Uncategorized – Page 44 – Digital Destiny

just an excerpt, for the record:

“Gopi Kallayil, who leads Google’s AdSense marketing team, which works with Internet publishers, says CMOs now have a tremendous opportunity to communicate with and influence audiences by leveraging Internet marketing.

“The Internet gives advertisers the opportunity to build “mind share” more effectively, by targeting the right context at the right time, ensuring their messages are relevant to the people they are trying to reach,” Kallayil says. “Advertising networks have proven very effective in building brand awareness and generating demand. In addition, the Internet gives marketers more precise, measurable accountability for their ad spending than does traditional media. Demand fulfillment has never been more accurately measured.”

Large and small companies are able to use new media to engage in what Kallayil calls “mass micromarketing.” Marketers can use the Internet to target specific, well-defined audience segments, yet also reach a large audience, scaling many markets. By using the Google network, Kallayil contends, advertisers could reach 80% of the estimated 1 billion people around the world who use the Internet.”

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IP addresses +Cookies+Tracking/Targeting & Retargeting [esp. cross-platform]=You

Here’s a brief excerpt from a FTC filing my Center for Digital Democracy will submit today for the commission’s online advertising and privacy guideline proceeding.

“Google and most other online advertisers would prefer to hide behind the erroneous claim that IP addresses and cookies don’t reveal an individual’s physical identity (place of residence, phone number) or specific economic identifyer (social security number). But they know that in today’s digital marketing era, the very tiny bits of personal behavior they have identified are parts of individual human identity. Our “virtual” identities may be composed of discrete and disassembled bits of information about ourselves: Â—what we like to read, watch, buy; our problems and concerns (such as health or our children’s education) or our political interestsÂ—, but they are very much living aspects of ourselves. The goal of interactive marketing is to collect, analyze, and use such information to serve the interests of those paying for the targeting. The technique uses one, two or multiple individual data points in a variety of ways (search ads, broadband videos, virtual worlds) to get individual consumers to behave or act in ways that favor or reflect the marketer’s goals. The record makes clear that IP addresses and cookies provide the technical means for the one-to-one targeting of consumers.”

Google+Yahoo!=Further Newspaper Industry Consolidation (Att: FTC et al.)

The growing and ever-evolving corporate consolidation of the online advertising industry is a critical issue that should be addressed. Are there any responsible regulators and policymakers out there? We wonder, since so many are asleep at the digital switch. The intense, libidinal rivalry between Google and Microsoft almost knows no bounds. While an alliance with Google may save Yahoo from Microsoft, leasing out its search business all but ends Yahoo’s role as an independent competitor, as far as we are concerned.

One issue that requires analysis is what happens to newspapers if a Google and Yahoo merge or mingle its search business. Between the two companies, they have the majority of newspapers locked up. Yahoo’s newspaper consortium represents hundreds of dailies. Google also has its own newspaper network. Indeed, Google just ran a full-page ad in the March 31, 2008 issue of Advertising Age touting its “Google Print Ads” network. Google says it now “covers all but two of the top 50 media markets and reaches an aggregate audience of more than 40 million readers a day via more than 750 million newspapers, from major dailies like the New York Times to smaller community and college papers, Hispanic newspapers, alternative weeklies and business journals.”
With our nation’s newspaper industry in tatters–and journalism in dire straits–the role that a competitive online ad system plays to provide much needed revenues to newspapers is an important issue. Anti-trust regulators, and other policy makers, should examine the implications to newspaper diversity of any new deal further reducing the competitiveness of the online ad system. By the way, since newspapers are using these systems for behavioral and other targeting, both privacy and data collection issues should be part of the analysis.

Google, AOL, Yahoo, Facebook and Comcast Fear NY State bill protecting online privacy

Oh, what a tangled web when you build a business mode based on the collection and unfettered use of microtargeting data. New York state Assemblyman Richard Brodsky has proposed some modest safeguards–but has scared the supposedly privacy-respectful companies such as Google with it. Google, AOL, Yahoo and others sent the letter below to Brodsky. Yesterday, we are told, AOL and News Corp lobbyists met with Brodsky’s office and claimed that the online ad industry would have to flee New York if consumers are protected in that state. Perhaps they plan to relocate Madison Avenue to a digital green zone outside the U.S.! Btw, note the addition of Comcast, which also wants to protect its TV version of behavioral targeting via its Spotlight service.

The letter:

State Privacy and Security Coalition, Inc.

