Wednesday, October 24, 2007

 

Facebook Chooses Microsoft Over Google

Facebook will sell Microsoft a $240 million minority stake.

Juan Carlos Perez, IDG News Service

Wednesday, October 24, 2007 2:00 PM PDT

Facebook Inc. will sell a $240 million minority stake to Microsoft Corp., which as part of the deal will also expand the advertising services it provides to the social networking phenom, the companies said Wednesday in a statement.

The size of the ownership stake Microsoft will take during Facebook's next round of financing puts Facebook's valuation at a whopping $15 billion. Google had reportedly been courting Facebook as well.



In addition to the ownership piece, Microsoft will also extend its existing agreement to provide banner ads to Facebook in the U.S. With this deal, Microsoft will become Facebook's exclusive third-party ad platform, as well as provide Facebook ads internationally.

"This is about placing a big bet on the future of Facebook and positioning Microsoft possibly for an outright acquisition later, as well as keeping Facebook away from Google," said analyst Greg Sterling from Sterling Market Intelligence.

The Deal

During a conference call after the announcement, Owen Van Natta, Facebook's vice president of operations and Chief Revenue Officer, didn't acknowledge Google was one of the company's suitors.

He said Facebook chose Microsoft because of its reputation as one of the world's top technology providers. "We were fortunate to have a lot of folks who wanted to partner with us around advertising," he said.

Kevin Johnson, president of Microsoft's Platforms and Services Division, called the deal a "big vote of confidence" for Microsoft's advertising strategy.

However, he said advertising is just one area of convergence for the companies, though he declined to mention specifically in what other areas of technology or business the two companies will collaborate.

Facebook will likely devote the cash influx from its next financing round to bankroll the torrid growth it is expecting in the coming 12 months in usage and headcount.

"This is clearly good for Facebook, as they get a big pile of cash to expand, and Microsoft has given them the valuation they were looking for," Sterling said. "So Facebook gets a big chunk of money and a massive valuation."

With about 300 employees now, Facebook expects to have about 700 a year from now, its CEO and co-founder Mark Zuckerberg said last week at the Web 2.0 Summit.

Meanwhile, the site is growing its usage at breakneck speed, with about 250,000 new users registering every day.

Facebook's Background

Founded in 2004, it currently has about 49 million active users today, up from 12 million in December. Over half of its active members return to the site daily. Some 59 percent of its users are outside the U.S.

Earlier Wednesday, The Wall Street Journal and The New York Post reported that Facebook was in the final stages of making a decision on whether to do this deal with Microsoft or Google.

For Microsoft, which hasn't attained as strong a position in online advertising as it had hoped, and lags behind Google, landing this deal could be a major win, as long as Facebook proves to be as attractive an advertising vehicle as expected.

Microsoft and Facebook signed their original advertising deal in August 2006 and months later extended that agreement through 2011.

The Journal reported later on Wednesday that Facebook expects a profit of about $30 million this year, on revenue of $150 million.

Google and Yahoo provide ads for Facebook rival MySpace.

A "Must-Win" for Microsoft

Since News Corp. bagged MySpace in 2005 and Google bought YouTube last year, "for Microsoft, this was a must-win," said Allen Weiner, a Gartner Inc. analyst. "They needed to do whatever it took."With this deal, Microsoft sends a clear message that it is serious about its intention to be a major online advertising platform player, Weiner said.

Still, questions remain about social networking sites' full potential for advertising, since most of their content is largely unregulated and created by millions of individuals, resulting often in material that is vulgar and objectionable.

"There is some merit to those questions about social networking sites as viable advertising vehicles," Weiner said. However, these sites will probably evolve and look very differently in five years, when, in addition to their core social networking functions, they'll also likely be platforms for delivering media content to its members, Weiner said.

Facebook Advertising

Facebook plans to share more ideas for revving up its advertising business on Nov. 6, at an event in New York to which it has invited what it calls "its closest advertisers."

"As part of [the event], Facebook executives will discuss new approaches for advertising online," a Facebook spokeswoman said via e-mail. "We are not sharing any further details."

