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US regulators extend probe of Google's Admeld buy
by Staff Writers
Washington (AFP) July 28, 2011

Google's acquisition of Admeld, a company that provides an advertising platform for publishers, is coming under increased antitrust scrutiny from the US Department of Justice.

Google said in a blog post late Wednesday that the department has asked the Internet search and advertising giant for more information about the deal.

Google announced the acquisition of Admeld last month. The purchase price was not revealed but technology blog TechCrunch put it at around $400 million.

"We've been discussing this deal with the Department of Justice, who are obliged to review the transaction because of its purchase price," Neal Mohan, Google's vice president of display advertising, said in the blog post.

"As they do for many acquisitions, they have sent us a 'second request,' which means that they are asking for more information in order to complete their review of this particular acquisition," Mohan said.

"This doesn't surprise us, as today's display advertising industry is very new and highly complex," he said. "But we'll work to enable this review to be concluded as quickly as possible."

Admeld chief executive Michael Barrett said he was confident the deal would be cleared but was "disappointed by this decision because it will delay our efforts to bring even more innovative services to our clients and partners."

The Mountain View, California-based Google makes most of its money from advertising tied to Internet search but is seeking to carve out a bigger slice of the market for display advertising, which includes rich media, digital video and banner ads.

Mohan said Google believes the display advertising business "is, and will remain, extremely competitive."

"In fact, since we announced this acquisition about a month ago, at least three new and expanded platforms for buyers and publishers have been launched," he said. "Others continue to grow."

According to digital marketing firm eMarketer, Facebook is on track to pass Yahoo! in US display advertising revenue this year while Google will also gain market share.

Facebook's share of US online display ad revenue will grow to 17.7 percent this year, up from 12.2 percent last year, while Yahoo!'s share is expected to decline to 13.1 percent in 2011 from 14.4 percent last year, eMarketer said.

Google's share of US display advertising revenue will grow to 9.3 percent this year from 8.6 percent last year, eMarketer said.

Google has come in for increasing regulatory review in the United States and Europe as it has grown from a scrappy startup into an Internet titan.

Among the deals that have drawn scrutiny are Google's $3.1 billion purchase of online ad firm DoubleClick, its $750 million buy of mobile ad network AdMob and its $700 million acquisition of flight data company ITA Software.

In 2008, Google was forced to drop plans for a joint search advertising partnership with Yahoo! amid opposition from the Justice Department.

Google also announced last month that it was cooperating with a US Federal Trade Commission probe into its search and advertising business.




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Twitter to serve up ads with 'Promoted Tweets'
San Francisco (AFP) July 28, 2011 - Twitter said Thursday that it will begin placing advertisements known as "Promoted Tweets" in the timelines of users who follow a particular brand or company.

Twitter said it will begin testing the new advertising offering with a number of companies including Dell, Gatorade, Groupon, JetBlue, LivingSocial, Microsoft, Red Bull, Starbucks and Virgin America.

Promoted Tweets from non-profits such as the Make-A-Wish Foundation and the American Red Cross will also be shown, the San Francisco-based Twitter said in a blog post.

"When we decide to follow a favorite brand, business or charitable organization, we expect to be among the first to get a special announcement, access to exclusive content or a great offer," Twitter said.

"That's why starting today, we're introducing a way to ensure that the most important tweets from the organizations you follow reach you directly," it said.

Twitter has enjoyed explosive growth since it was founded in 2006 but it is unclear how successful it has been in translating its popularity into profit.

Twitter chief executive Dick Costolo, speaking at the Fortune Brainstorm Tech conference in Aspen, Colorado, last week declined to reveal whether the privately held company is profitable.

But he said the number of advertisers on the platform is up 600 percent this year over last year, when it numbered in the hundreds.

Twitter said the new advertising scheme will involve placing "Promoted Tweets" from accounts that a user follows "at or near the top" of their timeline, or stream of messages, when a user logs in.

"These Promoted Tweets will scroll through the timeline like any other tweet, and like regular tweets, they will appear in your timeline just once," Twitter said.

"Promoted Tweets can also be easily dismissed from your timeline with a single click," Twitter added.

The advertiser-sponsored tweets will only be shown on the accounts of users of the Twitter.com website, not the scores of third-party applications used to access the service.





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INTERNET SPACE
China cracks down on wi-fi in public spaces
Beijing (AFP) July 28, 2011
China has ordered public spaces offering wi-fi web access to install costly software to enable police to identify people using the service, state media said Thursday. The software, which also gives police a list of all websites visited by an online user, costs between 20,000 yuan ($3,100) and 60,000 yuan, the China Business News said. As a result, many establishments such as bars, restau ... read more


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