Florida's Attorney General has started to investigate AzoogleAds.com's business practice. The investigation centers on the company's ringtone ads and possible unfair and deceptive trade practices, according to AffiliateTip.com.

Just like free images or movie clips, "free" ringtones in exchange for downloading adware is an effective practice. Let's face it, people are often gullible and will blindly download software to get free stuff, even if it puts their computers at risk. But like any scam, it will eventually catch up to those involved.

While the investigation is just a first step in a civil, not criminal process, it could bring to light AzoogleAds practices. The company also runs a Christian dating service, WhereChristiansMeet.com, which some folks are advising against joining.

Website owners might be getting a bump in ad revenue during the next 18 months as politicians are viewing the web as an important advertising medium. The 2008 election season could establish video advertising rates and practices for the online industry.

The "Hilary 1984" ad on YouTube received national attention in short order, and we can expect many more political video ads as well as citizens using YouTube to voice their opinions on candidates.

Television networks love campaign season as politicians pour hundreds of millions of dollars into local and national advertisements, but a significant amount of that money will go online this time around. Campaigns will test pre-roll, post roll, and shorter and longer formats to determine the best mix, and what they learn will be absorbed by other advertisers. Candidate campaigns are huge consumers of demographic data, and the web gives them unparalleled access to measuring audience response. I'm sure there will be quite a few video ads that are test marketed online before going to TV.

Politicians are desperate for attention, especially from the younger audience of people who tend not to vote. Barack Obama and Hilary Clinton already have set up "offices" on Second Life, and more will be sure to follow. If you're not into politics, you may want to read a lot of books instead of going online or turning on the tube during the next year.

Blackberry addicts and news junkies can get their fix more easily thanks to a new RSS reader. NewsGator Go for BlackBerry lets you view and manage feeds from the ubiquitous mobile device.

The reader synchronizes with NewsGator's desktop and online products so that you won't have to waste time sorting through headlines that you have already read. You can also email articles to friends and save posts for later reading -- like when you are in front of a bigger screen and using all of your fingers to type.

NewsGator also has RSS readers for Java-enabled and Windows Mobile devices.

Also, publisher Red Herring is developing an RSS reader in conjunction with Smaato Inc. Red Herring will support the reader using Smaato's advertising platform which enables mobiles to interact with ads.

While they have been slow to take off, RSS readers will generate significant ad revenue in the future. Companies are still learning the potential and developing effective models, but because RSS readers simplify life, the advertising is sure to come.

The Apple TV is out, and many Mac enthusiasts are salivating over the new tiny boxes. While it may eventually have a sizable audience, most people should probably take a pass on version 1.0.

Yes, per the reviews it is simple and elegant to use, as long as you purchased your TV recently. But the primary reasons for holding off are its smallish hard drive and lack of access to non-iTunes content.

If I'm paying $300 or more for a box, I need something that is clearly better than what I can get from my existing equipment, and there is no "killer app" on the Apple TV today. All of the movies and many of the TV shows that iTunes offers can be had online or through Netflix or Blockbuster today (or TiVoed), which offer a magnitude more of choices. You don't need to listen to your iTunes music on your TV as you can easily plug in your iPod to your stereo. Photo sharing is nice, but for less than $1 you can burn your photos onto a CD and watch them on your TV.

So what am I missing -- what can you do with the Apple TV that is unique?

The 40 gigabyte hard drive is too small, and it will be a pain to delete a movie every time you want to watch something new. When Apple, or TiVo, or Sling Media creates a box where I can wirelessly stream any free online TV show, YouTube or other video clip, or rented movies to my TV, then I'll spend a few hundred bucks.

Apple doesn't enable you to watch ad-supported Internet content because it doesn't make them any money, so it is more likely that they won't be first to market.

CNN has redesigned its video and image library to make it easier to license content. The company is making strides to be more open in working with partners to share its more than 400,000 and 80,000 videos. The company is in the process of digitizing its video archive back to 1980.

CNN wants the cash up front to license its videos, although terms were not in the press release or on its website.

CNN videos are searchable on its website and through blinkx, but they company doesn't allow users to embed videos like YouTube. While CNN may be protecting its brand, CNN and other TV news stations could generate significant revenue by allowing video to be easily shared and put on other websites with embedded ads.

Video is becoming a commodity, and the publishers will slowly realize that sharing is the best way to increase their exposure as well as generate revenue.

Google is doing another limited test of pay per action advertising on its AdSense partner websites. The limited test is by the choice of the publisher, who would make a higher commission for each transaction but few transactions.

