09 August 2010

California Campaign Watchdog Eyes new Internet Rules

Mercury News


SACRAMENTO, Calif.—Politicians' tweets and status updates should be held to the same standards as paid advertising that voters see on television, hear on radio or find in their mailboxes, California's campaign watchdog agency says in a report being released Monday.

The Fair Political Practices Commission is considering how to regulate new forms of political activity such as appeals on a voter's Facebook page or in a text message.

It's become necessary as politicians in California and elsewhere announce their candidacies and major campaign policies through Twitter, YouTube and a host of social networking sites, said FPPC Chairman Dan Schnur.

He said California's 36-year-old Political Reform Act needs rewriting to keep up with the times.

"Our goal here is to meet the new challenges of 21st Century technology," Schnur said. "There's no way that the authors of the act could have anticipated that these of types of communicating a campaign message would ever exist."

The report, compiled by a commission subcommittee, outlines possible hurdles to regulating online content, such as how to include full disclosure of who is behind a message in a 140-character tweet or a text.

Any changes the commission makes to state law should give regulators the flexibility to respond to swiftly evolving technologies, the report says.

The commission will consider the report at its Aug. 12 meeting. If the five-member commission orders its staff to propose regulations or legal changes it could be months before they take effect, potentially pushing new rules past this political season.

Campaigns would face the same disclosure rules they do now, such as saying who is behind an ad and who paid for it, but for the first time they would apply to communications on the Internet and other forums.

The subcommittee's recommendations draw a line between paid political activity and unpaid, grassroots volunteer efforts. Political commentary by individuals unconnected to a campaign would not be affected. Nor would sending or forwarding e-mails, linking to websites or creating independent websites.

"People tweeting about someone is typically not something you would regulate," said Barbara O'Connor, professor emeritus of communications and the former director of the Institute for the Study of Politics and Media at California State University, Sacramento. "When it becomes an ad, it's a different story. When it becomes an ad it really is a replacement for a 30-second spot for a new generation."

The recommendations include requiring tweets and texts to link to a website that includes the full disclosures, although some people feel the disclosure should be in the text itself no matter how brief, O'Connor said. She testified before the subcommittee but hadn't seen its report.

California Republican Party Vice Chairman Jon Fleischman, who writes the conservative FlashReport blog, told the subcommittee that requiring even one character in a tweet be used for disclosure would be a burden on free speech, according to the report.

Bloggers who accept payment to present their opinion in favor of or against a candidate but do not disclose their ties to a campaign are becoming increasingly common in California, but the report does not recommend regulating them—for now. The subcommittee urged bloggers to voluntarily disclose on their websites if they are being paid.

If that doesn't work, it said regulators or lawmakers may need to step in.

Like California's current regulations, federal campaign watchdogs regulate only paid political advertising, according to the National Conference of State Legislatures. Other states also are just beginning to consider whether their disclosure laws are sufficient to cover modern communications.

07 August 2010

Twitter Launches 'Who to Follow' Feature

Information Week

 
"Suggestions for You" is based on algorithms built by the site's user relevance team to help users find others with similar interests.

Twitter has started rolling out a feature that helps people find others on the site with similar interests.

The "Suggestions for You" feature, introduced Friday, is based on algorithms built by the site's user relevance team. The suggestions are based on several factors, most notably on the people you follow and the people they follow.
People can access the feature within the "Find People" area of the site. However, Twitter has also added a "Who to follow" section on the right side of people's homepage. The area lists people or organizations a user might be interested it, and provides the option of either following the suggestion or hiding it.

Twitter has also started showing recommendations to similar users when a person views another account's profile.

All the new features are available for developers. The company said it would be launching an application programming interface, so third parties can provide the suggestion features in desktop, mobile and Web applications too.

Twitter's new features resemble Facebook's "Friend Suggestions," which analyzes people's social networks to recommend others they can "friend."

Helping people continually expand their social networks is helpful for users, while also building a better platform for advertisers to meet larger numbers of people with similar interests. In separate studies released this week, Gartner and Deloitte found that Facebook and Twitter are increasingly emerging as important shopping tools for retailers and shoppers.

