New Yahoo! Mail promises sharper targeting of ads

Better ad targeting is one feature of the new Yahoo! Mail, which is going live for all users worldwide over the next few weeks. Besides higher speeds and better social media links, the new ad service will draw on keywords found in e-mail messages to target ads within e-mails and on the Yahoo! network.

Yahoo will open up the latest version of Yahoo Mail to all 284 million users worldwide in the coming weeks after launching it in beta last October to a limited number of users, the company said Tuesday. The upgrade promises to make the e-mail service twice as fast, safer from spam and compatible with social media.

Yahoo will also use keywords derived from scanning email messages for targeting interest-based ads across its ad network, as well as within the updated Yahoo Mail. The search giant expects the upgrade to better target ads based on keywords gleaned from scanning email content. "This might result in ads being shown to you in Mail for products and services that are related to those keywords. In addition, these keywords may contribute to the interest categories we assign to your browser for interest-based ads that we show throughout the Yahoo! Ad Network," states a FAQ about the Yahoo Mail Beta on the company's privacy site.

For users, the main changes include the ability to view and share updates from Facebook, Twitter and Zynga without having to leave the inbox. They can also instantly reply to messages from Facebook and chat with Facebook friends within Yahoo Mail.

During the first-quarter conference call, Yahoo CEO Carol Bartz said that among the 7 million to 8 million users participating in the public beta, engagement with Yahoo Mail was up 30%. Whether that usage gain can be maintained or increased with the full rollout of the new version of the email service remains to be seen.

While Yahoo, Google and AOL already serve "relevant" ads in the mail client, an Adotas article yesterday noted that Yahoo would be going a step further by extending the use of email data to targeting across its network. In the FAQ, Yahoo also explains that it's maintaining the same privacy practices as for the existing Yahoo Mail, and provides a link where people can set interest preferences or opt out of interest-based advertising entirely.

In addition, an automatic slideshow feature allows people to view photos and videos from sites like Flickr and YouTube within messages and inboxes that can be customized with a variety of backgrounds and graphic options. When it comes to search, a new left-hand column allows users to sort search results by sender, attachment file, date or folder location.

The revamped Yahoo Mail offers a set of applications that enable users to track online orders, be removed from unwanted newsletters and send large files. Yahoo says its new spam and anti-phishing technology have helped cut spam reports by 60%, blocking some 550 billion unwanted messages a month in the process.

"Yahoo's vision for online communications brings together all the tools that people use to connect -- email, chat, SMS, and social updates -- and makes it easier for them to share content and engage in conversations with the people that matter most to them," said Blake Irving, Yahoo's chief product officer, in a statement.

The overhaul is intended to help Yahoo fend off challenges from Google's Gmail and Facebook's own messaging system. During the first quarter, time spent and page views on the company's communication and communities properties -- which include Yahoo Mail -- dropped 6% and 10%, respectively.

In addition to end users, Yahoo said the enhanced email service would also be available to its mobile and telecom partners, including Nokia, Verizon, Rogers Communications and other device makers and broadband providers. Yahoo struck a deal with Nokia last year to power its email and chat services.

Privacy Controls For Twitter Applications: Twitterers Can Expect Greater Control In Future

Twitter Inc., the micro-blogging service, added tools that give users more control over how data is shared with third-party applications.

The company will provide more detailed information on privacy options for letting outside software makers read posts and update profiles, Twitter said on its blog today. Applications with access to users’ direct messages will need to verify previously granted permissions. Applications that don’t require that information will lose access by the end of the month.

“We’re announcing an update to help you make more informed choices about the way third-party apps integrate with your Twitter account,” San Francisco-based Twitter said its blog. “We’ve been preparing these changes in response to requests from users and developers who asked for a greater level of clarity and control.”

Twitter is boosting its privacy controls as technology companies come under growing scrutiny about how they get users’ data or enable others to do so. The Senate Commerce Committee tomorrow will hold a hearing tomorrow with Twitter rival Facebook Inc., along with Apple Inc (AAPL) and Google Inc. (GOOG), to answer questions about data collection and usage on mobile devices.

There are hundreds of thousands of third-party applications that aim to enhance Twitter’s features, such as automatically sharing Tweets on other services or connecting players on game platforms.