April 7, 2008

The Honorable Richard Brodsky
New York General Assembly
Legislative Office Building
Room 422
Albany, NY 12248

Re: Opposition to A. 9275

Dear Assemblyman Brodsky:

We are writing to express our strong opposition to A. 9275, which is
unnecessary, most likely unconstitutional, and would have profound
implications for the future of Internet advertising and the availability of free
content on the Internet.

A. 9275 would subject advertising networks to an extremely
detailed, unprecedented array of notice, consent, and access obligations
relating to â€œpersonally identifiable informationâ€ and â€œnon-personally
identifiable information â€ that is used for â€œonline preference marketing.â€
Every website that an advertising network contracts with would be subject
to detailed notice requirements.

This bill is unnecessary because advertising networks have already
agreed to self-regulation commitments relating to most of the components
of this bill. If they fail to live up to these commitments, then the Federal
Trade Commission and the New York Attorney Generalâ€™s office would
have enforcement authority. Moreover, the bill appears to be based on
Network Advertising Initiative principles that will soon be outdated, as new
principles are expected to be released in the near future.

This self-regulatory system is continuing to advance. The Federal
Trade Commission has issued further self-regulatory principles relating to
behavioral advertising on which it will receive extensive comments later
this week, and several major network advertisers have announced new self-
regulatory initiatives. New York does not need to, and should not, jump
into this process.

This is particularly true because the Dormant Commerce Clause of
the U.S. Constitution prevents any State from dictating activity across the
Internet. Yet network advertisers and websites across the country and
operating in other countries would have to attempt to change their practices
to conform to the very specific notice, consent and access requirements in A. 9275. It is simply not feasible to comply with Internet advertising regulations that vary from state-to-state. Time after time, state laws that have attempted to impose this sort of broad Internet regulation have been struck down by the courts, doing nothing more than making taxpayers bear the expense both of defending the lawsuit and paying the successful plaintiffsâ€™ attorneys fees.

For all these reasons, we urge you to oppose A. 9275 and allow self-regulation and federal initiatives to address online behavioral advertising.

Sincerely,

Jim Halpert
Counsel

[Members]

AOL, LLC
Comcast
eBay Inc.
EDS
Facebook
Google
Internet Alliance
Monster Worldwide
NAi
NetChoice
Reed Elsevier, Inc.
Yahoo!
500 8th Street, NW
Washington, DC 20004
202.799.4000 Tel
202.799.5000 Fax

Report on online ad market: "DoubleClick owns the head and Google owns the tail"

A new study conducted in January 2008 by Attributor and Compete shows that [excerpt]:

DoubleClick and Google dominate overall market share capturing 35% and 34% of unique users, respectively.
DoubleClick owns the head and Google owns the tail. For sites with over 1MM monthly unique users, Doubleclick has a 48% share, a 3x advantage over 2nd place Yahoo. For sites with less than 100k monthly unique users, Google has an 8x share advantage over 2nd place MSN…

The GoogleClick combination is an ad-serving juggernaut.

See this discussion as well from eMarketer on the study. Search Engine Journal also covers it.

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Comcast works with Miller Beer, Kraft Foods, Mars, Publicis to expand cable TV ad targeting. Baltimore new location for its micro-targeting–and consumer privacy threatening–trials

Here’s the excerpt from the 4/4/08 Comcast and Starcom (a division of Publicis ad giant) release. See too the role of outside databases in the targeting, including from Experian, Acxiom, List USA and Equifax. We hope Comcast watchers, privacy and consumer advocates, and Maryland state officials, take notice:

“Comcast Cable, and leading media agency network Starcom MediaVest Group (SMG) announced today the expansion of their agreement to test addressable TV advertising with a trial scheduled to launch in the third quarter of 2008 in the Baltimore, MD area. The companies also shared findings of a recently completed groundbreaking trial of addressable advertising technology…

The initial technical trial, which began in December 2006, took place in Huntsville, AL… Comcast has been offering zone-based advertising, but this was the industry’s first significant effort to deliver different ads within the same commercial break to different household groupings, based on demographics and advertiser segments…

“Addressable advertising gets us closer to the power of mass personalization by delivering highly relevant brand messages to engaged consumers, and this is the ideal connection in a world of scarce consumer attention,” said Laura Desmond, CEO-The Americas at Starcom MediaVest Group.

Major marketers active in the trial, all SMG agency clients, included General Motors, Discover Card, Hallmark, Kraft Foods, Mars, Miller Brewing Company and Procter & Gamble. One of the unprecedented capabilities demonstrated in this trial was advertisers were able to segment the market into audiences based on demographic data, and Comcast was able to deliver relevant ads for the advertisers’ products and services to each segment.

