BoomTown » search

While Microsoft Is Talking to Publishers, Paying Up to "Rent" Content for Bing to Thwart Google Is Unlikely

Kara Swisher — Mon, 23 Nov 2009 08:55:29 +0000

While it might be a dream of publishers–hard hit by the digital tsunami and blaming Google for the crisis–Microsoft is not likely to fork over the big bucks they’d need for exclusive indexing of their content.

“Microsoft isn’t the monopoly guy anymore,” joked one source close to ongoing talks between Microsoft and publishers, especially News Corp. (NWS) and Associated Press. “So, it’s not going to be the bank for publishers.”

While a spate of reports has Microsoft (MSFT) execs girding the globe offering gobs of cash to content companies to block Google (GOOG) and favor its Bing search service, sources close to the situation caution that it is extremely unlikely that the software giant would pay giant sums for that pricey privilege, which many inside the company think will not help it gain much search share.

“While there is a lot of mutual interest, it’s doubtful Microsoft is going to pay to ‘rent’ a corpus of content that it does not own,” said one source close to the situation. “The economics are not there for anyone.”

Nonetheless, that has not stopped AP and News Corp. from aggressive public agitating recently about how their content has been treated online, accusing Google of a wide range of crimes against them and threatening to “de-index” their content from the search giant.

For example, News Corp. CEO Rupert Murdoch–who has been on what seems like a televised campaign against the search giant–accused Google of pilfering stories from his publishing properties.

Presumably, by yanking Google’s access to them and offering them to Microsoft, balance will be restored in The Force.

Except, not so fast, since such a deal would end up costing Microsoft a fortune, which is why several sources said its execs don’t seem to be keen on doing that without getting a lot in return.

The swirl of chatter about it, these sources said, is coming from publishers–who initiated the very early-stage talks–who are keen on playing Microsoft and Google against each other in hopes the warring tech titans will loosen their fat wallets to battle each other.

News Corp., for instance, has been looking for ways to replace the three-year, $900 million (or less) Google/MySpace search deal that expires next year. The publisher has been talking to Microsoft about some sort of exclusivity since this summer, but News Corp. executives also say they’re happy to work with Google if Google is willing to pay up. But what would either company really be buying?

Another source used YouTube as an example of Google getting a mass of videos, when it paid $1.65 billion in 2006 for the online video company.

“That made sense, since Google got all that content to use,” said the source. “But it is hard to see publishers getting the advertising economics and revenue they want from Microsoft for lending their content out, even exclusively.”

Still a third source noted that the only way such a deal could be envisioned by Microsoft is if a majority of publishers was able to band together to block Google from indexing their sites.

“If it was everyone, that might become interesting,” said the source. “But even that has issues, since Microsoft is not interested in having exclusive news for a temporary period of time by overpaying for it.”

Added the source, noting how much money Microsoft has lost in its online efforts so far:

“It’s essentially a marketing expense, and there are a lot better ways to spend that money to win market share than giving it to publishers.”

(Full disclosure: News Corp. owns Dow Jones, which owns this site.)

Please see this disclosure related to me and Google.

Google Search Stories–Including Batman!–Or Are They Anti-Bing Commercials in Disguise?

Kara Swisher — Sun, 22 Nov 2009 05:41:49 +0000

It’s well known that Google doesn’t do much in the way of marketing around its search service.

While you will catch advertising for the Chrome browser or for Android smartphones on the Web, given Google’s huge 70 percent market share in search, it hardly needs to attract users.

So, then, what is one to make of a series of new videos, which look suspiciously like commercials, that Google (GOOG) launched late last week on its blog and posted on a new channel on YouTube?

Called “Search Stories,” there are a half-dozen of the short videos, some more adorkable than others, which star the main search box.

One thing they have in common is that they have the look and feel of a marketing campaign, with the tag line “Search on.”

They also stress a variety of Google products, such as mapping, video, price comparisons, email and more.

One imagines what pre-Batman Bruce Wayne would look for, complete with ominous music, including search terms such as “coping with loss,” “flexible kevlar” and “gotham city crime statistics.”

Another video, called “Newbie,” has a grandmother searching on “keeping in touch with grandkids” and–in a clever dig at the MySpace and Facebook social networking services–“what is myfacebook,” which gets corrected by Google to “what is facebook.”

Could it be that the $100 million marketing push Microsoft (MSFT) launched for its Bing search service, which seems to be slowly gaining share, is starting to get on the nerves of those Spocks in Silicon Valley?