Facebook, MySpace and others are also under close scrutiny from law enforcement agencies in the U.S. and abroad because sexual predators use social-networking sites to stalk and victimize people, in particular minors.

According to Hitwise, Facebook.com was the ninth most visited site in the U.S. during the week ended October 20. Within the social networking category, Facebook.com received 15 percent of U.S. visits during that week, placing second behind leader MySpace, which got 76 percent of visits, according to Hitwise.

The Journal first reported Google's and Microsoft's pursuit of the Facebook investment a month ago.


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Monday, October 8, 2007

 

SAP agrees 4.8-billion-euro buyout of Business Objects (AFP)

Sun Oct 7, 7:02 PM ET

PARIS (AFP) - Germany's SAP, a world leader in business software, announced late Sunday that it had agreed with France's Business Objects on a buy-out worth just over 4.8 billion euros (6.8 billion dollars).

"The Business Objects board of directors has approved the tender offer agreement between the two companies and anticipates recommending the offer to its shareholders subject to fulfillment of certain regulatory requirements," said a statement on the two companies' websites.

A man speaking on a cellphone in front of the logo of software developer SAP.  Germany's SAP, a world leader in business software, announced late Sunday that it had agreed with France's Business Objects on a buy-out worth just over 4.8 billion euros (6.8 billion dollars).(AFP/File/John MacDougall)
AFP/File Photo: A man speaking on a cellphone in front of the logo of software developer SAP....

The deal involves a cash offer from SAP of 53.4 dollars (42.00 euros) per share of Business Objects, which posted a turnover of 1.3 billion dollars (886 million euros) last year.



"Together, SAP and Business Objects intend to offer high-value solutions for process- and business-oriented professionals," said the joint statement.

The deal is expected to close in the first quarter of next year, but Business Objects will operate as a stand-alone business as part of the SAP Group, the companies said.

"Business Objects customers will continue to benefit from open, broad and integrated business intelligence solution," said their statement.

"The acquisition of Business Objects is in keeping with SAP's stated strategy to double our addressable market by 2010" to reach 100,000 clients, Henning Kagermann, CEO of SAP AG, was quoted as saying.

SAP currently has around 41,200 clients and sold software licenses worth 3.1 billion euros last year.

The purchase marks a radical change of strategy for SAP, which in contrast to its US rival Oracle which spent more than 25 billion dollars on acquisitions since 2004, has instead opted more for organic growth.

SAP also bought management software producer Hyperion in March for 3.3 billion dollars.

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Sunday, October 7, 2007

 

IBM Targets SMBs With 'Express' Versions Of Rational, Tivoli Tools

By Paul McDougall
InformationWeek
Fri Oct 5, 12:00 PM ET

IBM on Friday unveiled new software tools designed to help small and mid-sized businesses compete on a more even footing with larger enterprises.

The IBM Rational Build Forge Express Edition offers a software development environment tailored for SMBs that lack a large programming staff. Among other things, the product provides a foundation for agile development processes that favor a standardized and iterative approach to application development.



IBM Rational Build Forge Express Edition will be available starting October 23rd at a price of $49,000 per server, IBM said. IBM obtained the foundation for the software when it acquired application development specialist BuildForge in 2006 for an undisclosed sum.

Another new tool introduced Friday by IBM, the Tivoli Network Manager IP Entry Edition, gives IT staffers at mid-sized businesses the ability to monitor their network performance in real time. Pricing details were not disclosed.

IBM has spent considerable efforts in launching "Express" versions of its middleware products. Rational, WebSphere, DB2, Tivoli, and even Lotus all have less expensive versions available for smaller companies to run or as evaluation software for larger corporations.

SMBs represent an important growth market for IBM, whose sales to large enterprises have been relatively flat in recent years. Researchers at AMI Partners say IT spending by SMBs will grow by 10% in 2007 -- driven by high double-digit growth in emerging markets such as Brazil, India and China.

IBM's total sales, adjusting for currency, increased 5.9% in the second quarter, while software sales rose 9.1%.

