Gmail: the Next Gator?: "E-mail marketers may be surprised to learn what happens when recipients see their messages in Google's soon-to-debut, ad-supported e-mail application. Messages contain ads for competitors' products, ClickZ News tests revealed...
Example: a Travelocity mailing that triggered ads from Hotwire, Cheapfares.com and TravelFleaMarket.com. All are Travelocity competitors. Similar situations occur with publishers' e-mail newsletters, which are often ad-supported; and transactional e-mail, such as online bill statements or order confirmations...
It's analogous to McDonald's paying someone to wear a McDonald's-branded sandwich board in front of a Burger King. In the interactive arena, it's akin to the kind of competitive pop-up ads that have generated controversy (and legal action) for Claria.
"Google targets ads based on the text of a message," said a Google spokesperson. "If a message contains information about a service or product, Gmail may display a competitor's ad. This is a benefit to users because it provides additional relevant information that enables them to make informed decisions."
If Gmail is released more widely in its current form, the competitive environment is certain to intensify. Google recently shifted its trademark policy to allow advertisers to bid on trademarked keywords. Hypothetically, a message from Banana Republic (for example) could, simply because of its subject line, trigger ads from J. Crew, Eddie Bauer and the like."
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