An overview of some of today’s search, advertising and tech news.
Google Adwords was granted victory by U.S. District court Judge Gerald Bruce Lee in Alexandria, Va, in the case on the alleged trademarks infringement brought against it by Rosetta Stone. Lee declared the plaintiff’s arguments invalid and said that Google even increased brand awareness for Rosetta Stone through the use of “trademarked terms as keyword triggers and as words within sponsored link titles and advertisement text.”
Hot on the heels of the ruling, Google issued an update on its trademark policy. In a blog post, product manager Dan Stokeley wrote that the company is extending its policy of allowing trademarks as keywords to Canada, the U.K. and Ireland as of September 14th. He added that on the same day, “advertisers across Europe” will also be able to use such trademarks as keywords in their campaigns. This should help Google boost its revenues, no doubt.
One search engine that could really do with higher revenues is AOL. The company has reported a net loss of $1.06 billion, or $9.89 per share for the second quarter. With a lighter presence in France and Germany, AOL’s international display fell 52%, it said, while domestic display slid 7%. Search and contextual ad revenues fell 28%. Overall advertising revenue fell by 27%. Chairman and CEO Tim Armstrong remained confident and said during the earnings’ call that “It’s about taking a company that was very sick and making it healthy.” Although missing market expectations, the results did not surprise as AOL is currently undergoing business restructuring. The company took a $1.4 billion writedown for the sale of Bebo and a sharp drop in its share price.
More bad search and advertising revenue news also came from News Corp’s Digital Media Group, who attributed its widened fourth-quarter loss to MySpace‘s poor performance in the areas concerned. However, CEO Rupert Murdoch said he will keep the social network in his conglomerate for now. Speaking to analysts, he said the platform is undergoing a complete overhaul and “will look very different in the next few months than it has in the last few years. We’re going to see it out for some time yet. Obviously, we’re keping it under very close review,” PaidContent reported.
To round up the news picks, investment news from social platform Facebook who has acquired Friendster patents for $40 million, GigaOM reported. The patents were bought in “a deal that included advertising, a partnership for payments for virtual goods, and cash,” a source familiar with the matter was reported as saying.