The fine print: Brookings study on Google-DoubleClick deal funded by Microsoft

The fine print: Brookings study on Google-DoubleClick deal funded by Microsoft

Summary: I missed the fine print when I first checked out the 51-page AEI-Brookings Joint Center for Regulatory Studies paper on the Google-DoubleClick deal: This is yet another piece of research funded by Microsoft (and, in this case, AT&T).

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TOPICS: Google, Microsoft
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I missed the fine print when I first checked out the 51-page AEI-Brookings Joint Center for Regulatory Studies paper on the Google-DoubleClick deal: This is yet another piece of research funded by Microsoft (and, in this case, AT&T).

The fine print: Brookings study on Google-Doubleclick deal funded by MicrosoftThe paper found that a Google-DoubleClick merger, if allowed, might create potential antitrust concerns.

Some industry observers, like PaidContent (which noted the Microsoft backing of the paper), pointed out what its authors viewed as flaws in AEI-Brookings' arguments. PaidContent notes:

"The one big-red-flag in this (Brookings') argument: the contention that search-based ads are substitutable by contextual-based advertising which in turn can be substituted by graphic/displays advertising, as market prices change. Not convinced that’s true: all three serve different functions, some common-sense analysis of ad buyer’s intentions would say."

But analyst Henry Blodget, on his Internet Outsider blog (which notes clearly the Microsoft-funded element of the study), sees Google's -- not Microsoft's/Brookings'-- claim as suspect:

"Google's argument, that 'paid search' and 'display' are two different businesses, is bogus. Why? In part because Google itself sells search and display exactly the same way (PPC). In part because some 'display' ads look just like paid search ads. In part because the whole premise of AdSense for Content is that web users won't have to bother "searching" to find the ads--they'll appear next to what the users are already interested in. In part because Google's closest competitor, misfiring Yahoo, treats all web advertising as a single business. In part because search and display ads sometimes appear on the same pages. And mainly because, in the eyes of almost everyone but Google, it's all just web advertising."

Microsoft ended up spending its $6 billion DoubleClick allowance on aQuantive. If Google isn't allowed to buy DoubleClick because of antitrust concerns, it will be interesting to see who, if anyone, snaps up the company.

(Pennsylvania Ave. Image by absolutwade. CC 2.0)

Topics: Google, Microsoft

About

Mary Jo has covered the tech industry for 30 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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3 comments
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  • One thing about Microsoft

    ... once they find something that works for them, they do it in volume.

    (Reminds me of the Mercedes Lackey admonition: "Never piss off an engineer. They'll keep trying things until one works, then produce it in volume.")
    Yagotta B. Kidding
  • RE: The fine print: Brookings study on Google-DoubleClick deal funded by Microsoft

    Hi Mary Jo,

    You may not have even seen what I wrote to you yesterday. I didn't realize the 75 word limitation until last night.

    All I really have to say is "what a shame" this technology industry has evolved into. Two of the largest copyright infringing companies in the world, with two of the most arrogant and hypocritical regimes in corporate history, continue to waste taxpayers' money while accumulating more billions of dollars for their five senior executives.

    Won't anyone contribute to this Google "debate" other than the most notorious monopolistic empire of our lifetime?

    Aren't there any research companies who fund their own analysis, so as to at least pretend they might not be biased?

    I don't think the Brookings study even comes close to the absolute NONSENSE published by the CCIA recently about the "fair use" industries(and funded quietly by Google), but can anyone really believe this new study when Microsoft is paying the bill?

    We're totally out of control in this industry. It's as simple as that!

    George P. Riddick, III
    Chairman/CEO
    Imageline, Inc.

    griddick@imageline2.com
    gpaine
  • RE: The fine print: Brookings study on Google-DoubleClick deal funded by Microsoft

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