Of the more than 500 million people who have registered Google+
accounts, 235 million actively use the accounts each month,
including 135 million who only use the accounts to check their
Google+ stream,
Google said last December.
Agencies blindsided
Google seems to be more concerned about the impact of endorsement
ads than advertisers. Usually the company gives a heads up to some
agencies before announcing a new ad product or feature. Not this
time. One agency exec who asked to remain anonymous said his shop
would usually get "big-time notice" for a product like Shared
Endorsements, but didn't. He wasn't alone.
"This one came out of nowhere," Mr. Tabeling said.
Mr. Adams also didn't receive direct notice, though "anything
that has to do with performance marketing usually goes through me."
He reasoned that Google may view the news as more aimed at
consumers than advertisers. That wouldn't be unprecedented. When
Google announced the
ability to search for flights in September 2011, advertisers
were similarly blindsided "even though it dramatically affected the
travel industry," Mr. Adams said.
Google may be tiptoeing because it doesn't want to attract
attention from the Federal Trade Commission. The company
settled with the regulatory body over privacy violations in
2011, and was slapped on the wrist last year
for violating that agreement. Yet Google may be over-cautious
this time. Even one of Google's most outspoken critics sees Shared
Endorsements as relatively benign news.
"I don't think Google will be singled out for this proposal and
punished for violating privacy just with social endorsements," said
Jeff Chester, executive director of the Center for Digital
Democracy. He added that the vagueness and timing with which Google
announced the changes show "they clearly thought about the FTC.
They didn't want to make the same mistake as Facebook."
Having settled
with the FTC over privacy violations in 2011,
regulators are looking into privacy policy changes that the
social network proposed publicly last month without consulting with
the commission beforehand.
Rather than let Google entirely off the hook for shared
endorsements, Mr. Chester said the move is part of a broader push
by Google to collect and use more data from users. "That's the real
problem. Not that they're playing social commerce catch-up with
Facebook," Mr. Chester said.