Microsoft is launching an advertising platform designed to let operators sell ads on IPTV shows. Mediaroom Advertising, part of Microsoft’s IPTV software platform, lets service providers deliver targeted ads to set-top boxes and measure consumers’ responses using web-like tools.
Microsoft says the system can deliver ads into both linear and on-demand content, as well as interactive TV applications and electronic program guides. It uses technology from two recent Microsoft acquisitions – aQuantive and Navic Networks. The platform will be available next year to service providers that use Micrsoft’s Mediaroom software.
Mediaroom Advertising was launched at IBC in Amsterdam. What they didn’t say (unless you asked) was that the platform won’t be available until mid 2009, and it isn’t even yet in trials with a service provider, so it’s early days yet. At IBC, our new IPTV middleware was successfully launched, and attracted widespread positive comment. In contrast,posting a comment on our own IBC blog, Eugene Sarmiento says that the Mediaroom looks just the same as a year ago, and Microsoft no longer has an advantage in GUI and user interface. Neverthless, we shouldn’t take lightly the potential for Microsoft to leverage its extensive advertising capability to enhance its IPTV offering.
Google has launched a new website to defend against growing criticism of its ad deal with Yahoo. The detailed website explains the reasons behind the strategic alliance and its supposed benefits to consumers, advertisers and publishers.
The site says the deal will allow Yahoo! to “remain a vibrant and innovative presence on the internet” rather than being taken over to Microsoft, and likens the arrangement to Ford using Toyota hybrid engines in some of its cars.
Google’s deal was an important part of Yahoo’s defence against Microsoft earlier this year. As part of the agreement, Google will in effect help sell ads that appear next to Yahoo search results in the US and Canada. Yahoo says ad sales revenue via Google’s ad brokering could raise as much as $800m annually. The key issue is that Google and Yahoo have about 80% of the US online advertising market between them.
There’s lots of positive quotes on the new website from VIPs in different industry sectors, but the very existence of this site makes me think that Google is seriously worried that the deal will be bocked by one or more regulators.
The US Department of Justice is investigating for potential violations of anti-trust statutes, including price fixing. It has hired special counsel, Sanford Litvack, to review evidence and help build a case if the department moves to block the deal. A decision is expected within the next two weeks.
Google has also said that the Yahoo partnership does not need pre-approval from the DoJ. In a press conference on Sept 18, Eric Schmidt said that the deal will be finalised ‘in October’ irrespective of whether the regulators have finished their reviews. He said he was “not disposed to waste any more time with the reviews” and “time is money in our business.”
I wonder whether this is all bluster? Despite all the worthy words on the Google website, there are plenty of people in the advertising industry worried that the deal will result in higher prices, and of course Microsoft is also busy applying its prodigious lobbying capability on the case.
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Not surprising perhaps, given Google’s dominance in web search, but the numbers below from M:Metrics tell the story very comprehensively. These figures back up my own thoughts a few weeks ago: Google will win in mobile (in search, at least).
Yahoo has a superior mobile search client, and Yahoo also has many more operator partnerships than Google, but all this counts for little, because users simply point their browsers to the site they know best, and Google wins hands down without even having much of a dedicated mobile search offering.
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