This was bound to happen. Microsoft lost the DoubleClick battle to Google and is now leading the rally against the deal along with Yahoo and AT&T. The reason: Google's acquisition of Doubleclick will make it a real brutal force in online advertising which is being termed as "Monopoly" by the competitors. The second concern, which seems logical, is related to the usage of personal data which is being collected by DoubleClick.
I anticipated this action from Microsoft and probably others as well and hence waited to write about the same. The surprising fact is that it is coming from companies which in a way are the most dominant players in their own markets or have had a monopolistic history. Microsoft has almost 90% of the consumer OS market share, Yahoo enjoys more than 50% share of personal pages with My Yahoo, and AT&T was a telephony monopoly until 1980s.
Let's first look at the definition of "Monopoly" from Wikepedia:
In economics, a monopoly (from the Latin word monopolium - Greek language monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service. Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.
In no way, this deal can lead to a monopoly as prior to the acquisition, Google and DoubleClick had different products and had their share of competitors. The merger of these two can definitely lead to a new business model in online advertising but monopoly.
This also goes on to proving that all the anticipation about this deal not making sense and Microsoft intentionally losing the deal is not true. The truth is clear; Microsoft/Yahoo wanted to buy DoubleClick but could not.
Microsoft and Yahoo: there is no good in crying over spilled milk. Go ahead, build better products and services which create value for advertisers and publishers. If you can, they will come to you; but if you can't, at least do not be an obstacle for someone who is doing it.
Monday, April 16, 2007
Microsoft and others' emotional outcry over Google's Win
Wednesday, April 11, 2007
GooTube Rivals Yahoo and Viacom Join Hands
Enemy's Enemy becomes a great friend. This saying has been characterized by the latest deal between Viacom, which filed a $1 Bn lawsuit against YouTube, and Yahoo which is Google's biggest rival in search advertising space.
According to a CNet News, Yahoo and Viacom have signed a multiyear deal in which Yahoo will serve sponsored search and contextual ads on all 33 Viacom sites including MTV Networks' VH1 and Comedy Central. The deal will get real big one once Yahoo gets all the 140 Viacom sites worldwide which is also a possibility.
Yahoo is really hitting hard on its chief competitors i.e. Google and Microsoft with these deals like this and taking away their key executives as in the case of TellMe Networks.
Saturday, April 7, 2007
Google Launches Voice Local Search: 800-GOOG-411
Google's Local Search has got voice now. Today, Google has announced the experimental launch of its voice local search 1-800-GOOG-411, a completely automated system without human operators, which can be used to obtain local business information. The service is based on the local business information available through Google Maps. Now you have best of both worlds, Google's information powerhouse coupled with ease of access through any phone; not necessarily mobile phone. And as usual with all the Google services, it is free!! (Please read the fine print as well stating that you might be charged minutes by your carrier)
Saturday, March 31, 2007
IBM Building Video Viewer for Blinds
Thursday, March 29, 2007
YouTube Troubles Continue, Sued for $20 Mn By Indian Company
YouTube is surrounded by copyright violation suits these days with one or another company coming forward to sue YouTube. The latest comes from an Indian music and entertainment company, T-Series, which has filed a lawsuit for $20 Million for copyright violation. The case has been filed in the New Delhi High Court.