Category: privacy

Microsoft’s “Advertising Exchange” for mobile and online: How will it be addressed by its own Do Not Track approach?

Microsoft has received praise for offering in Internet Explorer 9 a “tracking protection” capability that will enable users to import lists of third party sites that would be blocked.  That’s useful, but not enough.  Microsoft engages in extensive behavioral targeting (inc. for mobile) and other interactive ad strategies designed to capture data throughout its global digital advertising service (as does almost everyone else in the online ad business; that’s one reason why so-called “first-party” websites and services require consumer privacy rules). To beome a true leader in the privacy arena, Microsoft should do more.  Take its Microsoft Advertising Exchange, which sells instant access to users in real-time (such as what Google and also many others do).  We want to learn from Microsoft what privacy and consumer protection safeguards it’s developing for the Exchange, which “now supports approximately 8 billion impressions, or transactions, per month.”   Microsoft has been using and has just invested additional funding in AppNexus, which describes itself as “the industry’s most advanced real-time ad platform.”

ClickZ noted that: “In addition to using AppNexus to support real-time bidding on its sites, its ad network, and its exchange, Microsoft has begun supplementing regular ad buys on the Microsoft Media Network with exchange-traded inventory. That extra inventory carries a lot of potential reach, since AppNexus claims to support 4 billion transactions or impressions a day…Additionally, Microsoft has put the pieces in place to create a mobile ad exchange, called Microsoft Advertising Exchange for Mobile.. It will work by allowing Windows Phone 7 app developers to plug into demand from mobile ad networks like Millenial Media, InMobi and MobClix.”

Microsoft should tell the FTC, the EU, Congress and others how it plans to address the privacy issues raised by its Exchange expansion plans.  Last July, Microsoft noted that: “Microsoft is moving aggressively to provide our customers with access to our owned and operated inventory, as well as partner inventory, via our exchange. This move is in addition to our expansion of the Microsoft Media Network, which combined with the exchange, provides a holistic solution for our customers.  In recent weeks we have on-boarded US Windows Live inventory – including Hotmail and Messenger – into our exchange, providing a highly liquid pool of high quality inventory to demand partners on an RTB basis. We have integrated with each of the major DSP’s to ensure that our customers can work with the partner of their choice in accessing inventory.  Moving forward we will make available the rest of our US owned and operated inventory and partner supply. We’re excited about the efficiencies offered by an exchange-enabled ecosystem, and are committed to providing a foundation that enables innovation by allowing third parties to add value in a transparent, trustworthy ecosystem…over the next six months we will be integrating DSP’s into the Atlas Technology Partner Alliance. This will enable Atlas advertisers to seamlessly partner with the DSP of their choice to extend their buys onto RTB exchanges while enjoying all the benefits of campaign tracking and optimization…”  

We will be turning to the online ad exchange system and privacy issues, in the weeks ahead.

IAB Gets a new Chance to Play Constructive Role as Randall Rothenberg Goes to Time Inc.

The departure of Randall Rothenberg, the head of the Interactive Advertising Bureau, provides a critical opportunity for the IAB to revisit its position on protecting consumer online privacy (including Do Not Track).  Under Mr. Rothenberg, the IAB lobbied Congress to restrict the FTC’s ability to protect consumers, including on privacy.  With new leadership, the IAB could begin playing a more constructive role by working with consumer groups to build a consensus on federal privacy rules.  Instead of confrontation and denial, we hope the online ad lobby pursues serious engagement with privacy advocates.   The IAB has become just another inside the Beltway lobbying group–and has lost credibility among many policymakers.  A new IAB leader should be someone who can really help the mission of the industry by engaging in the kind of diplomacy and debate that supports the higher purposes of online advertising, digital publishing, and the public interest.
At Time, Mr. Rothenberg will now be in charge of its online ad network, which uses behavioral targeting and other interactive data techniques.  How Time responds to the growing call for better consumer privacy will be one of Mr. Rothenberg’s new challenges.

The new “OpenRTB” online ad exchange platform–consumer protection and privacy concerns

Both Advertising Age and Adexchanger.com report on the new “real-time bidding” consortium.  Real-time bidding stands for a process where each of us are tracked and sold to the highest bidder, in real-time, so we can be targeted with ads (from financial products to pharmaceuticals to travel and more).  The OpenRTB effort provides “industry standards for communication between buyers of advertising and sellers of publisher inventory.”  Initial members include leading data targeting companies Data Xu, MediaMath, Turn, Ad Meld, Pubmatic and the Rubicon Project.

The further integration of data tracking and selling platforms raises consumer protection, privacy and competition issues.  Consumers need to be able to decide for themselves about whether they wish to be targeted through such exchanges.  The consortium offers its online ad partners tools to streamline the digital marketing process.  Where are the tools for a consumer–so they can determine how they are treated online through these anonymous and impersonal systems?  In its haste to advance online behavioral targeting, the new OpenRTB consortium appears to have left privacy and consumer choice and control aside. Regulators, privacy and consumer advocates and others will need to maintain a close watch on the new online targeting alliance.  Meanwhile, we hope that this new group will adopt new consumer protection safeguards–and not rely on the flimsy argument that groups such as the NAI and triangled icons somehow protect the public.