Comcast’s data services partner, Experian(R) Marketing Services, assisted Comcast in segmenting the market and matching relevant messages to groupings of households. Addressable advertisements were delivered with the support of OpenTV’s SpotOn(TM) advanced advertising solution, which allows for seamless switching of video ads to aggregated groups of set-top boxes…
The trial revealed that viewers who saw ads directed to households within a particular group were less likely to change channels… The Huntsville market was selected to pave the way for a larger scale deployment in 2008. The next Comcast Cable market slated to receive an expanded trial of addressable advertising is Baltimore, MD using Invidi’s Advatar(TM) technology.”

Comcast, in its release, claims that privacy will be honored. We think that’s a claim that requires to be challenged. Here are excerpts from Invidi, the technology company Comcast is using for this micro-targeting and data collection trial:
” For operators, ADVATAR provides the ability to address every subscriber on an individual basis. Marketing messages can be fine tuned and matched to the diverse interests of viewers and to the rapidly changing marketing needs of operatorsâ€¦
Viewer Present Classifier
Learning the demographic make-up of the household is critical to targeted impressions delivery
Age Classifier
Behavioral cues, viewer patterns and remote control click-stream data create gender IDs that are accurate and reliable
Gender Classifier
Converging industry data and program category information with remote control usage generates superior gender identification
Income Classifier
Cross-tabulating US Census data and zip code+4 information creates dynamic blocks of median household income
Geography Classifier
Periodically published tables correlate unique DSTB IP addresses with zip code + 4 data for dynamically generated targeting zones
Additionally, INVIDI is expanding its classifier set to include a Multicultural Classifier and a Contextual Search Classifierâ€¦
With Spot Optimization advertising inventory on the most popular cable programs is expanded by segmenting the audience to enable either a single advertiser to deliver multiple ads or multiple advertisers to advertise to different demographic targets all within a single time-specific break – generating substantial additional revenue by creating more quality targeted inventory to sellâ€¦
Geo Targeting
Every advertiser and marketer has the ability to create their own unique geo targeting mapping criteria. ADVATARâ€™s Geo Targeting used in combination with addressable, demographic and behavioral processes creates a new and powerful television advertising and marketing landscapeâ€¦

For advertisers, ADVATAR is the ultimate impressions delivery system – making â€œPrime Timeâ€ whenever viewers are watching television. For the first time ever on any television platform media planners can precisely execute their advertising campaign with reach, frequency and separation – guaranteed impressions delivery to true demographic targets.
For media buyers ADVATAR provides unprecedented access, prevue, purchase, verification, real-time campaign management and dynamic reporting of television delivered impressions.”

PS: From Invidi’s December 2007 deal with Nielsen [excerpt. our emphasis]:
“The Nielsen Company and INVIDI Technologies Corporation today announced a multi-year agreement to share data and explore ways to measure personalized television ads targeted at specific viewers. As part of the non-exclusive agreement, Nielsen will provide INVIDI with demographic data that will enable INVIDI to refine and improve its advanced software engine â€“ called Advatarâ„¢ — to track â€œaddressableâ€ advertising. Addressable or â€œtargetedâ€ advertising allows digital television providers to simultaneously deliver different ads to specific groups or even individuals based on their demographics, buying habits or personal preferences.”
PPS:Â A video report on Comcast & Invidi (note mention of privacy concerns). via YouTube.

CDD Publishes new report on widgets, third-party apps: &quot;The Facebook Economy&quot;

My CDD commissioned a report from investigative journalist Adam Mayle that examines Facebook and the growing universe of third-party applications. The report, available via here, examines some of the data collection and privacy issues from these Facebook-related services.

Here’s a short excerpt: “But while this platform has benefited many, it raises concerns about user privacy. Because of their deep integration into Facebook, developers have extensive access to user information, but it is often unclear if, when and how they exploit this data. This situation is perpetuated by Facebookâ€™s unwillingness to regulate the widgets that operate on the site. As a result, users often have no idea who is collecting their data, how information is obtained as one interacts with these applications and how such data â€“ even so- called not non-personally identifiable information â€“ is subsequently used. By eschewing liability and placing the burden of responsibility on developers to police their own applications, Facebook unnecessarily exposes its users to cyber-threats like adware, malware and hackers. In many ways, Facebook has created a
dynamic social network, but because of the practices that it has adopted, it needlessly places the privacy and security of its users in harmâ€™s way.”

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