Bloomberg Reports “The Fake Traffic Schemes That Are Rotting The Internet”

Uh oh… Is internet advertising just a house of cards?

Late that year he and a half-dozen or so colleagues gathered in a New York conference room for a presentation on the performance of the online ads. They were stunned. Digital’s return on investment was around 2 to 1, a $2 increase in revenue for every $1 of ad spending, compared with at least 6 to 1 for TV. The most startling finding: Only 20 percent of the campaign’s “ad impressions”—ads that appear on a computer or smartphone screen—were even seen by actual people.

“The room basically stopped,” Amram recalls. The team was concerned about their jobs; someone asked, “Can they do that? Is it legal?” But mostly it was disbelief and outrage. “It was like we’d been throwing our money to the mob,” Amram says. “As an advertiser we were paying for eyeballs and thought that we were buying views. But in the digital world, you’re just paying for the ad to be served, and there’s no guarantee who will see it, or whether a human will see it at all.”

READ THE FULL STORY AT BLOOMBERG:
http://www.bloomberg.com/features/2015-click-fraud/

YouTube’s Sucker Punch ? Free Streaming Licenses, No Subscription Fees…

We reported on this a little bit ago that YouTube Music Key seemed to be a pretty good way for Google to leverage labels into legitimate licenses with the promise of paid subscription fees. We questioned that in our post, “Did Google & YouTube just Scam The Entire Record Business into Free Streaming Licenses? MusicKey is MIA…“.

But here’s the thing… it’s not just us. Music Business Worldwide is asking the same question:

YouTube Music Key starts charging subscriptions… oh wait, no it doesn’t | Music Business Worldwide

You can see why suspicions are growing out there amongst the more cynical minds in the music biz that YouTube won’t ever charge for Music Key.

YouTube struck a number of megabucks, multi-year licensing deals with rights-holders last year, largely on the basis of launching a subscription platform.

Deals done, labels are now scratching their heads as to why Music Key isn’t earning them any money, almost a year after it was announced.

READ THE FULL POST AT MUSIC BUSINESS WORLDWIDE:
http://www.musicbusinessworldwide.com/youtube-music-key-starts-charging-subscriptions-oh-wait-no-it-doesnt/

 

About Social Media and Internet Advertising | AdLand

Our friends at AdLand recently posted this story “Nice ad you got. Be a shame if no one saw it.” They detail how social media sites like YouTube and Facebook are becoming more and more aggressive in leveraging their platforms to require payment for engagement.

Bands take note, these platforms are charging you to reach the audience you built for them…

The article is a must read, a small except below.

In 2012, GM stopped advertising on Facebook. It took its 40 million dollars elsewhere. When Facebook started reducing organic reach it became even clearer that social media is not the bargain, or effective juggernaut it was purported to be.

Consider that analog media print for a moment. You spend money to place an ad in GQ, and it goes in GQ’s across the country. There is no guarantee someone will buy the magazine, of course, but if they do, there is a good chance they’d see your ad. If Facebook owned GQ, you’d place an ad in it, and then Facebook would hide 90% of the magazines unless you paid them to put the magazine featuring your ad on the magazine stands.

So we live in the digital age where media channels like Youtube and Facebook seem only effective if you pay for views to inflate your numbers (and likes if you’re even more smarmy). And remember, a vast majority of Youtube videos (ads or otherwise) do not go viral. Then in Facebook’s case you’re dealing with a a quasi-Mafia-style practice of paying them to “boost” your post to an audience you worked hard to cultivate.

PLEASE READ THE FULL STORY AT ADLAND:
http://adland.tv/adnews/nice-ad-you-got-be-shame-if-no-one-saw-it/1541959236

FCC Shelves Pandora’s Bid For South Dakota Radio Station | Billboard

In a setback to its music licensing plans, Pandora has received word from the FCC that for the time being it is no longer processing its application to transfer ownership of the broadcasting license for KXMZ, the Rapid City, South Dakota radio station it acquired last June. Pandora had hoped to take advantage of the lower rates that internet streaming services owned by terrestrial radio stations enjoy.

READ THE FULL STORY AT BILLBOARD:
http://www.billboard.com/biz/articles/news/legal-and-management/5869791/fcc-shelves-pandoras-bid-for-south-dakota-radio

DMN : 7 Reasons Why Artists Should Skip a BitTorrent ‘Media Partnership’

Worth repeating here from Digital Music News by Helienne Lindvall.

Lately, BitTorrent, Inc. has made a concerted effort to appear “legit”, courting both artists and their managers.  It’s even managed to become a “tech partner” of the UK Music Managers Forum.  But is partnering with BitTorrent – and its uTorrent client – really a good idea for artists?

READ THE FULL POST HERE AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com/permalink/2013/20130529bittorrentjustsaynoearbud