Facebook drops restriction on some types of ads

Don't be surprised to see more marketing efforts tied to cigarettes and booze on Facebook Ads. That's because the company has lifted prior restrictions on promotions involving tobacco, dairy, gambling, firearms, prescription drugs, and gasoline, according to a post on the site Tuesday.

The updated promotions rules would also permit marketers to require a purchase for entry, and open up offers to those under 18, or to people in certain countries such as Sweden or India, where sweepstakes were previously banned.

Facebook, however, emphasized that all applicable laws and regulations apply in jurisdictions where contests or sweepstakes are held. In other words, it's now up to brands to ensure that their promotions on their Facebook ads don't violate any local, state or other laws.

The looser rules are part of updated promotions guidelines that Facebook unveiled this week as part of an effort to make them easier to understand and consistent with the format of other Facebook terms and policies regarding Facebook ads, the company said. Obviously, the step opens up potential new opportunities with Facebook ads to companies whose "sin products" may have previously limited their promotions on the social network.

"The change could lead big brands in the now-unrestricted industries to step up their marketing efforts with their Facebook ads , drawing spend away from more traditional marketing mediums such as TV and print. It will also allow Facebook marketing more flexibility in promotion targeting and rules," according to an Inside Facebook post about Facebook ads on the move today.

The Facebook-tracking blog noted that some brands appear to have skirted certain restrictions in the past. Starbucks, for instance, boosted its number of fans with a free ice cream giveaway two years ago, which would appear to violate the ban on dairy-related promotions. And the Facebook page for Bud Light shows an ongoing contest to win a trip to a UFC fight (although Bud Light itself is not mentioned as a part of the grand prize).

Shifting rules around promotions and gray areas has led to some confusion about what's compliant with the policy. "This simplification of the guidelines should make things more clear to some, but it could also be misinterpreted to mean these types of promotions are legal when they violate local laws," according to Inside Facebook.

The new guidelines also require that all promotions now must be administered via applications on Facebook, either on an app canvas page or in a tab on a brand page. They also impose new limits on use of Facebook's intellectual property. Advertisers are allowed to use Facebook's name and trademarks only "in connection with a promotion or to mention Facebook in the rules or materials relating to a promotion."

According to an advertising law alert sent out by the law firm Frankfurt Kurnit Klein & Selz: "This appears to mean that advertisers can only use the Facebook name and trademarks to release Facebook from any liability associated with the promotion, to acknowledge that Facebook does not endorse or sponsor the promotion, and to inform the entrant that their personal information is being provided to the advertiser and not to Facebook."

So this is the policy regarding Facebook marketing.

Among other things, the new guidelines could end up creating more work for lawyers.

Facebook admits effort to target Google with negative PR campaign

Facebook executives have been left with red faces after it emerged that the social network hired public relations firm Burson-Marsteller to run a smear campaign against Google. Burson offered to help a blogger place an anti-Google op-ed with high-profile publications, but the blogger instead went public with the PR firm's e-mails. Facebook confirmed the story, saying it hired the firm, in part, because it was displeased that Google's social efforts have tried to make use of Facebook data.

The social network secretly hired a PR firm to plant negative stories about the search giant, I am about to reveal a caper that is blowing up in their face, and escalating their war. Plus, more on the ensuing blame game and the PR hacks who did the job.

For the past few days, a mystery has been unfolding in Silicon Valley. Somebody, it seems, hired Burson-Marsteller, a top public-relations firm, to pitch anti-Google stories to newspapers, urging them to investigate claims that Google was invading people’s privacy. Burson even offered to help an influential blogger write a Google-bashing op-ed, which it promised it could place in outlets like The Washington Post, Politico, and The Huffington Post.

The plot backfired when the blogger turned down Burson’s offer and posted the emails that Burson had sent him. It got worse when USA Today broke a story accusing Burson of spreading a “whisper campaign” about Google “on behalf of an unnamed client.”

But who was the mysterious unnamed client? While fingers pointed at Apple and Microsoft, I've discovered that it's a company nobody suspected—Facebook.

Confronted with evidence, a Facebook spokesman last night confirmed that Facebook hired Burson, citing two reasons: first, it believes Google is doing some things in social networking that raise privacy concerns; second, and perhaps more important, Facebook resents Google’s attempts to use Facebook data in its own social-networking service.

