December 2012

Election Tally: $3.1B Spent on TV Ads

Election year spending poured $3.1 billion into the broadcast television business, according to an analysis of Kantar Media's CMAG data by Marci Ryvicker, senior analyst at Wells Fargo.

About $2.9 billion was spent on local TV ads. The rest went to network and national spots. In October alone, there was $1.27 billion spent. The biggest contributor to spending was the presidential race, which contributed 41.8% of the ad dollars. Another 21.9% was spent in support of ballot initiatives. The markets that got the most political ad dollars were Los Angeles, Washington, Cleveland, Las Vegas and Denver.

Judge says “no fundamental right to use Facebook,” tosses antitrust case

U.S. District Judge Cathy Ann Bencivengo ruled that Facebook has the right to exclude users if they install a program that alters the look of its website and swaps out its ad offerings.

In a ruling issued in San Diego, Judge Bencivengo dismissed an antitrust complaint filed by Sambreel, a controversial advertising company that offers products with names like PageRage that let users tweak the look of their Facebook page. The companies got in a bitter fight earlier this year after Facebook “gated” users who had downloaded the Sambreel products — meaning the users had to remove PageRage software before they could log on to the social network. Sambreel responded with an aggressive legal and public relations campaign, arguing that Facebook broke antitrust laws.

Judge Bencivengo, however, was having none of this:
There is no fundamental right to use Facebook; users may only obtain a Facebook account upon agreement that they will comply with Facebook’s terms, which is unquestionably permissible under the antitrust laws. It follows, therefore, that Facebook is within its rights to require that its users disable certain products before using its website.

Coming in 2013 – targeted TV ads

Just like with static display ads online, we have become used to seeing targeted video ads on the web, mobiles and tablets. Now video ad targeting will come to the living room, when the UK’s two big pay-TV operators will soon start showing targeted ads to viewers in 2013. The launches could improve effectiveness of a TV advertising business that is still growing strong thanks to its mass broadcast appeal but which could wring out even more dollars by guaranteeing advertiser outlay.

Commissioner Pai: The Dude Abides.

[Commentary] Sometimes Commissioners aren’t content to just vote on the orders the Federal Communications Commission issues. Instead, they feel the need to issue their own “separate statements”, explaining, justifying, hedging, etc., etc. their votes. We read a lot of those statements – it’s an occupational hazard.

As far as we can tell, such statements usually don’t add much to the Greater Good. After all, the FCC’s decision is the FCC’s decision, and the individual musings of one or another Commissioner may be marginally interesting, but they don’t affect the decision. They often seem intended primarily to bestow kudos on Commission staff members, members of Congress, various other notables, while articulating observations that, apparently, couldn’t garner a majority of the Commission (otherwise, presumably, they would have been included in the actual order, obviating the need for a separate statement). Which brings us to a separate statement of a different stripe. The Commission voted to close up a quasi-loophole in the Telephone Consumer Protection Act, a loophole that some members of the bar (other lawyers might refer to them as “brethren” but, frankly, we’d rather not) have apparently used to justify class action suits of dubious validity. And Commissioner Ajit Pai issued a separate statement in connection with the decision. We salute Commissioner Pai’s statement and commend it to our readers’ attention. It is a model of concision and directness. There is elegance (the order “ends the legal lacuna and the courtroom arbitrage it has inspired”), reference to the actual record before the FCC, and avoidance of the obvious cliché. And then there’s the citation which references a quote from The Big Lebowski. And it’s a righteous, on-the-money quote. Separate Commissioners’ statements don’t often rely on such sources.

The Best (and Worst) of Mobile Connectivity

Some 85% of American adults now own a cell phone, and these mobile devices now play a central role in many aspects of their owners’ lives according to a new survey by the Pew Research Center’s Internet & American Life Project.

For many cell owners, their phone is an essential utility that they check frequently, keep close at all times, and would have trouble functioning without:

  • 67% of cell owners find themselves checking their phone for messages, alerts, or calls—even when they don’t notice their phone ringing or vibrating. Some 18% of cell owners say that they do this “frequently."
  • 44% of cell owners have slept with their phone next to their bed because they wanted to make sure they didn’t miss any calls, text messages, or other updates during the night.
  • 29% of cell owners describe their cell phone as “something they can’t imagine living without."

Despite this connection to their devices, most cell owners don’t worry too much (or get many complaints from their friends) about spending too much time with their phones:

  • 11% of cell owners say that they themselves sometimes worry that they are spending too much time with their phone.
  • 12% of cell owners say that people they know tell them that they are spending too much time using their phone.

Indeed, many cell owners hear complaints from friends that they don’t devote enough time to monitoring their mobile communications:

  • 39% of cell owners say that people they know have complained because they don’t respond promptly to phone calls or text messages.
  • 33% of cell owners say that people they know have complained because they don’t check their phone frequently enough.

ITU packet inspection standard raises serious privacy concerns

The United Nations telecommunications standards organization has approved a standard for deep packet inspection (DPI) that raises serious concerns about privacy, the Center for Democracy and Technology said.

That ITU-T is showing an interest in deep packet inspection suggests some governments hope for a world where even encrypted communications may not be safe from prying eyes, according to the CDT. The adoption of the standard -- officially known as "Requirements for Deep Packet Inspection in Next Generation Networks" or "Y.2770" -- happened last week during the World Telecommunication Standardization Assembly (WTSA), which is held every four years and defines what the ITU-T should focus on. The biggest concern is that the standard holds very little in reserve when it comes to privacy invasion, wrote CDT.

Search engines escape Russia’s Internet blacklist

More and more sites are getting blacklisted by Russia’s new hitlist of digital child porn and other supposedly law-breaking content. But, despite some recent examples, search engines are not supposed to be amongst the list.

Russia’s Federal Service for Supervision of Communications, Information Technology and Mass Communications (Roskomnadzor) has issued a “clarification” to say Web search, image search, news search, video search and other content cached by search engines like Google, Yandex and Bing should not be included in the recently-launched Zapret web blacklist. This is despite recent inclusion of Google image search and YouTube, which is put down to a “mistake.” Such a distinction by the Russian government is an important one at a time when Google is facing growing international challenges to its long-held operating model.

Yahoo Ordered to Pay $2.7 Billion by Mexican Court

It’s hard to say how serious this is right now, but Yahoo was ordered to pay $2.7 billion in a lawsuit related to a breach of contract and lost profits of a yellow pages listing service by Worldwide Directories and Ideas Interactivas.