Not that Google would admit this, instead simply saying it was feeling all warm and fuzzy and so decided to make some kids-let’s-put-on-a-show videos.

Wrote Robert Wong of Google Creative Lab in a blog post, in part:

Because while we’re proud of the innovations we’re making in search, we’re proudest of the things people use search to accomplish. In other words, the best search results don’t show up on a webpage–they show up in somebody’s life.

So in that spirit, we made a bunch of videos. There’s one about grandma dipping her toe into technology. One about friends taking a Kerouac inspired road trip. And yes, there’s even one about Bruce Wayne.

Judge for yourself–here they all are:

Parisian Love

Mad to Live

Batman

Newbie

Potholes

High School

Please see this disclosure related to me and Google.

MSN Head Greg Nelson Moves to MicroHoo Integration Role (Yahoo Picks Morrissey)

Kara Swisher — Thu, 19 Nov 2009 19:03:37 +0000

Greg Nelson (pictured here), who has had the thankless job of running MSN for Microsoft, has left that position and been given the even more thankless task of running the integration of the complex search and online advertising partnership struck by the software giant and Yahoo.

Microsoft (MSFT) sent out an internal email to staff about the move for the GM of MSN’s Global Media Group, which has already taken place.

MSN U.S. head Scott Moore is now reporting directly to MSN Corporate VP Erik Jorgensen. So will Brett Wayn, who has been working under Nelson on international coordination and who has taken over MSN’s international business on an interim basis.

Nelson’s counterpart at Yahoo (YHOO), according to sources, will be Mark Morrissey (pictured here), who is currently SVP of Products at the Internet giant.

The pair will have their hands full in what will ultimately be a two-year effort, sources estimate, to try to improve their competitive edge against Google (GOOG) in the search arena.

BoomTown’s title for the relationship: A Couple of White Geek Guys Sitting Around Arguing!

The role includes coordinating a massive shift of engineering talent from Yahoo to Microsoft, making sure ad systems are copacetic and most of all, smoothing over what is likely to be a number of bumps in the partnership.

To help make the frustrations less frustrating, there is a $50 million annual payment to Yahoo by Microsoft for three years, for unspecified “transition and implementation costs.”

At least 400 Yahoo employees will be hired by Microsoft, which will also provide funds for retention packages to keep 150 more Yahoos motivated during the transition.

The “Definitive Agreement” between the Silicon Valley company and the Redmond, Wash.-based Microsoft, which had been slated to be signed by Oct. 27, 2009, is about to be completed.

Then, as soon as regulatory approvals are in place, it will be showtime for Nelson and Morrissey.

Yahoo Hires Amber Allman as New D.C. Director of Public Affairs

Kara Swisher — Thu, 19 Nov 2009 05:18:59 +0000

Earlier today, BoomTown reported that Yahoo was poised to name a few new top execs at its Silicon Valley HQ.

But the company has also hired a new director of public affairs in the nation’s capital.

After I queried the company, Yahoo (YHOO) confirmed that it has tapped Amber Allman, a vice president at 463 Communications, for the job. She has extensive tech experience.

“We are very pleased that she is coming on board,” said Nina Blackwell, senior director of global public affairs, who will be Allman’s boss. “She will be a very valuable member of the team.

Yahoo’s last public affairs rep in D.C. was the most excellent Tracy Schmaler, who left Yahoo earlier this year.

At Yahoo, she worked on everything from human rights issues in China to the failed takeover attempt by Microsoft (MSFT) to Yahoo’s also-botched effort to do a search and advertising deal with search giant Google (GOOG).

Ironically, Schmaler is now deputy director, Office of Public Affairs, at the Justice Department, which is currently scrutinizing Yahoo’s search and ad partnership with Microsoft.

Ah, the revolving doors of Washington, D.C.!

Yahoo's Bartz Shuffles the Exec Deck, Filling Audience and Other Top Slot; Is the Board Next for a Makeover?

Kara Swisher — Wed, 18 Nov 2009 22:00:16 +0000

Yahoo CEO Carol Bartz is making the most substantive changes in her exec ranks since she did a massive restructuring of its staff in late February, according to sources close to the situation.

“She is continuing to clean the place up,” said one top exec about the moves, which are likely to be announced internally tomorrow.

Among the shifts in management will be filling the slot left by the departure of North American Audience head Jeff Dossett in May.