Like a Cold War spy case made public, the PR fiasco reveals—and ratchets up—the growing rivalry between Google and Facebook. Google, the search giant, views Facebook as a threat, and has been determined to fight back by launching a social-networking system of its own. So far, however, Google has not had much luck, but Facebook nonetheless felt it necessary to return fire—clandestinely.

Here were two guys from one of the biggest PR agencies in the world, blustering around Silicon Valley like a pair of Keystone Kops.

At issue in this latest skirmish is a Google tool called Social Circle, which lets people with Gmail accounts see information not only about their friends but also about the friends of their friends, which Google calls “secondary connections.” Burson, in its pitch to journalists, claimed Social Circle was “designed to scrape private data and build deeply personal dossiers on millions of users—in a direct and flagrant violation of [Google's] agreement with the FTC.”

Also from Burson: “The American people must be made aware of the now immediate intrusions into their deeply personal lives Google is cataloging and broadcasting every minute of every day—without their permission.”

Chris Soghoian, a blogger Burson offered to help write an op-ed, says Burson was “making a mountain out of molehill,” and that Social Circle isn’t dangerous.

Soghoian asked Burson directly what company was paying the agency to spread this stuff around. Burson wouldn’t say. Miffed, Soghoian published their email exchange online. At issue in this latest skirmish is a Google tool called Social Circle, which lets people with Gmail accounts see information not only about their friends but also about the friends of their friends, which Google calls “secondary connections. Burson, in its pitch to journalists, claimed Social Circle was “designed to scrape private data and build deeply personal dossiers on millions of users—in a direct and flagrant violation of [Google's] agreement with the FTC.”"You can see it here.

The story gained wider attention when USA Today reported that two PR flacks from Burson—former CNBC tech reporter Jim Goldman, and John Mercurio, a former political reporter—had been pushing reporters at USA Today and other outlets to write stories and editorials claiming Google was violating people’s privacy with Social Circle.

USA Today looked into it, but decided the claims were exaggerated—at which point, Goldman ran for cover. “After Goldman’s pitch proved largely untrue, he subsequently declined USA Today’s requests for comments,” the paper reported.

The mess, seemingly worthy of a Nixon reelection campaign, is embarrassing for Facebook, which has struggled at times to brand itself as trustworthy. But even more so for Burson-Marsteller, a huge PR firm that has represented lots of blue-chip corporate clients in its 58-year history. Mark Penn, Burson’s CEO, has been a political consultant for Bill Clinton, and is best known as the chief strategist in HIllary Clinton’s 2008 presidential campaign.

Yet here were two guys from one of the biggest and best-known PR agencies in the world, blustering around Silicon Valley like a pair of Keystone Kops. Even yesterday, when I asked flat out whether Facebook had been the client behind the campaign, a Burson spokesman refused to confirm it. Then, later, learning that Facebook had come clean, the Burson spokesman wrote back and confirmed it.

As for Facebook, its pious handwringing about user privacy might be a bit of a smokescreen. What really seems to be angering Facebook is that some of the stuff that pops up under “secondary connections” in Google’s Social Circle is content pulled from Facebook.

In other words, just as Google built Google News by taking content created by hundreds of newspapers and repackaging it, so now Google aims to build a social-networking business by using that rich user data that Facebook has gathered.

Facebook claims that Google is violating Facebook’s terms of service when it uses Facebook member data in that way. “We are concerned that Google may be improperly using data they have scraped about Facebook users,” the spokesman says. A Google spokeswoman reached last night said Facebook’s allegation about Google improperly using data was a new one and the company needed time to consider a response.

The clash between Google and Facebook represents one of the biggest battles of the Internet Age. Basically, the companies are vying to see who will grab the lion’s share of online advertising.

Facebook has 600 million members and gathers information on who those people are, who their friends are, and what they like. That data let Facebook sell targeted advertising. It also makes Facebook a huge rival to Google.

Last month, Google CEO and cofounder Larry Page sent out a memo telling everyone at Google that social networking was a top priority for Google—so much so that 25 percent of every Googler’s bonus this year will be based on how well Google does in social.

It’s hard to say whether Google will ever be able to crack Facebook’s grip on social networking. But after this sorry, clumsy episode, Facebook no longer seems so invincible. In fact, it almost seems a little afraid.

