Microsoft, AOL, Yahoo, strike ad alliance
The alliance, announced on Tuesday, allows each of the companies to sell each other's unsold premium advertising inventory -- known as display ads -- by early next year. Display units are big splashy units that appear on Web pages and attract marketers interested in branding their products or services. Typically, these ads command higher rates. Rik van der Kooi, corporate vice president of the Microsoft Advertising Business Group characterized the partnership in a statement as a "rising tide that lifts all boats." "The spirit of the deal is important and we support it," said Nick Beil, president of the VivaKi Nerve Center, part of the advertising holding firm Publicis Groupe SA Beil said the alliance was attractive because it broadens the potential reach of brand advertisers looking for premium inventory. While the companies are striking a partnership, they still actively competing with each other for both advertiser spending and publisher partners, as well as maintain their own set of controls. Yahoo, AOL and Microsoft executives said they are not expecting any issues from the Department of Justice, which could potentially frown upon the partnership because it could reduce competition or effect ad pricing. "We're not reducing competition in any way, shape or form," said van der Kooi during a news call. "As a result of transparency, the competition is only going to increase. (We) don't expect any issues on that side." Both Facebook and Google Inc are expected to increase their share of online display advertising in the United States in 2011 by 9.3 percent and 16.3 percent respectively, according to estimates from research firm eMarketer. Meanwhile, AOL, Microsoft and Yahoo are forecast to lose share, with Facebook expected to surpass Yahoo for the first time this year. "Other players in the industry are welcome to join us. This is not in response to anybody in particular," van der Kooi added.
Microsoft, AOL, Yahoo, strike ad alliance
Microsoft, AOL, Yahoo, strike ad alliance
cat 2Google offers support to Android firms in lawsuits !
Schmidt, wrapping up a three-city Asian tour in Taipei, also threw an olive branch to China, with whom Google fell out over hacking and censorship disputes, saying the company "wanted to serve China's citizens within the limits the government allowed."
"We tell our partners, including the ones here in Taiwan, we will support them. For example we have been supporting HTC in its dispute with Apple because we think that the Apple thing is not correct," Schmidt told reporters during his first visit to Taipei.
The support takes the form of information sharing, industry expertise and access to Google's patents for licensing and legal purposes, Schmidt said.
Samsung Electronics Co, the world's biggest maker of mobile devices using Android, and Taiwanese smartphone maker HTC Corp, are both involved in patent disputes with Apple Inc. Some analysts see the disputes as Apple's way of attacking the Android system.
Apple co-founder Steve Jobs was quoted as saying in his authorized biography that he wanted to "destroy" Android, which has become the most popular smartphone platform.
Schmidt's visit also comes as Asian Android vendors are preparing to release their latest models based on Microsoft's Windows platform, seeking to diversify and reduce the risk of being depending too heavily on Google.
"Android hardware companies and supply chain are mostly from Taiwan. The main purpose of Schmidt's trip for this time should be to gain more support and closer collaboration with the Taiwanese here," said Concord Securities analyst Ming Chi Kuo.
"Taiwanese vendors have been users of Windows operating system in the past, especially the handset vendors, so Google has to come here to get more support for its applications in the tablets and, possibly, personal computers in the future," Kuo said.
An executive of one Taiwanese company who met Schmidt on Wednesday said he raised concerns over the patent disputes surrounding Android and Schmidt acknowledged the issue .
The executive did not want to be identified because the meeting was confidential.
The previous day, Schmidt, in his second visit to Korea, met executives from handset manufacturers Samsung and LG Electronics, in a move widely seen as reassuring his alliances with handset manufacturers.
Google's $12.5 billion acquisition of Motorola Mobility Holdings, announced in August, raised concerns it may become a key rival of Android licensees.
Schmidt also visited Beijing during his trip. Google closed its Chinese Google.cn service last year after a high-profile fallout with Beijing over censorship and began re-directing all traffic to its Hong Kong server.
In June this year, Google said a hacking attack on its Gmail email service may have come from China, drawing a sharp rebuke from Beijing.