UPDATE: Sources say Yahoo’s head of mobile, David Ko, will get the job of top Audience exec, although it is not clear if he will have the same portfolio has former media heads at Yahoo.

Since Dossett left, his job has been split between Jimmy Pitaro, who runs Vertical Audience Experiences, and Tim Mayer, who is in charge of Search & Social Applications. They both currently report to U.S. EVP Hilary Schneider.

The job of Audience head is a key role, given that Yahoo’s powerful media properties are among its most valuable assets. In recent months, Yahoo has made some major changes in the way it creates its juggernaut News property.

Also to be filled is the job being done by Corporate Partnership SVP Jim Schinella, who, as BoomTown previously reported, is set to leave at the end of the year.

I could not determine who will take Schinella’s job, inside or out.

Interestingly, Yahoo has yet to name an international head.

Sources said the company had filled the position, using a headhunter, but the London-based media exec candidate backed out at the last minute. That meant Yahoo had to restart its search.

There might also be other top exec changes, all part of Bartz’s consolidation of power at Yahoo. She has named a spate of new top execs from outside, but has also kept some from the regime of former CEO and co-founder Jerry Yang.

These staffing moves have come even as a stream of execs continued to depart the Silicon Valley Internet giant, including, most recently, Mike Walrath, who was SVP of advertising strategy. Walrath had led Right Media, the online ad exchange Yahoo bought for $680 million in 2007.

Walrath was widely expected to leave Yahoo in July, at the completion of his earnout from the acquisition, sources said, so the move was more sudden than expected internally.

Sources noted that Bartz moved Walrath’s departure forward in order to announce a new strategy for Right Media focused on premium publishers and to dump those ad networks and publishers of lesser ilk.

Whether this will stop the competitive onslaught in the ad exchange space is an open question given that Google has entered the fray significantly and that Facebook is widely expected to bolster its efforts.

Lastly, several sources said that there are also likely to be more changes on Yahoo’s board, which has seen the departure of two members recently.

In September, Maggie Wilderotter said she would leave the board by year’s end. And former Yahoo nemesis and investor Carl Icahn left the board in late October.

Whether Yahoo will replace them or keep its current size of 10 directors is not clear.

Also possible, several sources said, would be Bartz taking the chairman title, which is currently held by Roy Bostock. Bostock, along with Yang, played a key role in its botched takeover battle with Microsoft (MSFT).

Bartz finally successfully struck a sweeping search and advertising partnership with the software giant this summer, which is moving closer to being launched.

Exclusive: Yahoo and Microsoft Poised to Finally Sign Definitive Search and Ad Agreement

Kara Swisher — Wed, 18 Nov 2009 08:01:27 +0000

Yahoo and Microsoft are poised to finally sign the definitive agreement that will govern the complex and far-reaching search and online advertising partnership they struck in late July, said sources close to the situation.

If all goes well, the various Microsoft and Yahoo execs–who have been ferreted away over the last weeks, busy dotting all the i’s and crossing all the t’s in the massive document–could even turn in their deal homework to their bosses for signature by the end of the week.

Yahoo (YHOO) officials declined to comment, while Microsoft (MSFT) has not gotten back to BoomTown as yet.

In any case, getting the definitive agreement in place is critical to making the high-profile MicroHoo deal a reality and, of course, getting the anti-Google (GOOG) party started.

So when the pair blew through a deadline to complete it in late October, there were eyebrows raised all over Wall Street and Silicon Valley.

When Yahoo filed an 8-K with the Securities and Exchange Commission in August, it noted that the “Definitive Agreement” between the Silicon Valley Internet company and the Redmond, Wash., software giant needs to be sketched out by Oct. 27, 2009.

But it is a monster document, which is why MicroHoo did not complete it in time. After that whiff, Yahoo said as much in another filing with the SEC:

“The Letter Agreement specified that the parties would execute definitive agreements by October 27, 2009, but given the complex nature of the transaction, there remain some details to be finalized.”

Added Microsoft similarly:

“We have made good progress in finalizing the definitive agreements. Given the complex nature of this transaction there remain some issues that need some additional clarity and definitive details.”

Nonetheless, both companies have consistently said that they would be able to close this deal by early 2010.

Yahoo and Microsoft had already done a pretty hefty binding-agreement letter (here is a picture of Yahoo’s CEO Carol Bartz and Microsoft CEO Steve Ballmer holding it, in fact).

Also key: Getting approval for the deal from regulators in Washington, D.C., which, sources said, also seems to be on track.