Study: Asia-Pacific pay-TV subs to hit 570M by 2020

The number of pay-TV subscribers in the Asia-Pacific region, estimated to be 367 million at the end of 2010, will reach 486 million by 2015 and climb to 570 million by 2020, according to a report by Media Partners Asia. The report said the region would generate $78 billion in pay-TV revenue by 2020, contingent on investments in content, distribution and technology.

The pay-TV market in Asia, accounting for 48 percent of TV homes currently, will continue to see strong gains in the years ahead, according to Media Partners Asia—generating revenues of $78 billion by 2020—contingent upon investments being made in content, distribution and new technology.

While these investments will benefit consumers, they will come at a high cost for channels and platforms, resulting in strained profit margins on services in India, Japan, Korea and Malaysia. "These trends will prevail over the medium term due to competitive intensity, well meaning but counter-productive regulation and industry fragmentation," said Vivek Couto, executive director of MPA. "Having said that, we already see operating leverage improving in a number of markets. Future growth also hinges on continued improvement in ground-level execution, talent and regulation, especially in India, China and Southeast Asia. Our research shows that the growth of broadband represents more of an opportunity than a threat for pay-TV companies; the key cross-sector competitive dynamic in most markets remains fierce competition from free TV. There is a bright future for pay-TV in Asia Pacific but it belongs to companies willing to invest and innovate, positioning themselves as consumer businesses.”

The MPA report, Asia Pacific Pay-TV & Broadband Markets 2011, indicates that 367 million homes were subscribing to pay TV in the region at the end of of 2010, reflecting a 48-percent penetration. MPA estimates this will reach 486 million in 2015, 57 percent of TV homes, and 570 million in 2020, 62 percent of TV homes.


Digitization continues on pace, with the number of digital pay-TV subscriber homes reaching 148 million in 2010. The report sees this rising to 362 million by 2015 and 483 million by 2020, led by China and India, plus full digital conversion in Japan and Korea. Digital pay-TV penetration is expected to rise from 20 percent in 2010 to 42 percent in 2015 and 52 percent in 2020.


The region's HD base was up to 12.4 million in 2010, on track to increase to 45 million by 2015 and 81 million by 2020. Excluding China and India, HD penetration of digital pay-TV subs is forecast to double from 30 percent to 60 percent by 2020.


Pay-TV revenues gained 14 percent in 2010 to $38 billion, led by ARPU growth in more developed markets and sub gains in emerging territories, combined with a rebounding ad market. Pay-TV advertising, which was up just 4 percent in 2009, saw a 15-percent jump in 2010 to reach $8 billion, 25 percent of the total TV ad pie. Sub revenues rose to $30 billion, a 14-percent hike. By 2015, MPA forecasts Asia-Pac pay-TV revenues will reach $60 billion, rising to $78 billion in 2020.


MPA notes in particular the tremendous gains expected for the Indian market. The country will become the world's largest DTH pay market by end 2012, and will top China as the largest market for pay-TV advertising after 2017. Couto commented, "India remains Asia’s largest pay-TV market opportunity in which revenue, cost and capital expenditures are growing at an alarming rate due to various dynamics, including macro growth, competition and digitization. Encouragingly, revenue growth is trending at optimum levels due to a strong economy, a buoyant advertising market and the rapid growth of DTH. Yet, such is the extent of competition, cost and fragmentation that profit margins remain low, even for market leaders. We expect margins and value chain economics will improve in the long term, through digitization of cable networks, rising subscriber scale, improved cost control and strong advertising growth. Pricing power for pay-TV services will still be modest however, as ARPU growth will remain under pressure due to competitive and regulatory dynamics.

Google revenue climbs 27% for first quarter

Google posted a 27% rise in revenue to $8.6 billion for the first quarter from the year-earlier period, building on its traditional search ad services and boosted by newer efforts in display and mobile advertising. Among the more notable results was a doubling in revenue at Google's YouTube unit and 50% growth in ad requests from iOS and Android-powered mobile devices.

Google revenues reached $8.58 billion dollars in the first three months of 2011, representing 27 percent growth compared to the same period last year.

The company attributed the revenue increase to a range of sources, placing emphasis on the continued success and growth of its core search ad offering, as well as its emerging businesses through channels such as display and mobile.

