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When ads for toothpaste started to appear alongside an email about a gmail users trip to the dentist, alarms started going off about how far Google had gone in its online advertising practice. Was targeted advertising crossing the line of privacy... bringing The Matrix a little too close to home? Initial fears were assuaged by the search behemoth's promise that information used to target ads were not stored or used in any sinister way.
Targeted ads were just one of Google's advertising strategies. However, it's bread and butter was "pay per click" ads. The news last yeat that Google planned to take over DoubleClick, the major player in online ad placement, gave many investors pause, as it seemed like anti-trust issues may arise. The algorithm DoubleClick uses to place ads could be used by Google's ad software AdSense to put those ads in Google owned locations more often. As confusing as it is (and it is), the issues seem to be resolved, as the FTC approved the merger in late December. The jury is still out in the EU, with a decision expected by April 2. Time will tell if those concerns were founded or not.