With little opposition, Yahoo and Microsoft policy types have been chipping away on regulatory issues with federal regulators in Washington.

And, several sources said, those government approvals are now nearing completion at the Justice Department, even though the Federal Trade Commission might still ask for more assurances on privacy issues related to online advertising and consumer data.

International regulatory approval is another story, especially in Europe, which could further delay the implementation of the partnership, since it is unlikely the pair would move forward without clearance globally.

When that is done, the real game begins, as MicroHoo faces its the much more critical Tim Gunn acid test for the deal:

Making it work.

The Missing Final Chapter of Auletta's Google Book: 25 Media Maxims

Kara Swisher — Mon, 16 Nov 2009 08:01:48 +0000

Last week, New Yorker writer Ken Auletta launched his new book on the search giant: “Googled: The End of the World as We Know It.”

But one final chapter was actually cut from the book, which Auletta posted this past weekend on his Web site.

Auletta emailed BoomTown, explaining that he killed it because it was “not organic to the book’s narrative, and because I feared it [would] muddy the books purpose, casting it as a How-To book.”

The chapter contains 25 media maxims or things Auletta learned from covering the media and Google (GOOG), kicking off by recounting Apple (AAPL) CEO Steve Jobs’s famous “Stay Hungry, Stay Foolish” commencement speech at Stanford University in 2005 (see video below).

Included among Auletta’s maxims: “Passion Is Required,” “Vision Is Required” and “Don’t Ignore the Human Factor.”

Here’s the chapter in its entirety:

And here is a video interview I did with Auletta at his book party in San Francisco last week, followed by the Jobs’s speech:

[ See post to watch video ]

Please see this disclosure related to me and Google.

Flying the Digitally Friendly Skies: Gogo, Google and the Facebook PR Guy in 17D

Kara Swisher — Fri, 13 Nov 2009 22:11:20 +0000

So, BoomTown–who cannot be unplugged from the matrix for very long without breaking into a cold sweat–was pretty excited to have free Wi-Fi on my Virgin America flight to Washington, D.C., early this morning.

The service from Gogo Inflight Internet is free since earlier this week until Jan. 15, courtesy of Google (GOOG), on Virgin, as well as at 47 airports. It usually costs anywhere from $6 to $13.

Like the search giant, other Web companies–presumably wanting to goose usage and, more to the point, their brands–have also leaped in.

Delta has a promotion with eBay (EBAY) on several hundred planes for a week around Thanksgiving, and Yahoo (YHOO) is footing the bill for anyone using computers or smartphones in Times Square in New York for one year.

Pretty much what the government and big cable and wireless companies should be doing, but let’s not look a digital gift horse in the mouth.

So far on the flight, the Internet has been pretty solid, although video plays even slower than my Comcast (CMCSA) connection at home.

Also, electricity on the flight has been in and out; when it doesn’t work, it pretty much negates Internet use on a long flight.

But more interesting, as most who use the Web in the air seem to feel, is the ability to make a lot of online connections, including with people on the same plane.

While I was no fan of the goofy seat-to-seat connections offered on some airlines, I did get an email from a Facebook public relations guy sitting in the row behind me on the same flight asking if I wanted to meet the social networking site’s DC staff.

Without ever seeing him I now have a meeting on Monday with them, so–apparently–mission accomplished!

Please see this disclosure related to me and Google.

Is Google Scary? Not to Silicon Valley, Even at a Party for a Book About How Scary It Could Be!

Kara Swisher — Thu, 12 Nov 2009 09:21:47 +0000

While at a book party for author Ken Auletta in San Francisco last night, BoomTown took the opportunity to ask those gathered whether they were scared or not of Google and its growing power.

The Auletta book covers a lot about the search giant, but also drills in on how traditional media and advertising, as well as the government, have all become increasingly wary of Google’s hegemony over key businesses on the Web.

But as it turned out, the Silicon Valley types I queried had nothing but attaboys for Google (GOOG). Oddly enough, many mentioned how they love the food served up at the Googleplex.

Here’s the video of the interviews, with scary up-close shots, with investor–including in Google–Ron Conway, almost-not CBS (CBS) Web dude/almost investment dude Quincy Smith, online classified czar Craig Newmark, Slide CEO Max Levchin and Google PR honcho David “I love my Soylent Green” Krane (see pertinent movie video clip below):

[ See post to watch video ]

Please see this disclosure related to me and Google.