The results "demonstrate the value of search and search ads to our users and customers, as well as the extraordinary potential of areas like display and mobile," Google's CFO Patrick Pichette said during an investor call today.

On a year-over-year basis, revenues garnered from Google's owned and operated sites - such as its search properties and video site YouTube - grew 32 percent during Q1. Revenues from its network of partner sites grew slightly slower, meanwhile, at 19 percent.

Revenues from outside of the U.S. totaled $4.57 billion, representing 53 percent of total revenues for the first quarter of 2011, compared with 52 percent in the fourth quarter of 2010 and 53 percent in the first quarter of 2010. Contributions from its U.K. business declined, year-over-year, representing 11 percent of revenues in the first quarter of 2011, compared to 13 percent in the first quarter of 2010.

During the earnings call, Google's executives frequently referenced its continued investment and belief in its emerging areas of business, particularly around display, video, and mobile advertising.

According to the VP of advertising, Susan Wojcicki, the company is pleased with the progress its display business is making, thanks to increased interest in products such as its ad exchange and YouTube. The volume of transactions running through the exchange has tripled in the last year, she said, adding that two-thirds of media purchases are now made via real-time bids.

YouTube, meanwhile, doubled its revenues year-over-year, and ad requests from iOS and Android mobile devices have grown 50 percent in the past four months, Wojcicki said.

In the search space, meanwhile, Wojcicki emphasized that the company continues to see opportunity for substantial growth. It's currently concentrating its efforts on serving "the perfect ad for every query," she said, highlighting its newer ad formats like "Mediads," which enables entertainment advertisers to embed movie trailers directly within search results pages.

Google's pledge to hire 6,000 staffers by December also appears to be on track, thanks to the 1,900 "Nooglers" (new Googlers) it's hired since January.

"We feel this is a good time to invest in staff," said Jeff Huber, the company's VP of commerce and local. "We're hiring great people to invest in the future of the company, and over half the new staff we hired this quarter will be working on YouTube, mobile, Chrome, and commerce and local."

Top 50 Fortune 500's Tested On Twitter Effectiveness

To determine how Fortune 500 companies are using Twitter to interact with customers, digital agency Big Picture went undercover as an ordinary consumer posing questions to brands via their Twitter accounts.

The experiment involved Web Media Publishing social media strategist Sarah McFather tweeting straightforward customer service inquiries tailored to a company's product or service.

For example, asking AT&T when the next iPhone was coming out, asking GE for energy-saving suggestions, or Bank of America about whether the bank should be notified of a customer's international travel so their credit card will not get denied.

The idea was not to see whether corporate Twitter hands could answer tough questions, but to find out if they would engage in a conversation at all, according to the agency's report.

The results? HP, UPS, Wells Fargo and GM stood out as top-performing brands, according to five best practices that IQ gleaned from the study: clearly labeling the purpose of a Twitter account; clearly identifying who is replying to a question; keeping the tone light and friendly; making sure you respond; and responding quickly.

Of the 50 companies, Big Picture did not send tweets to 16 because the agency couldn't find a Twitter account, couldn't find an account that seemed credible, or the Twitter accounts it did find were too specific in their topics. IBM, for instance, has multiple, narrowly focused Twitter accounts, but not a single broad category for customer service. Big Picture noted that the @IBM Twitter account is password-protected and has just two followers.

Of the remaining 34 companies, 23 responded to McFather's tweets. Among the 11 that didn't: Boeing, Exxon Mobile, Home Depot, Walgreens and Wal-Mart. The fastest to reply were GM, UPS and Best Buy -- getting back in 2,3 and 4 minutes, respectively. (Best Buy has previously gained recognition for its Twelpforce customer service page on Twitter.) These companies also quickly redirected messages sent to the incorrect accounts for customer service.

From the results of the research Big Picture warn that waiting a couple of days to answer a tweet, especially from a disgruntled customer, could mean losing that customer. It pointed to software tools from vendors such as Radian6 and Lithium that can automatically notify a company when a negative tweet comes in. "Not listening or providing no positive response can be risky and downright lethal to a brand," according to the agency. Then again, some brands don't even have Twitter accounts.

The study found most Twitter responses had a friendly tone, but some were more personalized than others. Still others made it clear that an individual was writing the message, but on behalf of the company.