Gartner says sellers can tailor their online offerings to influence purchases, while Deloitte predicted that mobile phones and social networking platforms will have an increased influence in the upcoming back-to-school shopping season.

Deloitte found that nearly 30% of the respondents in its survey said social networking would likely play a major in their shopping decisions. On the other hand, Gartner said identifying and then targeting specific "influencers" in social networks can help drive sales.

Social Media Sucks up 23% of Online Time

Computer World

 
Sorry, e-mail. You've just taken a back seat to both social networks and and online games.

Social networks had already surpassed e-mail use among American Internet users. But according to a Nielsen Co. survey released this week, online gaming is now also more popular that e-mail.

According to the Nielsen survey, Americans today are spending nearly a quarter of their online time posting comments, pictures and video on social networking sites like Facebook and Twitter, making it the most popular online activity among Americans.

Online gaming is the second most popular online activity, accounting for 10% of online use, while e-mail ranks third at 8.3%. In a survey completed in June, 2009, e-mail was the second most popular online activity, accounting for 11.5% of Inernet activity.

"Despite the almost unlimited nature of what you can do on the Web, 40% of U.S. online time is spent on just three activities -- social networking, playing games and e-mailing -- leaving a whole lot of other sectors fighting for a declining share of the online pie," said Nielsen analyst Dave Martin in a statement.

Social networking saw a 43% uptick in usage from June 2009 to this past June -- from 15.8% to 22.7%.

Late last month, Facebook CEO Mark Zuckerberg announced that the site had snagged its 500 millionth user, cresting another major corporate milestone. In May, Twitter hit a milestone of its own as its users posted nearly 2 billion tweets during the month.

Some recent studies found that some people acknowledge being addicted to sites like Facebook and Twitter.

A study released by Retrevo Inc. in March showed that 48% of online users say they update Facebook or Twitter during the night or as soon as they wake up. And the survey by the consumer electronics shopping and review site found that 32% of respondents see no problem with interrupting a meal to read or send an online message.

And The Oxygen Media Insights Group, a creator of television channels and Web sites for women, released a report last month showing that a growing number of women admit to being addicted to social media.

In the latest Nielsen study, users spend 4.4% of online time viewing portals, making it the fourth most popular destination category, and 4% instant messaging. The share of both portal and instant messaging use declined significantly from 2009, Nielsen said.

03 August 2010

Newsweek Editor Jon Meacham to Exit After Sale

The Wall Street Journal

Newsweek editor Jon Meacham is planning to announce Monday that he will resign from the magazine after its expected sale to audio equipment magnate Sidney Harman, according to a person familiar with the matter.

Mr. Meacham took over as editor of Washington Post Co.-owned publication in October 2006.

His resignation ends a 15-year career at Newsweek that began in 1995 when he joined Newsweek as a writer. He became national affairs editor soon after that and was named managing editor in November of 1998.

Mr. Harman's bid was attractive to Post Co. because it assured a higher degree of continuity than the other bidders were willing to offer, according to people familiar with the situation. However, the departure of Mr. Meacham, 41 years old, is bound to fundamentally transform the magazine.

His influence has been more pronounced in the last year as Newsweek shifted away from newsgathering to more opinion and analysis. Many of the cover stories, which he regularly writes, reflect his interest in politics and religion.

02 August 2010

CBS, Comcast Sign 10-Year Contract to Carry TV Shows

Bloomberg

 
CBS Corp., owner of the most-watched U.S. broadcast network, signed a 10-year agreement allowing Comcast Corp. to carry programming from its television stations.

The so-called retransmission consent deal expires in 2020, New York-based CBS said today in a statement. The contract also provides Comcast customers with Showtime Networks, the new Smithsonian channel, expanded distribution of CBS College Sports and more on-demand access to CBS and Showtime online and on TV.

CBS Chief Executive Officer Leslie Moonves, the first broadcast network owner to seek retransmission fees to add to advertising revenue, said the deal boosts the future prospects for such fees and gives long-term stability for the Showtime pay-TV channel. CBS and Comcast’s agreement offers flexibility for making money from shows and movies across new media, including putting programs online for paying cable customers.

“There’s a great deal of flexibility because God knows the world’s going to look very different in 3 years, no less 10 years,” Moonves said in an interview. “There are benchmarks in some of the new-media terms that depend on how the world is going at that point.”