Author Ken Auletta Talks About Google and Its "Lack of Emotional Intelligence"

Kara Swisher — Thu, 12 Nov 2009 08:50:35 +0000

Guess what? Google has too many Spocks and not enough Captain Kirks.

This is one of the many interesting insights BoomTown gleaned from a video interview last night–which you can see below–with well-known New Yorker scribe Ken Auletta, who has just written a new book, “Googled: The End of the World as We Know It.”

This “lack of emotional intelligence” at the search giant, said Auletta, reminded him a lot of the subject of one of his previous books: Microsoft (MSFT).

Oh, the delicious irony!

Auletta was feted at a lovely party last night at the San Francisco house of Common Sense Media’s Jim Steyer, where a range of Google (GOOG) execs, Internet folks and fans gathered to talk about the book.

It’s all about Google, its history and, most important, its impact on the world. And how you look at the powerful search giant depends entirely on whether you are the changer or the changed, as Auletta stresses in multiple anecdotes in the book.

Traditional media, for example, have certainly been mucho irked of late about the impact of digital technologies on their businesses and have not been shy about casting blame most heapingly on Google’s Silicon Valley plate.

And government regulators are also giving the company the hairy eyeball, much as they had previously done to Microsoft.

Auletta and I talked about all of this and more in the video interview below, in which he notes that he told Googlers at a talk at their adorkable Googleplex HQ in Mountain View, Calif., yesterday that they need to focus less on being engineering brainiacs and more on trying to understand how to deal with fears of their growing power.

Here’s my interview with Auletta about this, as well as what old media needs to do to deal with all the change Google has wrought. (And you can see interviews I did with guests at the party, too).

And below that is one of the disturbing number of mash-up music videos about “Star Trek” buddies, the highly illogical Kirk and the Vulcanish Spock, the geek bromance of all time.

[ See post to watch video ]

Please see this disclosure related to me and Google.

Bing Keeps the Changes Coming–But Is It Working?

Kara Swisher — Wed, 11 Nov 2009 18:00:15 +0000

It certainly is good to see Microsoft working the innovation thing, especially in the consumer space with its Bing search service.

The ultimate goal is to gain market share for Bing, from striking deals with hotter companies like Twitter and Facebook to doing a massive advertising and marketing campaign to making constant feature upgrades.

This is one of those weeks for Bing, which started off yesterday by renaming its video properties on MSN, now integrated with search, to Bing Videos. Microsoft also rejiggered its Bing Maps.

And today, the company is rolling out more features, including integration related to diet and nutrition with fancy search service Wolfram|Alpha, an “enhanced hover preview” and full-page weather and events results to add to its niche search offerings.

But whether all this will spell significant changes in market share compared to dominant rival Google (GOOG) is still an open question, with Microsoft (MSFT) eking out solid gains since Bing launched.

Today, Hitwise figures have Bing up seven percent to 9.57 percent in October, at the expense of both Google and Yahoo (YHOO).

Money is also coming in slightly better. A recent report by IDC noted that Bing’s search revenue has gained 6.1 percent to 6.8 percent from the second-to-last quarter.

But spending on advertising, as well as these new features, is also costly.

Still, Microsoft is pressing on.

The Wolfram feature, for example, adds a nutrition quick tab when searching on food items, as well as a body-mass index tool.

Here is a video on it from Bing, which might require installation of Microsoft’s Silverlight video technology (you might also want to launch full screen to see it better):

Bing will also improve the ability of users to get quick info by hovering over a link. Frankly, this annoys me more than bad clicks, but most people will probably like seeing snapshots of the actual Web sites, a search-within-this-site box and deep links.

Perhaps the most interesting iteration of this feature will be Facebook page previews. Click on arrow below:

The weather stuff is just more, more, more bells and whistles, integrating news, events, xRank results, Twitter feeds, images, Best Match results and content from sites you trust onto one page with a prettier interface. Check it out:

There will be more to come, of course, which should–at the very least–have competitors competing better.

Accel Partners Feels Like a Billion Dollars Today…No, Really!

Kara Swisher — Mon, 09 Nov 2009 20:24:08 +0000

Who said the venture capital industry is sucking wind lately?

Well, it is–but not today, and especially, not Accel Partners, which sold two of its portfolio start-ups to large public companies for a total of $1.5 billion.

That would be the sale of AdMob to search behemoth Google (GOOG) for $750 million in stock and the acquisition of Playfish by gaming giant Electronic Arts (ERTS) for about $300 million (plus an earn-out of up to $100 million for Playfish staff).

