Magid Abraham

ComScore, in Allaying Google Concerns, Opens Door To Question Its Data

Larry: I am just copying my response to this blog on ZDNET.

Many of the pieces on this entire subject have been long on opinion and short on data. Yet, when a very detailed data analysis is presented, people take a cynical view of it. The piece I wrote proves what many people, including yourself, have hypothesized but did not have the hard facts to prove.

I am not trying to say our data is not a big deal. The market reaction speaks for itself. I am just trying to analyze what the data is really saying, rather than run with one number and claim the sky is falling. Once again, the world cannot be described by a simple metric, regardless of how powerful it is.

I was in NY at a Jefferies investment conference last week. In every single conversation I had, people wanted to know our insights about the Google data. I showed a couple of slides on the data during comscore's presentation to answer everyone's questions in an efficient manner. The more we talked the more convinced I was that we needed to take a deeper look and share it.

Some people have taken issue with my assertion that last week's panic was bad for the Internet industry. The simple fact is that virtually all of the Internet is advertising supported. When people believe that the online advertising market turned sour, it affects almost everyone, not just Google. Startups have a harder time getting funded. Large companies cut back on their investments. Investors flee to the sidelines. The talk about recession, including the online ad market, is a self fulfilling prophecy. If you think Wall Street is reacting based on a thoughtful conclusion, then you should tell people about your faith in the stampede of the crowd. Otherwise, why should we not point out what an in-depth analysis really says?
Magid Abraham