CBS and Philadelphia-based Comcast, the largest U.S. cable company, were able to strike a deal without the disruption in TV service that came during other similar talks this year. The negotiations were wrapped up a year and a half before the expiration of CBS’s prior contract with Comcast, and Showtime’s agreement was up “shortly,” Moonves said.

Good-Faith Talks


Comcast last month pledged to U.S. regulators that it would negotiate in good faith with TV-station owners after its planned takeover of General Electric Co.’s NBC Universal.

“We’re in a marketplace where Comcast is going to be our rival as the owner of NBC, but as a cable carrier there was totally good faith in their negotiations,” Moonves said. “They lived up to their word.”

CBS will likely receive 50 cents a month per subscriber from Comcast starting in 2012, making the contract worth about $75 million that year, estimates Anthony DiClemente, an analyst with Barclays Capital in New York. The fee will steadily rise to more than $1 per subscriber by 2020, he said in a report.

“It’s helpful that it’s a longer term deal because it adds to the predictability of the retransmission consent revenue stream,” DiClemente, who recommends holding the shares, said in an interview. “CBS was able to negotiate pretty healthy escalators in the contract.”

Annual Target


Financial terms weren’t disclosed. CBS has said it’s aiming for $250 million a year in total retransmission fees by 2012, a goal CBS Chief Financial Officer Joseph Ianniello called “conservative” on a February conference call.

“It’s certainly in line with that goal, and that’s all I’m going to say,” Moonves said.

The $250 million goal is calculated based on monthly fees of about 50 cents per subscriber, Ianniello explained at a June analyst conference.

CBS rose 52 cents, or 3.5 percent, to $15.30 at 4:02 p.m. in New York Stock Exchange composite trading. The shares have gained 8.9 percent this year. Comcast climbed 1 cent to $19.48 in Nasdaq Stock Market trading.

CBS plans to report second-quarter earnings after U.S. markets close tomorrow.

The Rise Of Real-Time Bidding Is The Biggest Online Advertising Story Of 2010

San Francisco Chronicle

AdMeld, a New York City based ad inventory optimizer, just closed on a $15 million round of venture funding, in the latest sign that the real-time bidding (RTB) market for display advertising is on fire.

Last month, Google paid a reported $70 million for demand-side platform Invite Media. And just a few weeks ago, brand safety startup AdSafe, which will increasingly work with RTB platforms, raised $7.5 million.

The rise of RTB is the biggest story of 2010 in online advertising, and has been written about extensively in ad industry publications. But people outside of advertising don't seem to know anything about it.

Here's the basic gist:

    * Sites across the web track your browsing behavior via cookies and sell basic data about you. The Wall Street Journal has a fairly hysterical article on this today that is attracting a lot of attention, but there's no fire here: this is anonymized data, used to serve you ads. It means you're more likely to see ads for things you actually care about, and it keeps the Internet free. Good times.

    * Web publishers offer up display inventory to the RTB market through services like AdMeld's; rather than signing up for a fixed CPM, they sell each individual ad impression to the highest bidder, based on whom that individual ad is being served to.

    * Advertisers purchase these impressions directly, or increasingly through demand-side platforms like Invite, MediaMath, or Appnexus. They run algorithms that know who they are looking to advertise to and how much they are willing to pay, and automatically purchase the best ads in real time. The slogan, rapidly becoming a cliche, to describe this is: "buying an audience instead of buying inventory."

    * That said, the context of search enginge optimization still matters -- brands don't want their ads served next to objectionable content, no matter how well the audience fits. Brand safety companies like AdSafe keep an eye on where publishers' ads are going.

The upshot of all this is that each ad impression is worth much more. AdMeld CEO Michael Barrett says ads sold through RTB generate 2-3 times as much revenue for his customers on average, and up to 10 times as much in some cases.

The RTB market will be worth around $1 billion this year, Michael tells us, still only a small fraction of display advertising, but given the rapid growth and obvious upside, we asked if he thought RTB would completely replace the old model of ad networks.

He gave about the most straightforward answer we've ever received to a question like that: "Yes, actually. in the fairly near future.