the current tempest.

While skiing last week at my home mountain of Mammoth (the only place in California with a decent snowpack), my family and I stayed at a Westin property. It’s a relatively new place, and pretty nice for Mammoth – which is more of  a “throw the kids in the station wagon and drive up” kind of resort. It’s not exactly Vail or Aspen – save for the skiing, which I dare say rivals any mountain in the US.

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Obama’s Framework for “Consumer Data Privacy” And My “Data Bill of Rights”

It sort of feels like “wayback week” for me here at Searchblog, as I get caught up on the week’s news after my vacation. Late last week the Obama administration announced “Consumer Data Privacy In A Networked World: A Framework for Protecting Privacy and Promoting Innovation in the Global Digital Economy.”

The document runs nearly 50 pages, but turns on a “Privacy Bill of Rights” – and when I read that phrase, it reminded me of a post I did four years ago: The Data Bill of Rights.

I thought I’d compare what I wrote with what the Obama administration is proposing.

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Larry Page’s “Tidal Wave Moment”?

Who remembers the moment, back in 1995, when Bill Gates wrote his famous Internet Tidal Wave Memo? In it he rallied his entire organization to the cause of the Internet, calling the new platform an existential threat/opportunity for Microsoft’s entire business. In the memo Gates wrote:

“I assign the Internet the highest level of importance. In this memo I want to make clear that our focus on the Internet is crucial to every part of our business. The Internet is the most important single development to come along since the IBM PC was introduced in 1981.”

The memo runs more than 5300 words and includes highly detailed product plans across all of Microsoft. In retrospect, it probably wasn’t a genius move to be so transparent – the memo became public during the US Dept. of Justice action against Microsoft in the late 1990s.

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It’s Not Whether Google’s Threatened. It’s Asking Ourselves: What Commons Do We Wish For?

If Facebook’s IPO filing does anything besides mint a lot of millionaires, it will be to shine a rather unsettling light on a fact most of us would rather not acknowledge: The web as we know it is rather like our polar ice caps: under severe, long-term attack by forces of our own creation.

And if we lose the web, well, we lose more than funny cat videos and occasionally brilliant blog posts. We lose a commons, an ecosystem, a “tangled bank” where serendipity, dirt, and iterative trial and error drive open innovation. Google’s been the focus of most of this analysis (hell, I called Facebook an “existential threat” to Google on Bloomberg yesterday), but I’d like to pull back for a second.

This post has been brewing in me for a while, but I was moved to start writing after reading this piece in Time:

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RSS Update: Not Dead, But On The Watch List

Since I posted my call to action last week, nearly 600 folks have raised their hands and told me they’re reading this site via RSS. That’s pretty good, given my actual request was buried under 500 words of rambling conjecture, and my Disqus commenting system went down for portions of the first day. Not to mention, my RSS feed has grown by about 90% since the last time I posted the request, yet the number of comments (plus Tweets and other responses) was three times higher. It was the most comments I’ve ever gotten on any post, period.

So I think it’s fair to say the call was answered (we missed the overall number by about 85 votes, but there’s still time). For at least a very vocal minority of readers, RSS is still a critical tool. But, reading through the comments, it’s clear RSS has major issues, and that no one is really expecting those issues to get resolved. Most of you depend on Google Reader, and feel like the Google+ integration has been a step backward. And those of you who are publishers feel like Feedburner (also a Google product) is neglected and untrustworthy, and that there are simply no good monetization tools.

But a ton of you thanked me for making my feed full text, and I won’t be stopping that anytime soon. Thanks all, and if you haven’t left a comment on the original thread, please do! If we get to 664, I’ll feel somehow more complete!

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Put Your Taproot Into the Independent Web

(image) This article – Early Facebook App Causes Is Being Reborn As A Polished Web Site For Good – caught my eye as I was nodding off last night (thanks so much for moving the web into my bedroom, Flipboard. No really.)

Now, it didn’t catch my eye because of its subject – Causes – but because of what its subject was doing: refocusing its business back out on the Independent Web, from its original home in the zoological garden that is the Facebook platform.

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It’s Not About Search Anymore, It’s About Deals

As in, who gets the best deal, why didn’t that deal go down, how do I get a deal, what should the deal terms be?

This is of course in the air given the whole Google+ fracas, but it’s part of a larger framework I’m thinking through and hope to write about. On the issue of “deals,” however, a little sketching out loud seems worthwhile.

Go read this piece: Facebook+Spotify: An ‘Unfair, Insider, Anti-Competitive’ Relationship…

It’s a common lament: A small developer who feels boxed out by whoever got the sweet deal. In this case, it’s on Facebook, but we all know it happens inside the Apple store as well (whoever gets top billing, gets sales).  Closed ecosystems controlled by one company create this dynamic. There’s only so much real estate, and the owner of the land gets to determine the most profitable use of it.

