Home  › Marketing › Strategies

France Mulls Online Ad Tax as Google Objects

  |  January 8, 2010   |  Comments

Report suggests a levy of one to two percent on ad revenue earned by Yahoo, Google, and others.

clickz_ukandeu.gifThe French government is considering taxing the online ad industry in order to help offset the impact of digital on other media.

A report presented to the French government this week suggests that each time an ad is clicked, online firms should be charged a levy of between one and two percent of the revenue generated, which would then be used to compensate media and content owners in other sectors, such as recorded music or print media, for example.

The proposal, commissioned by the government, was written by former music executive Patrick Zelnik, former minister Jacques Toubon, and the president of Sotheby's France, Guillaume Cerutti. It singles out a number of major online ad firms including Yahoo, Microsoft, and search giant Google. According to the Guardian, Toubon told the Libération newspaper in France the aim of the proposal was to curb "the limitless enrichment" of the world's leading internet players.

In a statement e-mailed to ClickZ, Olivier Esper, Senior Policy Manager for Google in France, countered that argument claiming the tax would in fact hinder innovation. "We don't think introducing an additional tax on internet advertising is the right way forward as it could slow down innovation. The better way to support content creation is to find new business models that help consumers find great content and rewards artists and publishers for their work," he said.

Esper went on to argue that Google itself already supports and encourages content creation by helping publishers monetize their content. "We distributed more than 4.2 billion euros last year to our partners, helping to fund great content creation," he added.

Ultimately, a levy of this nature would appear difficult to impose, given the global nature of the Web and most major players in the online ad space, and there's currently no indication if or when such proposals might be enforced.

AOL, which was also named in the report, declined to comment.

Tags:

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Jack Marshall

Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011. 

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

    Information currently unavailable

Jobs

    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...
    • SEO Senior Analyst
      SEO Senior Analyst (University of Phoenix (Apollo Education Group)) - San FranciscoSEO Senior Analyst   Position Summary...
    • SEM & Biddable Media Manager
      SEM & Biddable Media Manager (Kepler Group LLC) - New YorkAs an Optimization & Innovation Manager at Kepler Group, you will be on the bleeding...