To help build out its own software developer product plans, IBM has said it plans to acquire development tools maker Telelogic. However, the proposed $745 million acquisition of the Swedish vendor is now the subject of a European antitrust investigation, EU officials said Friday. Europe's second highest court recently upheld antitrust penalties against software maker Microsoft.

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FTC Cracks Down on Health Sites' Claims

Grant Gross, IDG News Service Sat Oct 6, 8:00 PM ET

The U.S. Federal Trade Commission has filed complaints against seven online sellers of alternative hormone replacement therapy products, alleging that the Web sites made health claims for their natural progesterone creams without supporting evidence.

Six of the sellers have signed consent orders barring them from making unsubstantiated claims in the future, the FTC announced Friday. The seventh Web site did not respond to repeated efforts to contact it by the FTC staff, and its case will be heard by an administrative law judge, the agency said.

"Millions of women seek safe, effective alternatives to hormone replacement therapy," said Lydia Parnes, director of the FTC's Bureau of Consumer Protection. "These companies violated their trust by making claims they just couldn't prove."

The sellers claimed that their natural progesterone creams were effective in preventing, treating, or curing osteoporosis; were effective in preventing or reducing the risk of estrogen-induced uterine cancer; and did not increase the user's risk of developing breast cancer, or were effective in preventing or reducing the user's risk of developing breast cancer.

The FTC complaints, filed earlier this year, alleged that the sellers did not have substantiation for these claims and, in some cases, misrepresented that clinical testing proved the products were effective.



The products allegedly sold without proper health-claim substantiation included: ProBalance transdermal cream; Elation Therapy Natural Progesterone Cream; Preserve Progesterone Cream; Restored Balance progesterone cream; Serenity for Women Natural Progesterone Cream; Nature's Precise Cream; Eternal Woman Progesterone Cream.

The consent orders settle the FTC's charges against the following people and businesses:

-- Lawrence A. Jordan and Stephanie L. Jordan, doing business as Springboard and Pro Health Labs of Spring Valley, California;

-- Elation Therapy Inc. and Robert Rutledge, an officer of the company based in Marietta, Georgia;

-- Merilou Barnekow, doing business as Women's Menopause Health Center of Surfside Beach, Texas;

-- The Green Willow Tree LLC of Asheville, North Carolina, and manager Robert Burns;

-- Health Science International Inc., of Port Orange, Florida, and David Martin, an officer there;

-- Shelly Black, doing business as Progesterone Advocates Network of Trabuco Canyon, California.

Under the terms of the orders, sellers are required to have reliable scientific evidence substantiating claims about the health benefits, performance, safety and side effects of any dietary supplement drug, or health-related service. In addition, the orders prevent the sellers from misrepresenting the existence, validity or interpretations of any research.

Finally, the orders contain 20-year record-keeping provisions designed to ensure the sellers comply with their terms.

The charges against Herbs Nutrition Corp. of Torrance, California, and Syed M. Jafry, an officer there, have not been settled, and the case will be tried by an FTC administrative law judge.

The FTC is not aware of any competent and reliable scientific evidence to support claims that natural progesterone products are safe, or that they are effective in preventing osteoporosis, increasing bone density or preventing, treating, or curing cancer, heart disease or other diseases, the agency said. When evaluating health-related claims for any product, consumers should talk to their primary-care doctor or pharmacist, the FTC recommended.

The FTC staff identified the respondents through an Internet search of Web sites advertising products that claimed they were natural alternatives to hormone replacement therapy. The FTC sent warning letters to 34 Web site operators informing them that they must have reliable scientific evidence to support any health-related claims made for their products. The FTC advised the marketers to revise or delete any false, misleading or unsubstantiated claims.

Twenty-seven of the 34 Web sites modified the health claims about hormone replacement therapy after the FTC letters.


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Do eBay Ads Go Overboard? (PC World)

Juan Carlos Perez, IDG News Service Sun Oct 7, 9:00 AM ET

EBay Inc. has significantly boosted its advertising revenue since last year, but some sellers worry that the company's efforts in this area are driving potential buyers away from the online marketplace.

Last year, eBay signed deals to run ads from the Google Inc. and Yahoo Inc. networks in order to better capitalize on the massive traffic it draws to its Web sites, primarily its core eBay.com marketplace.