Online Pharma Watch: BeWell.com/More disclosure required from Dr. Nancy Synderman

BeWell.com is a “new social network founded by America’s top doctors,” including NBC News Chief Medical Editor Dr. Nancy Synderman and others.  The site is organized around “communities” that address issues involving important health concerns, including breast cancer, reproductive health, aging, etc.  BeWell is owned by “by LLuminari, Inc, an innovative health media company…”  LLuminari says on its website that “Our programs are made possible by leading companies who support providing consumers and employees access to the knowledge of the best and brightest experts. Our sponsors have included:

Johnson & Johnson GlaxoSmithKline General Mills PepsiCo Stonyfield Farm Newman’s Own Smith Barney Eileen Fisher PacifiCare Health System United Healthcare Genomic Health PriceWaterhouseCoopers

BeWell’s privacy policy doesn’t really explain how the data it collects might be used for its advertising. The site provides important information for its users.  But we need to see more disclosure on the site about exactly the role its “sponsors” play, such as with its “Pfizer Support Center,” “Health Tools” featuring “Oncotype Dx” (Genomic Health) and the “Healthy Sight Resource Center” sponsored by Transitions.  As an NBC journalist, Dr. Synderman should also disclose when doing her reporting the connections with the advertisers and sponsors of BeWell and LLuminari.  Online health sites, especially given their public interest purpose, should be transparent about their relationships with drug companies and other health marketing sponsors.

Neuromarketing & Privacy: German Data Protection Authority Enacts Safeguards

We have long been sounding the alarm over the role of neuromarketing in advertising, especially for online marketing.  We are gratified that the Data Protection Authority in Hamburg Germany, according to this law firm post, just imposed safeguards on the role of neuromarketing.  It explains that [excerpt]: “[O]n November 23, the data protection authority (DPA) of the German Federal State of Hamburg imposed a €200,000 fine [link in German] against the Hamburg-based savings & loan Hamburger Sparkasse due to violations of the German Federal Data Protection Act (the BDSG) for, among other reasons, using neuromarketing techniques without customer consent…Indeed, according to the head of the Hamburg DPA, Prof. Johannes Caspar, the intent was to send a clear signal to the market against the use of modern neuromarketing and comparable methods in violation of data protection law.  The case also clearly illustrates that German regulators are willing to enforce the new data protection regime and are well prepared to impose significant fines upon companies rather than giving them merely a warning notice…The decision of the Hamburg DPA may also attract attention beyond Germany and influence the interpretation of data protection laws in other countries, in particular with respect to the compliance of neuromarketing and brain sciences techniques with data protection laws.  Due to the sensitivity of such activities, it is likely that regulators in the EU will follow the approach taken by the Hamburg DPA.”

FTC/FDA Need to Protect Health Privacy Online–Look at what personal medical info one health site asks

The online marketing of health and medical related services require urgent and serious scrutiny–from regulators, the Congress and the Obama Administration.  CDD’s recent complaint on digital pharma marketing and advertising addresses this issue.  But action is required.  Take for example, an email we received today from Quality Health/Allergies, promoting a “guide to help you sleep.”  In order to get the guide, you are asked to provide information.  Look at this one example and ask yourself.  Aren’t safeguards required to govern the collection and use of such information.  The newsletter features the TRUSTe seal which should raise questions about how effective that group’s work is protecting privacy.

Even more questions, inc. ones about specific drug brands, was asked that what we have below.  Here’s an excerpt from the questionnaire:

