Microsoft’s Purchase of aQuantive Raises Ethical Questions

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by on May 18, 2007  •  Permalink
Posted in Ad Networks, Advertising, blogs, Brands, Business, Consumers, Interactive Advertising, Marketing, Marketing Blogs, Marketing.fm, Technology

Last week we discussed the ethical implications of WPP’s acquisition of 24/7 Real Media. Can a marketing services holding company maintain it’s integrity if it has interest in both the buy AND sell side of a media buy? Brands contract media agencies to represent their best interest right?

Microsoft’s purchase of aQuantive raises similar questions: how will Microsoft maintain the relative autonomy of media agency Avenue A Razorfish? According to Joe Doran, EVP of Microsoft Digital Advertising Solutions:

Joe Doran: We do know people could say there’s a conflict of interest between us. We want to make sure all ad agencies understand we don’t want that to become a reality. We’ll operate Avenue A/Razorfish at arms length, make sure they have ability to drive the value for marketers and advertisers and remain independent.

Hmm. Should we take their word for it? Will WPP take the same approach?

Don’t marketers hire agencies to make the best and most unbiased use of their media spend? Will that be possible if a brand’s agency is owned by a company who would like to spend as much of your budget on their services as possible? This is a very interesting turn for the Advertising & Media business and we’ll continue to watch it unfold.

Related Links:

Upfronts Give Way To Roll-ups

[tags] wpp, 24/7 real media, microsoft, aquantive, avenue a razorfish, media agencies, marketing.fm, marketing blogs, ethics [/tags]

Posted by Lee on May 18, 2007

http://www.ericgfriedman.com/2007/05/18/microsofts-purchase-of-aquantive-raises-ethical-questions/

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  • Dave

    Great question to be asking. I hope companies can hold a high level of ethical standards.

  • http:///www.virtualmarketingblog.com/ Dave

    Great question to be asking. I hope companies can hold a high level of ethical standards.

  • http://www.apogee-web-consulting.com/blogger/ Richard Ball

    Both Google and Microsoft will own SEM firms. Yes, this is a serious conflict of interest. In the case of Microsoft, what happens if aQuantive’s Avenue A | Razorfish clients leave? What are they actually buying for $6 billion? Are they buying aQuantive’s software? Are they buying the agency clients? Are they buying the company’s staff?

    I somehow doubt Avenue A | Razorfish will be able to operate and be accepted as independent from Microsoft. Will they really recommend Google AdWords and Yahoo! Search Marketing over Microsoft AdCenter because the Google and Yahoo! ad networks have greater reach? I’m sure they’ll have to recommend AdCenter. Hmm, how many Avenue A | Razorfish clients want Microsoft to know their Google ad spend? I wonder if Microsoft will be forced to spin off the agency and keep the other assets.

  • http://www.apogee-web-consulting.com/blogger/ Richard Ball

    Both Google and Microsoft will own SEM firms. Yes, this is a serious conflict of interest. In the case of Microsoft, what happens if aQuantive’s Avenue A | Razorfish clients leave? What are they actually buying for $6 billion? Are they buying aQuantive’s software? Are they buying the agency clients? Are they buying the company’s staff?

    I somehow doubt Avenue A | Razorfish will be able to operate and be accepted as independent from Microsoft. Will they really recommend Google AdWords and Yahoo! Search Marketing over Microsoft AdCenter because the Google and Yahoo! ad networks have greater reach? I’m sure they’ll have to recommend AdCenter. Hmm, how many Avenue A | Razorfish clients want Microsoft to know their Google ad spend? I wonder if Microsoft will be forced to spin off the agency and keep the other assets.