Are the new domains a good idea? Tell us what you think.

ICANN is to start accepting applications for new gTLDs on January 12, 2012. The application period will run until April. They’re expected to roll out late next year.

The IAB, however, is calling on ICANN to withdraw this plan, saying it will cause “incalculable financial damage to brand owners, including the hundreds of media brands in its membership.”

The plan would allow brands to apply for domains that end in their name. Like “.webpronews” or “.pepsi” and so on. However, it would also open the door for cyber squatting, according to the IAB, as well as include what the organization calls “exorbitant fees for web publishers and brand marketers.”

The plan, the IAB says, would “come at an extremely high cost to publishers and advertisers, and would also offer ‘cyber squatters’ an opportunity to harm a brand’s integrity and/or profit greatly from their bad-faith domain registrations.”

IAB President and CEO Randall Rothenberg said, “ICANN’s potentially momentous change seems to have been made in a top-down star chamber. There appears to have been no economic impact research, no full and open stakeholder discussions, and little concern for the delicate balance of the Internet ecosystem. This could be disastrous for the media brand owners we represent and the brand owners with which they work. We hope that ICANN will reconsider both this ill-considered decision and the process by which it was reached.”

IAB – Interactive Advertising BureauThe IAB today called on ICANN to withdraw its controversial new domain-naming plan. Why their plan could be disastrous to media brand owners: http://ow.ly/63vMs 4 hours ago · 3 likes · 0 comments

The IAB’s words follow a similar campaign from the Association of National Advertisers (ANA). Earlier this month, ANA President and CEO Robert Liodice published a letter to ICANN President Rod Beckstrom outlining the organization’s concerns. In the letter, he says the plan is economically unsupportable, and likely to cause irreparable harm and damage.”

The ANA is made up up over 400 companies, which represent over 10,000 brands.

“At the same time, the Program contravenes the legal rights of brand owners and jeopardizes the safety of consumers,” the letter continued. “By introducing confusion into the marketplace and increasing the likelihood of cybersquatting and other malicious conduct, the Program diminishes the power of trademarks to serve as strong, accurate and reliable symbols of source and quality in the marketplace. Brand confusion, dilution, and other abuse also poses risks of cyber predator harms, consumer privacy violations, identity theft, and cyber security breaches. The decision to go forward with the Program also clearly violates sound public policy and constitutes a breach of ICANN’s own Code of Conduct and its undertakings with the United States Department of Commerce as most recently embodied in the Affirmation of Commitments.”

You can read it in its entirety here. Its a 9-page document.

Are these concerns overblown?

Sean Callahan at BtoB quotes Forrester Research analyst Jeff Ernst as saying, “It is too early to tell how big the malicious threat is. $185,000 is a lot of money to spend for a cybersquatter compared to a $10 dot-com domain name at GoDaddy.”

Beckstrom responded to Liodice’s letter, saying, “The June 2011 decision to proceed with the program followed six years of inclusive policy development and implementation planning,” and “One clear directive of the consensus policy advice on which the program is built is that TLDs should not infringe the existing legal rights of others. The objection process and other safeguards eliminate the need for ‘defensive’ gTLD applications because, where an infringement of legal rights can be established using these processes, an application will not be approved.”

Liodice responded to the response, saying, “We are not surprised by ICANN’s response although disappointed that ICANN chose to defend its process and deny any doubt as to consensus. Rather, ICANN needs to respond to the real concern from the brand owner community. There is no question that this Program will increase brand owners’ costs by billions of dollars. We should not be debating if 40 or 45 comment periods were held; instead, ICANN should be justifying its economic analysis regarding the Program against the staggering costs to brands. ANA welcomes further discussions and an opportunity for further economic study to quantify the need for more TLDs and what it will mean for industry and other stakeholders, such as the public interest community who will face the same brand dilution concerns.”

ANA’s General Counsel Doug Wood of Reed Smith LLP added, “Now is not the time for either side to ‘dig in its heels’ much less defend the process, especially in a depressed economy. ANA has raised real concerns regarding economic losses, brand dilution and resultant privacy / cyber-security harms. In light of our shared goals of a safe and stable global Internet, ICANN should return to the negotiating table and work with all concerned parties, including the ANA and its members, to resolve brand owners’ legitimate concerns in a manner consistent with ICANN’s consensus obligations.”

