Yesterday’s approval by the FTC of the Google DoubleClick merger lays down one more hurdle in the consolidation of the major interactive media delivery channels. Given the frenzy of interest from reporters earlier today, though expected, it was still somewhat of a surprise.
In parallel the FTC also released the discussion document – “Online behavioral advertising – Moving the discussion forward to possible self-regulatory principles”.
So how should we determine these portents as we end another year of hyper growth in the interactive media space? Is it an olive branch to the EU around the ruling that the US will start to take consumer privacy more seriously? Perhaps, though most of the EU focus has been on competitive aspects of the merger, not privacy. In fact both Google and DoubleClick have been involved in the debate (as indeed they should be given the legislative risk). Perhaps it’s just coincidence as folks clear their respective to-do piles before leaving for well-earned rests. Given it is an election year, next year the privacy football will likely get as much air as a Brett Favre touch-down pass, so they’re going to be super-busy.
So for the industry, is it a gift or a lump of coal? For the publishers, the consolidation of such data without a clearly articulated position continues to be concerning. Given sites focus on yield, how much inventory they can sell directly how much they divest to networks which now includes Google. If Google can leverage position through its use of data to improve yield and take more of the top, it is definitely coal.
So that makes it a gift for the advertiser right? Not necessarily. The recent acquisitions by both Google and Microsoft shifts the pendulum of media control into very few hands and potentially can restrict the effectiveness the advertiser can garner to the new and emerging technologies. Or it at least corrals the advertiser in a continual cycle of pay-as-you-go, not great for the advertiser. This problem will be fixed on January 29, but until then – coal!
And for the consumer? Sorry, coal again. But we can’t lay that puppy at the feet of just Google and DoubleClick. We all need to elevate the standards of notice, choice, and consent in the space.
With so much coal going around at least we’ll be warm, and I think we can look forward to next year when the gap created by the acquisitions will make way for new and exciting technologies that deal with some of these issues head on and invigorate the ad serving industry.
Best and seasonal greetings, especially to Hellman and Friedman, for whom the gifts may be a little late.
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