Google now appears to be acting the same way, cutting Google+ a “deal” so to speak, giving it the best real estate for all manner of search queries. That’s not how search was supposed to work. Search was supposed to reflect the ongoing conversation happening across all aspects of the Internet. If you were that small developer, you worked hard to get your service noticed on the web, and as it picked up a following, search would notice, start raising your profile in search results, and a virtuous loop began. Is that concept now dead?

Search isn’t supposed to be about cutting a deal to get your company’s wares to the top of relevant searches. In my reporting over the past week, most of my source conversations have been about failed deals – between Google and Facebook, or Google and Twitter. But search is supposed to be about showing the best results to consumers based on objective (or at least defensible and understandable) parameters, parameters *unrelated to the search engine itself.*

With Google Search Plus Your World (shortened by many to SPYW, which is just laughably bad as an acronym), it’s rather hard to tell the two apart anymore. When I wrote last year that Google = Google+, I meant it from a brand perspective. I didn’t realize how literal it’s become. Because with SPYW, all I’m getting is Google+ at the top of my results. I know I can turn SPYW off, and I probably will. Or, I can bail on Google+ altogether. But there is a real conundrum in doing so – more on that in my next post.

Some are arguing that search is no longer about results anymore, and that for years search has pretty much been about paid inclusion anyway (either paid through SEO,  or paid through ads, which increasingly don’t look like ads). That now, Google is focusing entirely on getting you an answer, and surfacing that answer right there on the results page. Perhaps the “right answer” is best found through cutting deals.

But I hope not. Because for me, search is a journey, not an answer.

This SPYW story has raised so many questions, it’s rather hard to sort through them all. I guess I’ll just keep writing till I feel like the writing’s done…

Related:

Hitler Is Pissed About Google+

Google Responds: No,That’s Not How Facebook Deal Went Down (Oh, And I Say: The Search Paradigm Is Broken)

Compete To Death, or Cooperate to Compete?

Twitter Statement on Google+ Integration with Google Search

Search, Plus Your World, As Long As It’s Our World

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Google Responds: No,That’s Not How Facebook Deal Went Down (Oh, And I Say: The Search Paradigm Is Broken)

(image) I’ve just been sent an official response from Google to the updated version of my story posted yesterday (Compete To Death, or Cooperate to Compete?). In that story, I reported about 2009 negotiations over incorporation of Facebook data into Google search. I quoted a source familiar with the negotiations on the Facebook side, who told me  “Senior executives at Google insisted that for technical reasons all information would need to be public and available to all,” and “The only reason Facebook has a Bing integration and not a Google integration is that Bing agreed to terms for protecting user privacy that Google would not.”

I’ve now had conversations with a source familiar with Google’s side of the story, and to say the company disagrees with how Facebook characterized the negotiations is to put it mildly. I’ve also spoken to my Facebook source, who has clarified some nuance as well. To get started, here’s the official, on the record statement, from Rachel Whetstone, SVP Global Communications and Public Affairs:

“We want to set the record straight. In 2009, we were negotiating with Facebook over access to its data, as has been reported.  To claim that the we couldn’t reach an agreement because Google wanted to make private data publicly available is simply untrue.”

My source familiar with Google’s side of the story goes further, and gave me more detail on why the deal went south, at least from Google’s point of view. According to this source, as part of the deal terms Facebook insisted that Google agree to not use publicly available Facebook information to build out a “social service.” The two sides had already agreed that Google would not use Facebook’s firehose (or private) data to build such a service, my source says.

So what does “publicly available” mean? Well, that’d be Facebook pages that any search engine can crawl – information on Facebook that people *want* search engines to know about. This is compared to the firehose data that was the core asset being discussed between the parties. This firehose data is what Google would need in order to surface personal Facebook pages relevant to you in the context of a search query. (So, for example, if you were my friend on Facebook, and you searched for “Battelle soccer” on Google, then with the proposed deal, you’d see pictures of my kids’ soccer games that I had posted to Facebook).

Apparently, Google believed that Facebook’s demand around public information could be interpreted  as applying to how Google’s own search service was delivered, not to mention how it (or other products) might evolve. Interpretation is always where the devil is in these deals. Who’s to say, after all, that Google’s “social search” is not a “social service”? And Google Pages, Maps, etc. – those are arguably social in nature, or will be in the future.

Google balked at this language, and the deal fell apart. My Google source also disputes the claim that Google balked at being able to technically separate public from private data. Conversely, my Facebook source counters that the real issue of public vs. private had to do with Google’s refusal to honor changes in privacy settings over time – for example, if I deleted those soccer pictures, they should also be deleted from Google’s index. There’s a point where this all devolves to she said/he said, because the deal never happened, and to be honest, there are larger points to make.