The strategy seems to be working: In 2007's second quarter, ended June 30, eBay's advertising revenue almost doubled compared with the same period in 2006.



The very influential Professional eBay Sellers Alliance (PESA), a group of large eBay sellers, has been watching from the sidelines with increasing concern and skepticism.

"Having those ads on the Web site we view as very negative. Encouraging people to leave eBay can never be good for the seller who is paying to be on the marketplace," said Jonathan Garriss, PESA's executive director.

While eBay has had advertising on its Web site for years, sellers generally hadn't perceived it as a major threat, for a variety of reasons.

For instance, the advertising program that the Yahoo deal replaced in May of last year was run in-house by eBay and was designed to let eBay sellers promote their products in the marketplace. In other words, the ads didn't link outside of the eBay Web sites.

Also, whenever eBay has allowed external ads in its sites, as it did in the late 1990s and early 2000's via a deal with AOL LLC, the ads weren't as precisely targeted as is possible with the current ad-matching technology from Google and Yahoo.

Now, with Google and Yahoo delivering ads that are contextually relevant to the eBay pages on which they run, eBay sellers feel that the barbarians aren't just at the gates, but inside the marketplace's walls, luring buyers away.

The deal with Yahoo made it the exclusive provider of pay-per-click (PPC) text ads and banner ads for eBay sites in the U.S., while the Google deal, signed a few months later in August 2006, is for PPC text ads in eBay sites internationally.

In the second quarter of 2007, eBay reported $76 million in advertising and "other non-transaction revenue," an increase of 96 percent from the same period in 2006. An eBay spokesman acknowledged that most of that revenue came from advertising.

Making some rough calculations, Garriss believes that eBay visitors clicked about 250 million times on the Yahoo and Google ads during the second quarter. "The biggest issue is seeing ads that compete with products already on eBay," Garriss said.

Hani Durzy, an eBay spokesman, acknowledges that the company has fielded concerns from sellers about this issue, but he argues that the worry is unwarranted.

"Our first priority is always to encourage buyers to transact on the site and click on our sellers' listings. If our sellers aren't successful, they're not paying eBay fees, and then we're not successful," Durzy said.

In an ideal world, every visitor to eBay would end up buying something in the marketplace, but research has shown visitors don't always come to buy. Often they do research or browse, he said.

Thus, eBay can potentially monetize those visits and improve those users' experience by showing them relevant, targeted ads, Durzy said.

"Our strategy is to serve ads differently based on what we think you're most likely to do, in order to ultimately give you as a buyer the best experience," he said.

An increase in buyer satisfaction ultimately benefits sellers. "Serving relevant, compelling ads in certain situations makes for a better buying experience," Durzy said.

Still, eBay is considering reactivating the in-house ad program for eBay sellers that it cancelled last year, because it recognizes that it had some value. "We're examining parts of that [program] that we can reconstitute within the context of our deal with Yahoo," he said.

What's not negotiable is the existence of external ads on eBay. "We continually test what's the best mix and how to improve our targeting so that we serve the right ads to the right people and avoid that thing which sellers legitimately fear," Durzy said.

Recently, Steve Hartman, eBay's director of on-site advertising strategy, addressed these issues in a blog posting. "We want buyers to transact on eBay," he wrote. "But we also want to offer alternatives when we believe it will improve the buying experience."

EBay won't claim that the ads have never driven a potential buyer away from the marketplace, but those situations would be exceptions, not the rule, Durzy said.

"Our initial testing period shows no significant impact to our core transaction business, which means no significant impact to our sellers' revenue, because the two are inextricably linked," Durzy said. "We feel very confident that our strategy is working."

Garriss, also CEO of Gotham City Online, an apparel store on eBay that also has its own site, isn't convinced.

"We think it hurts the sellers, while eBay benefits from the ad money," he said. "This is one of our fastest-growing concerns."


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Major Internet hubs see lesser influence (AP)

By ANICK JESDANUN, AP Internet Writer Sun Oct 7, 1:48 PM ET

NEW YORK - The recent rush by major Internet portals to buy advertising companies and extend their sales networks is a sign that the business of being a one-stop shop for information and entertainment isn't what it used to be.

