Posted March 30, 2007 12:53 pm by with 3 comments

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We have some news and then a big ‘ole mess to bring to your attention.

First, the news. AOL has announced that it’s unit would manage advertising sold on the new online video site being built by NBC and News Corp.

Ok, now the mess.

  1. Google owns 5% of AOL, yet AOL is involved in what might be Google’s biggest video competitor.
  2. Will now exclude the management of video campaigns outside of this new venture? I’m sure Lightningcast will still want to work with video sites other than this new venture.
  3. What happened to News Corp’s Fox Interactive Media? They just acquired Strategic Data Corp to provide ads to MySpace, why didn’t they use the same outfit for the new video site?

Headaches, headaches!

  • Jake

    I read about this in the WSJ today, but they didn’t mention the “mess” which you reported. Very interested and tangled web.

    I am assuming that the two companies wanted a 3rd Party to do the ads, so that neither side got an advantage. Another possibility is that Strategic Data Corp. just can’t handle the load.

    Advertising on the web is still in its young phase. According to Shelly Palmer’s article on the coming web inversion, there is just no way for a large company to spend billions of dollars on web advertising.

    The infrastructure just isn’t there yet.

    – Jake

  • The stake that Google has in AOL is going to be a serious issue, and frankly I am shocked this deal went down like this. Google just invested $1.6 billion in it’s YouTube purchase and now a company that it owns a sizable stake in is essentially facilitating the advertising of the potential arch-rival of that investment. This is a major conflict of interest!

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