So let’s start with this: If Facebook indeed demanded that Google not use publicly available Facebook data, it’s certainly understandable why Google wouldn’t agree to the deal. It may not seem obvious, but there is an awful lot of publicly available Facebook pages and data out there. Starbucks, for example, is more than happy to let anyone see its Facebook page, no matter if you’re logged in or not. And then there’s all that Facebook open graph data out on the public web – tons of sites show Facebook status updates, like counts and so on in a public fashion. In short, asking Google to not leverage that data in anything that might constitute a “social service” is anathema to a company who claims its mission to crawl all publicly available information, organize it, and make it available.

It’s one thing to ask that Google not use Facebook’s own social graph and private data to build new social services – after all, the social graph is Facebook’s crown jewels. But it’s quite another thing to ask Google to ignore other public information completely.

From Google’s point of view, Facebook was crippling future products and services that Google might create, which was tantamount to an insurance policy of sorts that Google wouldn’t become a strong competitor, at least not one that  leverages public information from Facebook. Google balked. If Facebook’s demand could have been interpreted as also applying to Google’s search results, well, that’s a stone cold deal killer.

I certainly understand why Facebook might ask for what they did, it’s not crazy. Google might well have responded by narrowing the deal, saying “Fine, you don’t build a search engine, and we won’t build a social network. But we should have the right to create other kinds of social services.” As far as I know, Google didn’t chose to say that. (Microsoft apparently did). And I think I know why: The two companies realized they were dancing on the head of a pin. Search = social, social = search. They couldn’t figure out a way to tease the two apart. Microsoft has cast its lot with Facebook, Google, not so much.

When high stakes deals fall apart, both sides usually claim the other is at fault, and that certainly seems to be the case here. It’s also the case with the Twitter deal, which I’ve gotten a fair amount of new information about as well. I hope to dig into that in another post. For now, I want to pull back a second and comment on what I think is really going on here, at least from the perspective of a longer view.

Our Cherished Search Paradigm Is Broken (But We Will Fix It….Eventually)

I think what we have here is a clear indication that the search paradigm we’ve operated under for a decade or so is broken. That paradigm stems from Google’s original letter to shareholders in 2004. Remember this line?Our search results are the best we know how to produce. They are unbiased and objective, and we do not accept payment for them or for inclusion or more frequent updating.

In many cases, it’s simply naive to claim Google is unbiased or objective. Google often favors its own properties over others, as Danny points out in Real-Life Examples Of How Google’s “Search Plus” Pushes Google+ Over Relevancy and others have also detailed. But there is a reason: if you’re going to show results from all other possible contenders, replete with their associated UI and functional bells and whistles (as Google does with its own Maps, Pages, Plus etc.), well, it’s nearly impossible now to determine which service is the right answer to a particular person’s query. Not to mention, you need to put a deal in place to get all the functionality of the service. Instead, Google has opted, in many cases, to go with their own stuff.

This is not a new idea, by the way. Yahoo’s been doing it this way from the beginning. The contentious issue is that biasing some results toward Google’s own products runs counter to Google’s founding philosophy.

I have a theory as to why all this is happening, and I don’t entirely blame Google. Back when search wasn’t personalized, Google could defensibly say that one service was better than another because it got more traffic, was linked to more (better PageRank), and so on. Back when everyone got the same results and the web was one homogenous glob of HTML, well, you could claim “this is the best result for the general population.” But personalized search has broken that framework – I lamented this back in 2008 with this post: Search Was Our Social Glue. But That Is Dissolving (more here).

With the rise of Facebook and the app economy, the problem of search has become terribly complicated. If you want to have results from Facebook in your search, well, that search service has to do a deal with Facebook. But what if you want results from your running app (I have hundreds of rides and runs logged on AllSportGPS, for example)? Or Instagram? Or Path, for that matter? Do they all have to do deals with Google and Bing? There are so many unconnected pieces of the Internet now (millions of apps, most of our own Facebook experiences, etc. etc.) that what’s a good personal result for one person is not necessarily good for another. If Google is to stay true to its original mission, it needs a new framework and a massive number of new signals – new glue – to put the pieces back together.

There are several ways to resolve this, and in another post, I hope to explore them (one of them, of course, is simply that everyone should just go through Facebook. That’s the vision of Open Graph). But for now, I’m just going to say this: The issues raised by this kerfuffle are far larger than Google vs. Facebook, or Google vs. Twitter. We are in the midst of a major search paradigm shift, and there will be far more tears before it gets resolved. But resolve it must, and resolve it will.

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