What do you think? Do you have concerns over ICANN’s plan or are these organizations overreacting? Share your thoughts.

Those surveyed project they will spend 17% of their total online display advertising budget on DVA in the next 12 months.

Other key findings of the study include:

*Advertisers are finding that their audiences respond better to DVA, with consumers showing a higher engagement rate with online video.

*DVA is more trackable and targetable and DVA production is less expensive, making it more cost efficient.

*Marketers will shift TV ad dollars to digital video based on the belief it will deliver better ROI; agencies and television decision makers will shift ad dollars in an attempt to follow their target audiences.

*Among the different available DVA formats (pre-roll, in-banner, expandable banner, mobile video, rich media overlay and post-roll), agencies primarily use pre-roll while marketers are not committed to any specific format. Most respondents believe the appropriate length is 15 seconds.

“There was strong consensus that demand for digital video advertising was strengthening,” according to Randy Cohen, President of Advertiser Perceptions.

“It was described best by a senior agency buyer who stated that ‘Digital video is becoming an ever-more common way that our target is consuming what was traditionally broadcast content – and our target is spending more time online, and video is another way to reach and engage the target.’”

“The Internet has transformed consumers’ lives and how they experience entertainment, information and brands,” said Randall Rothenberg, President & CEO, IAB.

“Marketers have embraced digital media because that’s where they can engage with their consumers. This vibrant, innovative industry is creating jobs and contributing to the growth of the U.S. economy.”

The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising.

“Advertisers are shifting more of their brand messaging online, accounting for this welcome surge in a difficult economy,” said David Silverman, a partner at PwC.

“This trend reflects the accelerating shift in consumer behavior towards the Internet and away from traditional media.”
 

"With the strongest first half on record, 2010 has so far indicated that Internet advertising is back, and better than ever," says PwC Assurance partner  David Silverman. "While the recession clearly affected short term growth in 2009, with double digit growth in both search and display during the first six month of 2010, the long term prospects continue to be strong."

"Consumers’ appetite for immersive online experiences is limitless as technological innovation and creativity give rise to new forms of entertainment and information in the digital age," says IAB President and CEO  Randall Rothenberg. "This report highlights marketers’ ongoing adoption of interactive media to build brands—and that’s only going to continue."

Display-related advertising (including banners, rich media, digital video and sponsorships) totaled over $4.4 billion in the first  half of the year. That’s up 16% from the same period in 2009.

Digital video reached its highest half-year performance ever, up 31% from 2009. Search advertising accounted for the largest percentage of overall interactive spend at 47 %. It accounted for  $5.7 billion for the period, up 11.6% from 2009.

"Interactive advertising revenue is on a strong upward trajectory," adds Sherrill Mane, SVP, Industry Services, IAB. "Nearly all types of ad formats are showing positive movement and marketers across all advertising categories, most notably consumer packaged goods and pharmaceuticals, are increasing their investment in digital media."

This is on top of all of the organic search marketing and social media marketing companies are participating in. 

"The year-over-year growth we are seeing reflects marketers’ confidence in the value and effectiveness of interactive advertising," said Randall Rothenberg, President and CEO of the IAB. "The Internet, together with explosive technological innovation in devices and platforms, has transformed consumers’ lives, giving them access to entertainment and information however, whenever, and wherever they want it. That’s why the vibrant interactive advertising and marketing industry lends major fuel to the U.S. economy."

"We are seeing continued signs of an improved economy and interactive advertising market," said David Silverman, PwC Assurance partner. "The media industry —like the economy as a whole—saw tremendous challenges this past year, and uncertainty about the recovery remains.  However, entering 2010 with such strong Q1 revenues is a sign of the health and vitality of online media, and of marketers’ continuing investment in interactive as a cornerstone of their advertising campaigns."

The record Q1 revenue comes after a record Q4, which saw $6.3 Billion in U.S. online ad revenue.

As Facebook continues its conquest of the web, expect it to play a bigger role in online advertising. Recent comScore numbers found that Facebook served the greatest number of impressions for display ads in the first quarter.