Greg Sterling says advertisers and publishers should be interested in giving PPA a spin. That's an understatement for any advertisers who feels that they have been victim of click fraud.

Google's interest is likely in response to pressure from disgruntled advertisers who would like more flexibility in their purchase options. Many companies have an extensive understanding of the monetary value of a lead through a sign up form, while knowing the value of dubious clicks is much harder to judge.

If the trial is a big hit (and Google is open about its performance), then the company would have little choice but to offer a PPC alternative.

There's a big confab on currently about the future of local search , and the consensus is that verticals will rule the roost. (See Donna Bogatin's attendee survey on trends).

Today the amount of money and attention being put into local versus "national" search is pathetic when considering the opportunity. Think about it -- the vast majority of purchases you make are within 10 miles of your home, yet local is no way competitive with generic search. Billions are being left on the table, and it amazes me that print business directories are still making the overwhelming share of the ad dollars.

I've posted on several of the startups in this arena lately, and if someone doesn't own the community and vertical-driven local space, you know who will eventually get around to it.

Google, which could do unto CitySearch et al what it has done to Microsoft and Yahoo, is treating local search as if it is still 2002. Here are the first few things that Google needs to do to dominate local:

Break up Maps from Local search, and put Local on the Google home page. The maps interface does not resemble anything that makes me think shopping.
Remember me: I have entered my zip code and even have a business listing on Google Local, yet I have to enter my damn area every time.
Add national chains: There are only 2 supermarkets within a few miles of my home, and Google should know that and rank those companies high when returning results of the products they carry. Google's sales reps should be banging down the door of Safeway, Gap, and WalMart etc. to get their stores into my local search. If I search "supermarket," I get results from far out of town, yet the stores that I can walk to aren't listed.
Add Personalization: I should be able to add and save my favorite stores, and just as previous results are stored in Google, they should be in Local.
Add Local to all results: Every Google search for a product which can be purchased locally should be a separate set of results.

My blood boils when I think about the money that will be made when someone eventually gets this right. What the heck is taking so long?

SalesForce.com just announced AppSpace, a MySpace for companies to create a secure CRM (customer resource management) environment for sharing files and ideas.

The collaboration software enables companies to create custom applications and mash-up SalesForce applications to enhance communications with its customers. Customers log on and theoretically they will see an open and customized interface that shares everything then need to know about what is happening with your business.

The MySpace paradigm is the next generation in online collaboration and it is surprising that it took this long for corporate to recognize the opportunity. This type of interaction could have been developed before the Web 2.0 phenomenon, but it took what a consumer service to shake things up.

While some customers will appreciate the additional information, the risk is always in limiting personal contact. A phone call or lunch meeting can take you in new directions that you can't anticipate or facilitate online, so do not over-automate the business relationship. And do you really need to know what kind of music that buyer from Des Moines listens to? (Just kidding.)

A House subcommittee is again considering spyware legislation that would prevent the distribution of software that takes control of computers without user consent. While federal legislation of this type is needed, the bill as introduced is questioned as being so broad that it could limit innovation.

But in addition to creating penalties for adware/spyware companies that cross the line, the legislation should remove the incentive for developing such software by penalizing the affiliates and advertisers who pay these companies. The ever-vigilant Ben Edelman gave kudos to New York State for forcing companies that hire spyware companies to discontinue the relationships. While some advertisers haven't lived up to the deal, the idea is right and should be included in federal legislation.

To me this is analogous trying to enforce immigration without penalizing the companies who hire the workers. Our current set up gives only a slap on the wrist to companies who hire illegals, who face deportation even though they are benefiting slightly compared to their employers. If national advertisers started getting smacked with seven-figure fines for dealing with spyware companies, you betcha they'd start doing do diligence before and quick exits after they form a questionable partnership.

A new ad network is focusing on the new age crowd with shows focusing on sex and healthy living. While the content may not appeal to everyone, Personal Life Media's ad strategy may be.

Instead of inserting ads within the 30-minute shows, the publisher is opting for sponsorships that introduce the brand before the show. This will likely lower the ad dollars per podcast, but could be more attractive to listeners who won't lose the flow or be tempted to quit in the middle if they hear an ad. I mean you wouldn't want programus interruptus when you are listening to a show about orgasm, right?

Niche publishers in streaming media (audio or video) need to settle on a consistent advertising formula to make selling easier. Sponsorships and product placement are the least disruptive, so maybe it's better to go for less dollars and hope that the audience will grow enough to become profitable. If people get hooked, then more ads can be introduced.

Found via MediaPost.