Gone are the days of emphasizing ways to attract and keep visitors — the way television networks long have operated — by creating destinations with anything people might need for work, leisure or companionship.

Instead, those companies are now more aggressively trying to follow Web surfers elsewhere — and bring lucrative advertising to them.

As people increasingly turn to blogs, social-networking sites and other sources of user-generated media, Google Inc., Yahoo Inc., Microsoft Corp. and Time Warner Inc.'s AOL have spent more than $10 billion collectively this year to acquire companies and technologies that help extend their online advertising networks.

So instead of relying solely on being portals for consumers, the major companies are creating one-stop shops for advertisers, who are increasingly wanting to buy ads centrally and place them where the eyeballs are. The networks take care of feeding the ads to smaller sites.

"We're not interested in building yesterday's portal," said Ron Grant, AOL's president and chief operating officer. "Consumers are finding what they are looking for is coming from more and more fragmented places. We need a way for advertisers to take advantage of that fragmentation."



That shift is important for the major Internet businesses to grab a substantial share of the marketing dollars expected to flow at the expense of television and print.

For consumers, the development means greater freedom and a further erosion of artificial walls designed to keep visitors from leaving sites.

According to comScore Media Metrix, the U.S. audience for the four major Internet brands grew over the past year. But the total time spent at Yahoo and AOL dropped about 10 percent, while Microsoft's MSN-Windows Live services saw an 8 percent decline.

In other words, these sites are attracting more people but are keeping them for shorter durations as users find what they need elsewhere.

Google was the exception, with a 57 percent jump in total time spent, but even the company recognizes that "no individual property will have all those products and services" a user might want, said Tim Armstrong, Google's head of North American ad sales.

"The Internet is basically being built and scaling (faster) than any one property on the Internet is," Armstrong said. "Companies in the Internet space are changing their business models to have models which are consumer driven, not property driven."

That's not to say the major Internet destinations are ceding their own properties.

In a few cases, the large companies have bought wildly popular sites. Google spent about $1.76 billion last November to absorb the leading video-sharing site, YouTube. It also owns the blogging service Blogger, while Yahoo has the photo-sharing site Flickr.

They are also innovating. AOL revamped its video search site in August, while Yahoo retooled its core search engine this month to try to make it more engaging and lure back those who had defected to Google.

"Everyone still wants to be your home page. They are always going to battle for that," said Nick Nyhan, chief executive of market research firm Dynamic Logic. "But they have to think beyond that. Consumers aren't going to just take your stuff."

Google, Yahoo and AOL still make most of their ad money from sites they own and operate (Microsoft did not break down figures in its regulatory filings). Google and Yahoo even reported relative growth there in the second quarter.

Ad networks set the stage for the future and help the large Internet companies ensure they will have enough inventory to sell in the years ahead.

Ford Motor Co. can, for instance, come to Google and buy ads that run not only there but also at The New York Times' Web site and thousands of others within Google's AdSense network. Ford wouldn't have to deal with all those sites individually; third-party sites wouldn't have to expand their sales team.

Meanwhile, Google gets a cut of ad revenues — without spending a dime developing those specialty sites.

Although this concept isn't new, what is changing is the scale.

In agreeing to acquire DoubleClick Inc. for $3.1 billion, Google is looking for better ways to deliver multimedia display ads to supplement the small, text-based ads the company already does well.

The still-pending acquisition also extends Google's reach beyond AdSense to all the outside sites for which DoubleClick now distributes advertising.

Likewise, in buying Tacoda Inc., AOL not only gets Tacoda's technology for targeting ads, but also extends its reach to NBC Universal, Scripps Networks and the Times (sites can join multiple ad networks). AOL also has a network through its 2004 acquisition of Advertising.com and separately bought companies this year serving international markets and wireless devices.

Yahoo, meanwhile, paid about $650 million for the 80 percent of Right Media Inc. it did not already own and agreed to buy BlueLithium Inc. for $300 million. Microsoft bought aQuantive Inc. for $6 billion.