In that hybrid style was this response from Wells Fargo: "Hi George here from @Ask_WellsFargo. Yes pls call our support team at (800) 869-3557 & inform them. Follow/msg us if u have ?s ^GM"

"Simply varying the tone or degree of personalization in a response can change the brand impression completely," said McFather. Web Media Publishing also cited Wells Fargo rival Bank of America as one of the best brands at clearly labeling Twitter pages designated for customer service to avoid confusion among multiple accounts.

At least some of the brands covered in the study, including UPS and Wells Fargo, are also Web Media Publishing clients. Even if the agency didn't give these brands any advance notice of its Twitter test, its relationship with the companies should be taken into account in considering the findings.

Cable news video streams sent surging from Bin Laden story

From Sunday night, when word of the killing of Osama bin Laden broke, to 2 p.m. Monday, MSNBC.com served up 17 million online video streams, marking the third-biggest day ever for the network's site. CNN's online portal also was a magnet: From Sunday evening to 1 p.m. Monday, CNN.com had 88 million global page views, a 217% gain over the prior four-week average for the same time period.

The weekend's big news also, predictably, made for a good news day at some of American's cable news networks. Between the time when the Bin Laden story first broke yesterday evening and 2PM today, msnbc.com says it saw more than 17 million online video streams, making it the third highest video day for the network to date (the Earthquake in Japan was the network's highest video day ever). Though MSNBC has not released specific page-view data, the network said that for the Royal Wedding, msnbc.com saw over 18 million video streams and over 200 million pageviews plus views of wedding-related slideshow photos. The network says that its site is set to surpass those numbers today.

For its part, CNN reports that between Sunday evening and 1PM today, its website saw 88 million global page views - which marked a 217% gain over the prior 4-week average for the same time period (10 PM-1PM, Sunday to Monday). CNN.com is also reporting 13.8 million global video starts, which is a 725% gain over the previous 4-week average.


More broadly, according to Net traffic management company Akamai, by noon today Bin Laden-related media traffic had peaked around midnight with 4.1 million related page views per minute. Kafka points out, though, that while 4.1 million views per minute might seem like a lot, that doesn't even make Akamai's top ten list (which, it seems, is reserved mainly for soccer-related posts).

Facebook Sued For Publishing Minor's Data When They Hit Like

A potential class action lawsuit against Facebook was filed in a federal court in New York on Monday. The suit says the social network violated New York Civil Rights Law by displaying advertisements featuring the "names or likenesses" of minors without asking for parental permission. The ads in question can display the names and images of users who click the "like" button associated with that ad. The suit seeks damages from any money the network may have made by displaying the names and likenesses of minors.

Facebook Inc., the world’s most popular social-networking site, was sued for not getting parents’ permission before displaying that minors “like” the products of its advertisers.

The lawsuit seeks class-action status on behalf of Facebook users in New York state under the age of 18 who had “their names or likenesses used on a Facebook feed or in an advertisement sold by Facebook Inc. without the consent of their parent or guardian.” The suit was filed in federal court in Brooklyn yesterday.

Facebook began offering “social ads,” which display the names and likenesses of users’ Facebook friends who click on the ads’ “like” button, in November 2007, according to the complaint. The names or likenesses are also displayed to friends when a user RSVPs for an advertised event, according to the complaint. The endorsements also show up on Facebook friends’ home-page feeds.

“Users can prevent their endorsements from being shared with their friends by limiting who can see their posts through their privacy settings,” according to the complaint. “There is, however, no mechanism in place by which a user can prevent their name and likeness from appearing on a Facebook page if they have ‘liked’ it.”

The suit was filed by Justin Nastro, a minor in Brooklyn, through his father, Frank Nastro. Facebook doesn’t seek parents’ permission for the minor users’ endorsements, according to the complaint.

The suit invokes the New York Civil Rights Law, which prevents using a person’s picture for advertising purposes without that person’s permission. The law allows suits for damages. The Nastros’ suit seeks revenue Facebook derived from the unauthorized commercial use of the names and images.

“We have not received the complaint so I’m unable to comment at this time,” Andrew Noyes, a Facebook spokesman, said in an e-mail yesterday.

The case is Nastro v. Facebook Inc., 11-cv-2128, U.S. District Court, Eastern District of New York (Brooklyn).