All Things Digital

The days of measuring Internet usage with panels and surveys are finally coming to an end. Good thing too, because those media-measurement techniques–which were developed to gauge radio audience size 70 years ago–were getting, you know, a bit old.

Google (GOOG) today unveiled a new tool that promises to measure Internet usage more precisely. Called AdPlanner, it combines search engine and audience measurement data to create a richer, more intelligent picture of Internet usage, one that may prove far more useful to advertisers looking to identify the best places to buy ads that will reach their target audiences. Slap it together with the recently announced Google Trends for Web Sites and what use is there for traditional advertising-research suppliers?

Great news for media buyers and advertisers who’ve long relied on comScore (SCOR) and Nielsen/Netratings and their shallow, inconsistent metrics. Ugly news for comScore and Nielsen/Netratings, which now seem destined to be disintermediated by Google in much the same way the company disintermediated the rest of the online advertising industry. Sadly, they’ve no one to blame for this but themselves. It’s not like they haven’t been hearing complaints about discrepancies in audience measurement for nearly a decade now (some, presumably, from Google itself).

“We in the marketing-media ecosystem have spent too many years trying to clean up the residue of flawed media-research methodologies,” Randall Rothenberg, president & CEO of the Interactive Advertising Bureau wrote in a scathing letter to comScore and Nielsen//NetRatings back in 2007. “We simply cannot let the Internet, the most accountable medium ever invented, fall into the same bad customs that have hindered older media and angered advertisers for decades–customs such as inadequate samples, accepted out of begrudging convenience; or phantom metrics, like ‘pass-along readers,’ that add shadowy bulk to audiences that cannot be measured directly; or metering technologies and processes that are easy to game.”

Compete must have used a fair bit of the $43 million in VC funding it’s raised since 2000 on marketing, because market research outfit Taylor Nelson Sofres is acquiring it–despite the “digital intelligence” company’s reputation for inaccurate Web site traffic measurements and its loss of $4.5 million on $14.9 million of revenue in 2007.

Under the terms of the deal, TNS will purchase Compete for $75 million in cash and another $75 million in performance-based earn-outs over the next two years.

Compete, which has long been overshadowed by metrics verterans like comScore and even newcomers like Quantcast, was overjoyed to be among the early acquisitions in the consolidation beginning in the Web-traffic analysis sector. After all, TNS might have bought Alexa. “Why are we excited about becoming part of the TNS family,” Compete execs wrote in a post to the company blog. “Because it means joining our click-stream data with TNS’s massive consumer panel operations, consumer research capabilities and ad-measurement databases on a global scale. Marrying online and offline consumer data with media spending and exposure is the holy grail of marketing. All of our marketer, agency and media partners will benefit from access to new consumer, brand and media research that will revolutionize how they plan and measure their performance. It’s a big, exciting vision that neither company could do on its own.”

Larry Page and Sergey Brin are not your typical billionaires. In fact, if you type billionaire into Google, the picture that emerges–fancy cars, private jets, mansions, jewels, supermodel girlfriends–isn’t anything you’d find in the lifestyle of the Google guys. Page drives a Prius, which costs around $21,000. Brin gets around for the most part on in-line skates, and he still lives in a rented apartment.”

–ABC News, 2004

With its onboard hammocks, full-size sofas and California King beds, it’s a wonder Google’s “party plane” has room for scientific instrumentation befitting the National Aeronautics and Space Administration, but apparently it does. Google and NASA’s Ames Research Center signed a unique deal last month that allows the agency to “regularly collect Earth atmospheric and terrestrial observations in support of science research and analysis” on some of its flights.

In exchange, Google gets to park its customized wide-body Boeing 767-200, as well as its two Gulfstream Vs, on Moffett Field–a NASA-managed airport that is generally closed to private aircraft–for $1.3 million a year. “It was an opportunity for us to defray some of the fixed costs we have to maintain the airfield as well as to have flights of opportunity for our science missions,” Steven Zornetzer, a NASA official, told the New York Times. “It seemed like a win-win situation.”

For Google, certainly, but not for local residents, who’ve long opposed commercial use of the federally owned airfield and who worry that the deal could open Moffett up to other private flights. “The Google flights represent the possibility that the camel’s nose is under the tent, and that NASA is looking at opening up the use of the runways to help pay for it,” said Lenny Siegel, director of the Pacific Studies Center. “The majority of the people in the community are against that. If they are doing science missions, that’s OK. If they are doing it just because they are rich and popular, it is not OK.”