"It's not that networks are going to supplant these mass-market sites, but they will have less influence as networks have more," said David Hallerman, a senior analyst at the research group eMarketer, which projects U.S. online advertising spending at $44 billion in 2011, more than double the $17 billion last year.

The shift didn't happen overnight. Many factors are involved, including online hangouts like Facebook and News Corp.'s MySpace commanding more of a user's time over the past few years. Web sites big and small are making features available, through tools called widgets, for viewing directly at those sites.

Of course, the major brands would still prefer visitors going to them directly, as they wouldn't have to share ad revenues with another site.

But as audiences disperse, advertisers have become reluctant to concentrate their spending at a traditional portal.

Besides standardization, efficiency and diversity, advertisers get better targeting with networks. Say you are trying to reach Seattle natives with a propensity to fly to the remote Arctic island of Svalbard. On a portal you might find 10. On a network 100 times larger, you'd find 1,000 without changing your campaign.

There are drawbacks, though.

U.S. and European regulators are reviewing Google's proposed acquisition of DoubleClick. Critics complain Google would have too much control over online advertising and personal information collected on users.

And despite the efficiencies, consolidation could hamper flexibility, said Jason Turner, vice president for interactive at advertising agency Ignited.

"When there were four television networks, you were beholden to those four, (who could say), `Here are the rules. This is what it's going to cost and if you don't like it you're not going to get on TV,'" Turner said.

Nonetheless, ad networks are here to stay.

"Advertisers are going to need to start to use the Internet the way people always use the Internet, spreading out in hot pursuit of the things they need and want," said Jarvis Coffin, chief executive of Burst Media Corp., an independent ad network. "It's much easier to fish where the fish are."


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T-Shirt Helps Find Hotspots (PC World)

Stephen Lawson, IDG News Service Sun Oct 7, 4:00 PM ET

With at least one municipal Wi-Fi project being proposed or abandoned seemingly every day, and big carriers such as BT Group PLC turning to their subscribers' Wi-Fi routers to make Wi-Fi available, it's hard to know exactly where you can get online these days. But a T-shirt going on sale late this month could solve that problem for you and everyone around you.

The Wi-Fi Detector Shirt, which the online store ThinkGeek Inc. will sell for US$29.99, has glowing bars on the front that light up in waves when there's an IEEE 802.11b or 802.11g network in range. As with a network strength indicator on a cell phone or PC, more bars light up as the signal gets stronger. A cartoon of a classic radio tower and the simple expression "802.11" say it all for people who are looking for this kind of thing. ThinkGeek employee Ty Liotta developed the shirt, which is only available in black.



Until Power Over Ethernet (IEEE 802.3af, but you knew that) goes wireless, a glowing, network-detecting T-shirt still needs batteries. The three AAA cells for this one are concealed in a pocket sewn inside the shirt, according to ThinkGeek. When it's time to wash the shirt, you can take them out and then peel off the glowing decal, which is attached to the shirt with hook-and-loop fasteners. A ribbon cable concealed inside the shirt links the batteries to the decal, and it can go through the wash-- as long as you hang dry the shirt.

One thing the shirt can't tell is whether the network in range is open or encrypted. It also can't detect the very latest certified Wi-Fi technology, 802.11n Draft 2.0, which is several times faster than 802.11b and 802.11g networks. There aren't enough of 802.11n networks yet, explained Jennifer Kuropkat, a spokeswoman for ThinkGeek, in Fairfax, Virginia.

BT on Thursday became the latest service provider to let ordinary home broadband users share a portion of their Internet connections with the public using software from Fon Technology SL and a Wi-Fi router. The carrier hopes users of the free service will flood suburban streets all over the U.K. with wireless Internet signals. However, Wi-Fi is invisible to the naked eye.

Asked whether the Wi-Fi Detector Shirt will solve a critical problem for users, Gartner Inc. analyst Ken Dulaney said, "Probably for a very few people in the world, yes."