While Accel shared the AdMob largess with Sequoia Capital and others with a stake in AdMob, which focuses on mobile advertising, and shared its social-gaming winnings from Playfish with Index Ventures, the Palo Alto, Calif.-based VC firm can surely afford to choose the pricier bottle of wine this week.

(Also, apropos of nothing, Accel Partner and Facebook board member Jim Breyer is now officially paying for the lunch he still owes me!)

Playfish had raised a total of $21 million in funding, while AdMob had pulled in about $47 million.

“I think you can imagine we are very pleased,” said Rich Wong, the Accel partner involved with AdMob, in an interview this morning. But he would not give any specifics about what Accel hauled in for its portion of the two companies.

Still, Wong said the venture market in Silicon Valley and elsewhere was definitely “stabilizing,” noting that there has been an increasing number of exits for investors via big companies scooping up strong start-ups.

“AdMob and Playfish are strong players in their respective spaces and in leading categories,” said Wong. “Their sale is a sign that this kind of innovation is important to major companies.”

And, apparently, to Accel.

Google Primer on AdMob Acquisition: We Can Believe We Ate the Whole Thing!

Kara Swisher — Mon, 09 Nov 2009 18:47:18 +0000

Google has a Web page up about today’s acquisition of AdMob for $750 million in stock, which includes the lovely image below of the differences between what the Silicon Valley companies do in the mobile advertising space.

Said Google (GOOG) on its site about the purchase:

“Mobile advertising is a rapidly growing and competitive space, and Google and AdMob are currently specializing in different areas. Though Google offers many forms of mobile advertising, its focus to date has been on mobile search ads, while AdMob’s focus has been mobile display ads and in-application ads.”

Translation: The Web search behemoth has been slower than molasses in the mobile and smart-phone ad space, sticking with boring blue text links of death, especially compared to the innovative and nimbler start-up, which is rocking the pretty ads.

So, we ate it.

Here’s the differences (click on the image to make it larger), according to Google:

Please see this disclosure related to me and Google.

Google Acquires AdMob for $750 Million in Stock (Plus the Press Release and Video With CEO)

Kara Swisher — Mon, 09 Nov 2009 17:33:49 +0000

Google has acquired AdMob for $750 million, a huge price for an innovative start-up that has pioneered online ads on mobile and now smart phones.

BoomTown visited AdMob last fall and posted about how it was likely to eventually be acquired by…Google (GOOG)!

(Google has provided a primer on the sale, which you can read about here.)

The move is a major one for Google, which has been pushing hard into the mobile advertising space as it seeks to grow its already considerable Web search business. AdMob is arguably the most innovative and fastest out of the gate in the nascent arena.

As I wrote previously about the company’s prospects:

While there are very few bright spots to look at in the start-up space in Silicon Valley these days, especially those relying on online advertising, the San Mateo, Calif.-based AdMob is at least slightly shiny.

The mobile advertising marketplace, backed by Sequoia Capital and Accel Partners, just got a big slug of funding–almost $16 million–to keep pushing to get ads on mobile phones, which has gotten a huge boost from the popularity of the iPhone.

The massive data usage by users of the popular mobile device by Apple (AAPL) has clearly turbocharged AdMob’s prospects, which were already on the rise. Compared to a year ago, the company said, the number of ads it served more than tripled the number of ads served on a monthly basis to 4.5 billion.

Obviously, the better quality and more actionable nature of ads on improved screens is the reason for the shift, which should accelerate as more smartphones like Google’s G1 and the newest Blackberry Storm from RIM (RIMM) become more popular too.

Most importantly, even now, AdMob is cash flow-positive, which is not a bad thing to be in the current econalypse. It also has a cushion of cash–AdMob had previously garnered $15 million in funding from Sequoia and Accel.

It’s not all sunshine and daisies, of course, since the ad market in general is headed for a deep slump, and new markets are not going to grow as quickly, as marketers pull back from spending.

But, when the economy turns, the mobile advertising market is clearly going to be a fast-growing arena, with big players like Google, Yahoo (YHOO), Nokia (NOK) and Microsoft (MSFT) as AdMob competitors (or potential acquirers, especially Google).

With the money it just raised, AdMob said it would be getting ready for that race, and also use it to expand internationally.