The fourth quarter of 2009 hit a record quarterly high of $6.3 billion, a 2.6 percent increase year-over-year and a 14 percent increase over the third quarter of 2009.

Search and display advertising continue to lead with the largest percentage of overall interactive advertising spend. Search revenues accounted for 47 percent of the total, amounting to nearly $10.7 billion for 2009, up slightly from 2008.

Display advertising totaled nearly $8 billion in 2009, showing an increase of 4 percent from 2008. One category of display advertising, digital video, continues to experience strong growth, with an almost 39 percent increase from 2008 to 2009.

These figures represent the significant share shift taking place from traditional media to digital. Based on data from PwC from 2005 to 2009 in five key U.S. ad-supported media (television, radio, newspapers, consumers magazines and Internet), the Internet’s share of combined ad revenue grew from 8 percent to 17 percent.

"The record $6.3 billion spent on Internet advertising in the fourth quarter of 2009, while certainly aided by seasonal demand, is a strong indication that the worst of the economic impact on Internet advertising is over and that the seeds of growth have been planted," said David Silverman, PwC Assurance partner.

The IAB says the rules unfairly and unconstitutionally impose penalties on online media for practices in which offline media have engaged for decades. In an open letter to FTC Chairman Jon Leibowitz, Randall Rothenberg, the President and CEO of the IAB, called the FTC’s distinction between offline media and online media, "constitutionally dubious."

"What concerns us the most in these revisions is that the Internet, the cheapest, most widely accessible communications medium ever invented, would have less freedom than other media," he said. "These revisions are punitive to the online world and unfairly distinquish between the same speech, based on the medium in which it is delivered. The practices have long been afforded strong First Amendment protections in traditional media outlets, but the Commission is saying that the same speech deserves fewer Constitutional protections online. I urge the Commission to retract the current set of Guides and to commence a fair and open process in order to develop a roadmap by which responsible online actors can engage with consumers and continue to provide the invaluable content and services that have so transformed people’s lives."

Rothenberg’s letter can be read here in its entirety. The FTC’s guidelines are set to go into effect at the beginning of December.

WebProNews attended a keynote at the BlogWorld Expo this week, which dealt with the FTC’s forthcoming regulations. Among the speakers were Ted Murphy, CEO of the controversial IZEA, the company known for PayPerPost and sponsored tweeting, Wendy Piersall of Sparkplugging.com, Jennifer Leggio, a blogger for ZDNet and Lisa Rotkin, an attorney from LA. Interestingly, about 60% of people in the room were for sponsored tweets, with very few indicating that they were against it.

Rotkin says the guidelines clarify the definition of endorsement, and that the FTC believes it has to be authenticated. She says that the blogger is as much liable as the advertiser, although recent comments from the FTC indicate that they are more concerned with the advertisers. She notes that bloggers would have to disclose relationships, but points out that there’s a gray area in how to disclose.

There are also gray areas in what is actually considered to be a sponsored post. In the session, it was said that there are 8 forms:

1. Access
2. Incentive
3. Thank you
4. Product demo
5. Advertorial
6. Paid Reviews
7. Junket
8. Payola

Rotkin says that sponsored posts aren’t right for everyone, but in some cases they are appropriate. However, she believes that bloggers aren’t looking at the long term.

Piersall says that people are able to disclose very well, and there are consequences if they do it wrong. She notes that she has no control over people’s perceptions, whether she is being sponsored or not.

Murphy, who was wearing a shirt that said "I heart the FTC" said his company has been under a lot of attack because they monetize people.

Leggio says being a popular social media/blogger person is different than being a celebrity. She says sponsored blogging doesn’t help relationships. "Do you want a spokesmodel or a thought leader?" she asked.

The character limit of Twitter is a subject that is often brought up in the FTC regulations discussion. How do you disclose on Twitter? Jeremiah Owyang, who moderated the session, doesn’t think a hashtag like #ad is enough. Murphy thinks having "tools for disclosure" is the only way. It’s unclear what these tools are exactly.

WebProNews reporter Abby Johnson contributed to this report from BlogWorld.

Do you think paid tweeting is a good idea? Share your thoughts.