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Online Ads: Slowing but Still Growing

Juan Carlos Perez, IDG News Service Sun Oct 7, 7:00 PM ET

The growth in online ad spending on U.S. Web sites slowed in the first half of 2007, compared with the same period last year, but the market is still experiencing a boom, according to the Interactive Advertising Bureau (IAB).

Ad spending hit almost US$10 billion in the first half of 2007, up 26.4 percent from the same period in 2006, and featured the first ever quarterly revenue of over $5 billion, the IAB said Thursday.



"We have every reason to believe, based on torrid sequential growth quarter after quarter, and year after year, that robust growth will continue," said David Doty, an IAB senior vice president.

Growth slowed compared with last year's first half, when spending increased 37 percent over 2005's first half. However, that is mainly due to the fact that spending this year is so much higher than last year, Doty said.

"The growth is on a much larger number. Both quarters and the half year are historic highs in pure dollar amounts," Doty said. "The results are very encouraging."

In the second quarter, revenue reached almost $5.1 billion. "Advertisers understand that they need to move their dollars here [to the Internet] to reach their audiences," he said.

Once again, the search ad format was the largest one, nabbing 41 percent of the spending during the first half, followed by the display format (32 percent), which includes types like video and banners.

Regarding pricing models, performance deals, such as pay per click, accounted for 50 percent of the first half's spending, while impressions accounted for 45 percent. The rest were hybrid deals involving both pricing models.


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Interpol in rare global appeal for Web pedophile

By Mark Trevelyan Sun Oct 7, 8:10 PM ET

LONDON (Reuters) - Interpol on Monday launched an unprecedented worldwide public appeal to track down a man shown sexually abusing children in images posted on the Internet.

The man appears in around 200 photographs featuring abuse of 12 young boys, which investigators believe were taken in Vietnam and Cambodia, possibly in 2002 and 2003.

An undated handout photo of an unidentified man is issued by Interpol, October 7, 2007. Interpol have launched an unprecedented worldwide public appeal to track down a man shown sexually abusing children in images posted on the Internet. The pictures have been digitally altered to disguise the man's face with a swirly pattern, but the German federal police agency, the BKA, worked with Interpol's human trafficking team to produce identifiable images. (Interpol/Handout/Reuters)
Reuters Photo: An undated handout photo of an unidentified man is issued by Interpol, October 7, 2007....


The pictures had been digitally altered to disguise the man's face with a swirly pattern, but computer specialists at Germany's federal police agency, the BKA, worked with Interpol's human trafficking team to produce identifiable images.

The global police body said it was making the unique public appeal because, despite extensive efforts through its network of 186 member states, the man remained unknown.

"For years, images of this man sexually abusing children have been circulating on the Internet," Interpol Secretary General Ronald Noble said.

"We have tried all other means to identify and to bring him to justice, but we are now convinced that without the public's help this sexual predator could continue to rape and sexually abuse young children whose ages appear to range from six to early teens."

Photographs of the man are available on Interpol's Web site, www.interpol.int and anyone with information on him is urged to contact their local police or Interpol's human trafficking unit.

Anders Persson, a Swedish police officer seconded to the unit, told Reuters the dark-haired man in the photos was thought to be a European aged around 35-40.

He said a child abuser seeking contact with like-minded individuals on the Internet would sometimes post pictures of himself in the act of abuse as a kind of "ID card" to prove he is a genuine hard-core pedophile.

The inquiry began when the first pictures of the man were found by German police in 2004. A link to a Vietnamese hotel emerged from advertising material seen on a bedside table in some of the pictures, Persson said. But checks against passport photos of people on the hotel's guest list drew a blank.

Other photos were taken at outdoor locations in Cambodia that were recognized by police there.

Interpol runs a huge database of images of child sex abuse and uses sophisticated software to find connections between them, even analyzing tiny details like wallpaper and fabric patterns in apparently anonymous indoor settings.

Now containing more than 520,000 images submitted by 36 member states, the database has helped police identify and rescue nearly 600 victims from 31 countries to date.


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Turkish hackers target Swedish Web sites (AP)

By MALIN RISING, Associated Press Writer
STOCKHOLM, Sweden - Hackers in Turkey have attacked more than 5,000 Swedish Web sites in the past week, and at least some of the sabotage appears linked to Muslim anger over a Swedish newspaper drawing that depicted the Prophet Muhammad's head on a dog's body.