Here’s a video interview with Omar Hamoui, founder and CEO of AdMob, on all this and more, as well as a tour of company’s offices:

[ See post to watch video ]

And, here’s the press release:

Google to Acquire AdMob

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Google Inc. (NASDAQ:GOOG) today announced that it has signed a definitive agreement to acquire AdMob, a mobile display ad technology provider, for $750 million in stock. This acquisition will enhance Google’s existing expertise and technology in mobile advertising, while also giving advertisers and publishers more choice in this growing new area.

“Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time,” said Susan Wojcicki, Vice President of Product Management at Google. “AdMob is the quintessential Silicon Valley startup–generating impressive year on year revenue growth–and we’re excited to welcome this talented team to Google.”

“I think people underestimate how important ads have been to funding the development of innovative content on the Internet. Our goal all along at AdMob has been to make it possible for developers and publishers to bring their products and ideas to mobile with the same business model,” said Omar Hamoui, Founder and CEO of AdMob. “We’re proud of the progress we’ve made towards accomplishing this goal, and joining Google will only accelerate this process, ultimately leading to very real benefits for end users around the world. As publishers and developers generate more revenue from their mobile products, they will invest more, and their mobile offerings will become richer, more creative and more robust.”

The deal will help Google in its efforts to develop more effective tools for creating, serving and analyzing emerging mobile ads formats. As this ecosystem continues to grow, the company expects these new marketing media to offer significant benefits:

Advertisers will be better able to engage mobile users with AdMob’s ad formats

Publishers and developers will be able to monetize their content more effectively, which has benefits for the wider mobile ecosystem

Users will see more relevant ads and ultimately get access to more ad-supported content and applications – improving their mobile experience

“Attracting the world’s top engineering talent and people with entrepreneurial vision to Google has always been crucial to our success. AdMob’s proven track record in innovating at speed will help maintain that culture–which is why we are so excited to be working with them,” added Vic Gundotra, Vice President of Engineering at Google.

Both companies have approved the transaction, which is subject to customary closing conditions.

Please see this disclosure related to me and Google.

Clutter-Free, Twittified, Binged (and Also Apple-icious): The New MSN Homepage Debuts (Plus Screenshots and the Press Release)

Kara Swisher — Wed, 04 Nov 2009 04:15:34 +0000

The new MSN homepage debuts tonight and you would be completely correct in thinking the recipe Microsoft (MSFT) has cooked up to inform its design ethos–white, clean and hiply modern–has definite echoes of a certain longtime tech rival.

That would be Apple (AAPL), of course, with a big dollop of Twitter and Facebook tossed in, and finished off with a generous sprinkling of Microsoft’s new Bing search service.

For those who care: The MSN butterfly logo remains, although it appears to have lost a lot of weight too.

(You can view a preview of the site here.)

The launch is the first major upgrade of the MSN main page in–if you can believe it–a decade, part of an overhaul that the software giant has been doing throughout its money-losing online services division.

That has included the launch of Bing in May, which has been a success for Microsoft, adding a small amount of search market share and, more importantly, some much needed respect to its long-beleaguered consumer Web efforts.

The company’s online execs are trying to keep up the innovation momentum with the new MSN redesign and–as you can see below from the various screenshots–it is a major shift for the portal site.

Together, MSN and Windows Live have about 100 million unique monthly visitors, putting Microsoft typically third behind Google (GOOG) and Yahoo (YHOO).

The company hopes to do better with a fresher MSN, which is clearly aimed, first and foremost, at clearing up the clutter and link-heavy old MSN homepage.

MSN execs said the new main page has about half the “blue” links.

(See a video interview I also did with MSN exec Bob Visse about all of this here, along with other videos Microsoft did with its MSN staff.)

The top of the new page features a big image module, with inline video and drastically reduced topic areas–as BoomTown has previously reported–limited to news, sports, entertainment, money and lifestyle.

Under that is a more customizable news module, to which feature tabs can also be added, such as for the World Series or–prolonged sigh–Balloon Boy coverage.

On the bottom left is a much-goosed local module that resolves to beefed-up local sites, which is right next another section featuring Bing top searches.

Bing is present in every part of the site now, with Microsoft stressing it and using its structured data to improve the consumer experience.

That’s important for Bing search too, since MSN provides 45 percent of its traffic.

Communications modules are to the right, midpage and on the bottom.

Unlike AOL and Yahoo, which have added the ability to put third-party email on their homepages, only Hotmail is now available on the new MSN, although this is likely to change soon.

But perhaps the design element that will garner the most attention is the prominent placement of both Twitter and Facebook tabs in the bottom communications module, right next to one for Windows Live.