The IAB defines an auto-play ad as a video ad or a video ad linked with video content that initiates "play" with out a user interaction or without a user activity starting the video. The guidelines now:

- Require companies that have obtained certification against the IAB guidelines to disclose the presence of auto-play ads and their parameters, such as frequency settings, site location, initiation environment (for example, upon first arrival on a home page) and the type of video ads involved.

- Don’t require web sites to disclose the presence of auto-play if users have a reasonable expectation that they are entering a video environment.

"The IAB’s measurement efforts over the past seven years have been focused on ensuring the continued high level of accountability the industry expects from interactive advertising,” said Jeremy Fain, vice president of Industry Services at the IAB. “Digital video advertising is growing exponentially and the transparency this update brings will enable that growth to continue.”

"Auto-play content and ads are a material part of the ecosystem and the IAB and the MRC want the marketplace to be clear on how they are used," said George Ivie, Executive Director and CEO of the MRC. "This update will allow buyers to make informed decisions on how their digital video ad impressions are being presented."

The IAB’s updated guidelines will go into effect for all certification audits starting in January. The guidelines can be viewed here.

Related Articles:

> IAB Releases Ad Unit Guidelines Update

> IAB Releases New Guidelines for Email Monetization

> IAB Announces Guidelines for In-Game Ad Standards

The numbers are still significantly down from the same period last year, but any increase is a good sign of things to come. There has been a 5.4% decline from last year.

"The Internet has transformed the consumer experience of media, providing marketers with unprecedented opportunities to engage with their customers," said Randall Rothenberg, President and CEO of the IAB. "The advertising sector overall has been hard hit by the economy, but digital media has been a bright spot within the larger economic downturn as it is capturing an ever-increasing piece of marketers’ advertising spend."

"While all segments of the media industry have experienced declines, online advertising remains resilient and is once again showing signs of growth," said David Silverman, a partner at PricewaterhouseCoopers LLP.

The information from the IAB/PWC is considered the most accurate measurement of interactive ad revenue, the IAB says, because its compiled directly from info supplied by companies selling advertising on the web. The IAB releases a full report twice a year to reflect half-year periods. It will be interesting to see how the second half of the year plays out in its entirety.

Related Articles:

> Online Advertising is Having a Big Year

> Online Ad Revenue Tops $10 Billion

> IAB Releases Ad Unit Guidelines Update

"By bringing agencies into the process of developing standard ad units, we have taken a step towards improving the creative output and branding potential for interactive media," says Randall Rothenberg, President and CEO of the IAB. "Our next order of business is to drive towards adoption of revised standards that we believe will spur increased investment in interactive advertising—we’ve already proven that there is no medium more accountable—now we have to bring all of its capabilities together to tell great stories to consumers—that’s what advertising is all about."

"Being a part of this process gave voice to the creative challenges that agencies faced with the existing standards, ad units, and technologies, and I believe we’ve found a solid way forward in overcoming those challenges," said Jim Russell, Partner, EVP, Director of Digital Strategy, McKinney. "Our goal was to simplify the existing list and I think we’ve developed a long-term strategy for doing this on behalf of the industry."

The working group created by the combination of creative agencies, media agencies, and publishers is called the Reimagining Interactive Advertising Task Force. The group has updated the criteria for standard ad units. It did so by looking at industry-wide impression count reports, ad unit availability, agency-side effectiveness reviews, and creative preferences. Two recommendations they made are:

- In order to be considered a standard, an ad unit must be commonly bought and offered throughout the marketplace; only seven of the eighteen ad units currently on the list meet the new criteria.

- Ad units will not be removed from the standard list in 2009, but must meet the criteria by the end of 2010

The whole IAB Ad Unit Guidelines update can be found here. Next year, the Task Force will release the first list of ad units.

Related Articles:

> Marketing Best Practices for Long Form Video

> 7 Behavioral Targeting Privacy Principles

> IAB Announces Guidelines for In-Game Ad Standards

> IAB Releases Social Advertising Best Practices

> IAB Rolls Out Click Measurement Guidelines

> IAB Releases Definitions for Social Media Ad Metrics

> IAB Releases Video Ad Guidelines