Around 1,600 Web sites hosted by server-provider Proinet and 3,800 sites hosted by another company have been targeted, Proinet spokesman Kjetil Jensen said Sunday. Jensen said hackers, operating on a Turkish network, at times replaced files on the sites with messages.

According to Swedish news agency TT, the Web site of a children's cartoon called Bamse was replaced by a message saying Islam's prophet had been insulted.

The incidents have been reported to the police.

Islamic law is generally interpreted to forbid any depiction of the prophet, even favorable, for fear it could lead to idolatry. Dogs also are considered unclean by conservative Muslims.

The Swedish newspaper Nerikes Allehanda published the drawing by artist Lars Vilks in an Aug. 19 editorial. It triggered protests from Swedish Muslim groups and formal complaints from Muslim countries, including Pakistan and Iran. An insurgent leader in Iraq, Abu Omar al-Baghdadi, put a $100,000 bounty on Vilks' head.

Similar caricatures of the prophet, first published in 2005 by a Danish newspaper and reprinted in other European newspapers, triggered furious street protests in Muslim countries.

Stefan Grinneby, head of the Swedish communication watchdog's Internet incident center Sitic, said attacks against Swedish Web sites from Turkey, a predominantly Muslim country, have increased in the past three weeks. Some contained messages alluding to the drawing.

"You would need a very large police investigation to establish the connection to the prophet drawings, but considering the increase in recent weeks it is a fair assumption to make," he said.

Vilks said recently that he has no regrets about his portrayal of Muhammad, despite receiving death threats. He said Muslims living in the West would have to get used to disrespectful drawings of their religious symbols, "because here in the West we mock everything."

He also said he may convert the dispute into a musical, with prominent roles depicting Iran's president, Sweden's prime minister and al-Qaida terrorists.


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New prototype phone gives fitness check

By HIROKO TABUCHI, Associated Press Writer Sat Oct 6, 7:17 AM ET

CHIBA, Japan - It can take your pulse, check your body fat, time your jogs and tell you if you have bad breath. It even assesses stress levels and inspires you with a pep talk. Meet your new personal trainer: your cell phone.

The prototype Wellness mobile phone from Japan's NTT DoCoMo Inc. targets users with busy lives who want a hassle-free way of keeping track of their health, according to company spokesman Noriaki Tobita.

The phone, unveiled this week at the CEATEC electronics show outside Tokyo, has an inbuilt motion sensor that detects body movement and calculates how many calories you burn.

The sensor can tell whether you're walking, running, climbing stairs, or resting, and counts the calories accordingly to tally daily totals, Tobita said.

"It's with you wherever you go, like a portable personal trainer," he said.

Like Nike Inc.'s +Nike technology, the handset also keeps track of jogs, letting users set targets and keeping track of time, distance, and calories burnt — all while listening to music through headphones.

Hold the phone with outstretched arms, and it turns into a mini body fat calculator. A sensor at the top of the phone takes your pulse from your fingertip.

Worried about bad breath? Use the phone's breathalyzer. After Tobita blew on a tiny hole on the side of the handset for about three seconds, the screen flashed, "Not too bad."

The Wellness phone, developed by NTT DoCoMo and Mitsubishi Electric Corp., also asks questions to assesses stress levels and offers advice.

When the busy spokesman answered "Yes" to a series of questions — including "Do you feel lethargic?" and "Do you go to bed after midnight?" — a message appeared on the screen warning he was under a lot of stress.

"Don't worry, tomorrow's a fresh new day," the phone then flashed. "Keep your chin up!"

NTT DoCoMo is still testing some of the phone's other technology, including a function to keep track of meals and calculate calorific intake, as well as a networking capacity to let users share data, Tobita said.

Japan has some of the world's most advanced cell phones, enabling users to surf the Web, check in at airports and play motion games.

DoCoMo has not set a release date or price for the Wellness phone. The Tokyo-based company's phones are not sold overseas.

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