This allows users to update their status and get instant access to the status of friends and followers.

“We wanted to cut the clutter, while also giving users one convenient place to find what they need quickly,” said Scott Moore, executive producer of MSN in the U.S., its most important market, in an interview earlier today with me.

“People are overloaded with information and they wanted us to fix that, even if the service is not ours.”

The focus on Facebook and Twitter was simply due to intense user interest in the popular social networking sites.

“Facebook has popped and Twitter was really growing,” said Moore, who noted that there was the possibility of adding other third-party apps in the future.

A heavy emphasis on apps was a key strategy of Yahoo’s homepage redesign, officially launched in late July, which SVP Tapan Bhat touted at an meeting with analysts last week as having increased page views and engagement.

Advertising on the page is perhaps the most conservative part, with units that remain largely as before.

The new MSN homepage will begin rolling out now, eventually reaching about 10 percent of users by early next year. After that, it is expected to become widely available to U.S. customers and then go worldwide.

Here are screenshots of the changes to peruse (click on top three images to make them larger):

Old Homepage:

New Homepage:

Local Edition:

Twitter Section:

Facebook Section:

And here is the official Microsoft press release:

New MSN Designed to Be the Best Home Page on the Web

Fresh, new design delivers best of Bing, latest in news and entertainment, instant access to Facebook and Twitter, and customized local information in one place.

REDMOND, Wash.–Nov. 3, 2009–Microsoft Corp. today unveiled a preview of its most significant home page redesign in over a decade. The new MSN home page is designed to be the best home page on the Web, with powerful Bing search, the top news and hottest entertainment, and some of the most popular social networks–all in a fresh new look. The new home page will deliver comprehensive local information from the new MSN local information offering, MSN Local Edition, also unveiled today. Beginning today, anyone can preview the new home page at http://preview.msn.com. The new home page will begin rolling out today and become widely available to U.S. customers early next year.

Ninety percent of people surveyed find home pages such as MSN to be valuable, and they like the convenience of a comprehensive site.* Nearly 100 million people in the U.S. visit MSN every single month, and MSN added over 10 million new customers in the last year alone. However, today’s sites often fall short of top customer needs and many haven’t kept up with evolving trends. Extensive customer research highlights that people want less clutter and easier access to information and services they care about, including search services that help them make decisions easier and faster.

“Now is the time to clean up the mess on the Web–people need less clutter and less hassle to find what matters most to them,” said Erik Jorgensen, corporate vice president, Microsoft. “Microsoft is uniquely invested in search, media experiences and technical innovation. Combining these assets to deliver our new MSN home page is a tremendous win for customers and advertisers.”

The clean, new MSN home page cuts through the clutter with 50 percent fewer links than the previous home page and a simplified navigation across news, entertainment, sports, money and lifestyle. The new MSN home page also embraces the latest customer trends by deeply integrating powerful search from Bing and providing easy access to Facebook, Twitter and Windows Live services, comprehensive local information and in-line video. Sophisticated technology powers the home page to deliver personally relevant information, and improved performance satisfies people’s need for speed.

New key features of the MSN home page include these:

* Innovative search technology from Bing. Deeper Bing integration on the new home page helps people make faster and more informed decisions and easily find the information they want from anywhere on the Web. Bing is deeply integrated as the core search service throughout the home page via key areas such as shopping, travel and local, and as a way of highlighting hot topics, trends or people.

* Information and news people care about. The new home page delivers against the No. 1 customer request–simplicity and ease of use–through its fresh design and smart categorization. In-line high-quality, top news and hot entertainment from trustworthy sources such as MSNBC, FOX Sports, Hulu and Hearst, and comprehensive local information provide a compelling one-stop shop for people to use as their home base online. More in-depth local information is offered on the new MSN Local Edition, which is the only local online source that smartly combines media with Bing search and provides access to real-time community news that is grouped by ZIP code.

* Convenient ways to communicate. Simplicity drove the clean integration of popular social networks, such as Facebook, Twitter and Windows Live “What’s New,” which aggregates up to 50 Web activities, including Yelp, Flickr, Pandora and more, onto the MSN home page. People no longer have to jump from site to site to update their status, tweets or see what their friends are up to; the new home page makes it easy to view and update in-line.

“Customers told us they want the latest information from their favorite sources, their friends and the breadth of the Web–and the new MSN home page delivers via a fresh new look and new features,” Jorgensen said. “Today is an important transformation for MSN, and it’s just the beginning.”