Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
Don’t Call It Surveillance
The FTC published a new and very detailed report on the data collection practices of large social media and video platforms. (Read AdExchanger’s coverage here.)
The report lists many concerns over how platforms collect and use data for advertising. But more pointedly, the FTC took particular issue with the behavioral advertising business model, claiming it incentivizes companies to go beyond what consumers consider acceptable marketing use cases.
In a statement, IAB CEO David Cohen blasted “the FTC’s continued characterization of the digital advertising industry as engaged in ‘mass commercial surveillance.’”
The FTC, Cohen writes without irony, “suggests that the personal data of consumers is covertly collected and used for advertising purposes. Nothing could be further from the truth.”
“Countless studies have shown that consumers understand the value exchange” and also welcome advertising’s role in making the internet free, he added.
The FTC obviously disagrees that the average consumer understands how advertisers use data to track and target audiences. And the argument that advertising makes the internet free rings somewhat hollow, given that publishers increasingly turn to subscription revenue, in part because ad tech has effectively demonetized news content.
But one thing is clear: The gulf between the ad industry’s perception of itself and that of regulators feels wider than ever.
Shark Tank, But It’s QVC
Amazon is debuting a “Shark Tank”-style show, The Wall Street Journal reports, during which sellers will compete for positioning in a special “Buy It Now” box on Amazon, as well as for a $20,000 cash prize and publicity.
But the main prize is essentially credits for new Amazon shopper marketing placements. As if to reinforce that point, Amazon’s head of US ad sales, Tanner Elton, is a judge.
“It felt like a regular meeting at Amazon,” says Michelle Rothman, VP of shopping for Prime Video, describing her experience as a judge.
Small businesses want to break out within their category on Amazon. But products with interesting value propositions are priced out of paid media by well-known brands and don’t necessarily have organic search traction for their product, either. (The Journal cites a manufacturer of devices for home CPR emergencies, for example.)
Amazon, meanwhile, is also eager – not to say desperate – to cultivate live video shopping habits.
“This feels more elegant than QR codes,” says Bernstein analyst Mark Shmulik.
Though, to be fair, there’s not much that isn’t more elegant than a QR code. Which is the problem.
SEO Wizards Pondering Forbes
Ever wonder why a Forbes article pops up at the top of Google results no matter what you’re searching for?
So did Lars Lofgren, chief growth officer and co-founder of performance marketing agency Stone Press.
Over on his blog, Lofgren outlines how Forbes Marketplace, which he calls a “parasite SEO” affiliate, has grown exponentially over the past four years by pushing extremely basic, nonauthoritative content about everything from ranking CBD gummies to offering how-to tips on dealing with roach infestations. Apparently, Forbes Marketplace has grown so large – like the parasite outgrowing the host – that it tried to acquire Forbes proper, according to a disgruntled co-founder of the SEO affiliate business that trades on the Forbes name and has Forbes as a minority owner.
This also isn’t the first time the Forbes name has been connected to online-advertising-related shenanigans. Not even six months ago, the company was caught operating a made-for-arbitrage subdomain at www3.forbes.com.
But what’s especially interesting here is just how successful Marketplace is – solidly in the nine digits for total revenue, possibly as much as $400 million, Lofgren estimates.
In short, this feels like an open-and-shut case of site reputation abuse, which Google officially categorizes as spam. And yet, it’s not only persisted but thrived – at the risk of what little credibility Forbes might have left.
But Wait, There’s More!
Publicis buys Mars United Commerce in a deal valuing the shopper marketing agency at $600 million. [WSJ]
YouTube unveils “Hype,” a new way for fans to help smaller creators grow their reach. [TechCrunch]
The DOJ vs. Google antitrust trial, Day 8: Googlers are from Mars, lawyers are from Venus. [Marketecture]
“There’s a point of diminishing returns”: Why retail media’s reckoning may be on the horizon. [Digiday]
You’re Hired!
Comcast Advertising names Scott Weisenthal as head of global marketing and insights. [release]
Relo Metrics makes senior hires across North America, EMEA and APAC. [release]
