Cashing Out: Week of June 5th – 11th 2011 in Online Marketing News

If at first you don’t succeed: Google to acquire Admeld

Reports began to surface this week that Google has set its sights on buying online ad optimization firm Admeld. If the acquisition goes through, Google could use Admeld in conjunction with their DoubleClick ad exchange to help publishers choose ads in real-time across ad networks and exchanges, with the option to go with the highest bidder.

The deal has yet to be confirmed by either Google or Admeld, but, according to the New York Times‘ Bits Blog, the price could be in the neighborhood of $400 million.

Apparently this isn’t the first time Google has tried to buy the display ad company. In February, they offered Admeld between $150 million and $200 million for an acquisition, but, as Business Insider reported, “talks broke down over price.”

If Admeld accepts the offer of double the amount they rejected this winter, it will mark Google’s twelfth acquisition this year.

Twitter’s OAuth error makes for not-so-private messages

TechCrunch reported June 10 that a possible oversight on the part of Twitter allows third party app developers to view the content of your private messages during the OAuth software authorization process.

The authorization screen clearly states that the application you’re authorizing will not be able to access your direct messages, but a test application created by developer Simon Colijn shows a flaw in the authorization process does indeed enable third parties to view private messages. A second, independent test app, created by Mike Robinson, another developer, confirms the bug.

The problem may have arisen with updates to Oauth’s UI that ended up being delayed until June. Apparently, the new UI remained live, though its launch was postponed.

By way of a statement, Twitter told TechCrunch:

“We are updating the text in the current permissions screens to clarify what information applications will or will not have access to during the transition period.”

Amazon dumps Connecticut and Arkansas affiliates

As a result of affiliate nexus tax legislation passed earlier this year in Connecticut and Arkansas, this week Amazon cut off its affiliations in those states, The Wall Street Journal reported.

It was to be expected, as the company has dumped affiliates in other states, like Illinois, rather than pay out taxes on sales made online.

The result is that the governments of Connecticut and Arkansas won’t be seeing any revenue from taxing Amazon sales, as the termination of those states’ affiliate programs means there simply won’t be any sales to tax.

The neighboring state of Rhode Island recently passed similar legislation, with no benefit to the state coffers. Head of the R.I. Department of Revenue’s Revenue Analysis Office, Paul L. Dion was quoted in a Providence Business News article as saying his department does “not believe that there has been any sales tax collected as a result of the Amazon legislation.”

And, even if Connecticut and Arkansas manage to generate more revenue than did Rhode Island through this new legislation, there remains the concern over the loss in income taxes precipitated by the loss of so many affiliate jobs.

Content pirates blacklisted for ad sales

A new policy enacted by GroupM, WPP’s global ad buying outfit, seeks to strike back at content pirates by banning the purchase of ads on sites that promote piracy.

GroupM is collaborating with its clients, like Time Warner and Paramount, to name a few, to compile a do-not-buy list for online advertising. The proposed list will ban advertising on 2,221 U.S. sites that have recently offered pirated content, like watch-tv-shows-online.net.

The logic is that interfering with a source of revenue for these sites will cripple them altogether, possibly leading them to shut down when they become unprofitable.

The fact that a large part of GroupM’s clients are content producers themselves is definitely a factor here, and many of them will be helping in the company’s blacklisting initiative by providing them with their own lists of pirates.

John Montgomery, COO for GroupM Interaction, is clear about the company’s stance versus content pirating:

“Great content fuels the web, and if that is being illicitly distributed, we feel it’s a problem for the long term,” he said, adding “We have a number of clients in the content-producing area […] we felt it was time to address it and we have the technology in place to do it now.”

eBay buys Magento

eBay announced on their blog June 6 that they are acquiring the open-source e-commerce platform Magento. The deal will likely close during the third quarter of 2011 for an undisclosed sum. The new acquisition will become essential to X.commerce, eBay’s new open commerce platform.

A video statement released by eBay’s CEO John Donahoe addresses developers in particular:

“This is a really exciting development, because Magento builds on our existing technology assets and is complimentary to the platform capabilities of GSI Commerce, which we’re also in the process of acquiring. Combined, we believe that these acquisitions will position us to become the strategic commerce partner of choice for retailers of all sizes.”

About Emily Wilkinson

Emily Wilkinson is a Montreal writer and editor who recently joined ReveNews.com. Her experience comes largely from her work at print publications like La Scena Musicale, where she alternated between positions as content manager, copy editor and journalist.
She believes in the importance of strong writing, be it in journalism or in other media, like blogging or even social networking. Her prerogative: though language will and ought to evolve, a good writer need never sacrifice the communicative power of text that is written with thought and care, whatever the venue.
Find Emily on Twitter @EditorWilkinson

2 Responses to Cashing Out: Week of June 5th – 11th 2011 in Online Marketing News

  1. […] surpass paid search …Google acquires yield optimisation firm AdmeldComputer Business ReviewCashing Out: Week of June 5th – 11th 2011 in Online Marketing NewsReveNewsGoogle claims 'there is an ad for everyone'Equimedia Marketing […]

  2. Anonymous says:

     Online marketing is one type of marketing. The authorization screen clearly states that allow the application for online marketing to be able to access direct messages.