Simply respond to the questions below to continue.
1.     Are you (or someone in your household) going to the doctor in the next 30 days to discuss any of the following conditions below?
Alzheimer’s Disease (Moderate-to-Severe)
Bipolar Disorder
Child with Asthma
Chronic Dry Eyes
Diabetes
Osteoarthritis
Parkinson’s Disease
Rheumatoid Arthritis (Moderate-to-Severe)
Sjögren’s Syndrome
Other Condition
No appointment scheduled
Are you the Alzheimer’s Disease patient or the caregiver?
Patient
Caregiver
Can QualityHealth send you a FREE email series with important questions to ask the doctor to properly manage the Bipolar Disorder condition?
Look for this short email series over the next few weeks – check your inbox.
Yes
No
Can QualityHealth send you a FREE email series with important questions to ask the doctor to properly manage the Asthma condition?
Look for this short email series over the next few weeks – check your inbox.
Yes
No
Can QualityHealth email you a FREE email series with important questions to ask the doctor to properly manage the Dry Eyes condition?
Look for this short series over the next few weeks – check your inbox.
Yes
No
Does this person also have any of the following symptoms?
Chronic fatigue
Depression
Lack of energy
Excessive Sleepiness
Snoring
Poor concentration
Yes
No
Can QualityHealth send you a FREE email series with important questions to ask the doctor to properly manage the Osteoarthritis condition?
Look for this short email series over the next few weeks – check your inbox.
Yes
No
Can QualityHealth send you a FREE email series with important questions to ask the doctor to properly manage the Parkinson’s Disease?
Look for this short email series over the next few weeks – check your inbox.
Yes
No
Can QualityHealth send you a FREE email series with important questions to ask the doctor to properly manage the Sjögren’s Syndrome?
Look for this short email series over the next few weeks – check your inbox.
Yes
No
2.     Do you or a loved one feel tired or sleepy because of: (Check all that apply)
A non-traditional work schedule (includes working nights, evenings, rotating or split shifts or anything other than a normal day shift)
Shift Work Disorder
Obstructive Sleep Apnea, which is treated with a breathing device
Narcolepsy (sudden uncontrollable urge to sleep)
None of the above
3.     Have you or someone you love been diagnosed with Atrial Fibrillation, or AFib?
Yes, I have
Yes, a loved one has
No
4.     Do you or someone in your household have Diabetes?
Yes, myself
Yes, someone in my household
No
5.     Do you have any of the following conditions?
(Please check all that apply)
Diabetes
High Blood Pressure
High Cholesterol
Heart Attack
Stroke
Unstable Angina
Smoking or Used to Smoke
PAD (Peripheral Artery Disease)
None of the above
6.     Do you or someone you care for have Psoriasis?
Yes, myself
Yes, someone I care for
No
7.     Do you have any of the following conditions?
Major Depressive Disorder (MDD)
Generalized Anxiety Disorder (GAD)
Social Anxiety Disorder (SAD)
Panic Disorder (PD)
None of the above
8.     Have you or someone you care for been diagnosed with Cancer?
Yes
No
9.     Do you have a child (under 18) who has been diagnosed with Attention Deficit Hyperactivity Disorder (ADHD)?
Yes
No
10.     Have you or someone you care for had a “mini-stroke” (transient ischemic attack or TIA) or stroke due to a blood clot?
Yes, myself
Yes, someone I care for
No

Marketing Industry Leader dismisses new self-reg program for online behavioral targeting. Merely a “stop-gap” and “partial solution” measure

Jack Myers is a long-time leader in the marketing and ad industry.  Writing today on the new FTC report, Myers explains that “The recently implemented Forward i logo, while ambitious and well-intentioned, is a stop-gap measure intended to demonstrate to federal regulators and Congress that the industry can police itself.  Ultimately, the solution is likely to evolve to a universal opt-out model combined with a requirement that consumers proactively override their opt-out choice on a one-by-one basis – essentially a reversal of existing self-regulation…the industry cannot continue to assume that partial solutions will meet the requirements of regulators.“

Google’s Privacy Challenge: Face up to your online advertising culture of data collection

Google keeps making new announcements about how it will–finally, this time!–protect consumer privacy.  This latest PR salvo–after the Canadian Privacy Commissioner ruled that Google had “contravened Canadian privacy law when it inappropriately collected personal information from unsecured wireless networks in neighbourhoods across the country”– is designed to help quell EU and US policymakers enacting safeguards that would rein in some of company’s data collection practices.  Yesterday’s announcement illustrates one of Google greatest problems: it can’t admit that its entire business model is based on collecting infinite amounts of information on individual consumers.  Google’s most recent acquisitions–Admob, Invite Media, and Teracent, for example–are designed to generate new data-mining based revenues.   Google is trapped in its own success: it can’t step off the digital data collection treadmill with Facebook and others in hot pursuit.  But consumers and citizens should expect more honesty coming from the “don’t do evil” web giant–not just new promises to better behave.

Google has named Alma Whitten to head a team designed to better address privacy issues.  During her recent testimony before the Senate Commerce Committee, Dr. Whitten didn’t provide the kind of critical analysis required on the impact of Google’s online ad business and privacy.  Doing so now–and honestly addressing and redressing the problem–will be a key test.

Five Ways to Protect Privacy

[a version we wrote of this ran in Multichannel News]
Five Ways for Digital Marketers to Protect Consumer Privacy

If George Orwell were writing today, 1984’s Winston Smith would be working as a “Doublespeak” specialist crafting privacy policies and creating self-regulatory regimes.  That’s not what consumers and citizens need in the interactive marketing era.   All Americans should have their privacy respected and protected when they go online—including when they use mobile phones.

1.     Tell your users what you actually say to your advertisers—about how the profiling and targeting process really works.  There is a disconnect that is unfair and deceptive between what companies say in their privacy policies and pitch to their clients and potential partners.   Be honest about the “360 degree” ways you engage in online marketing.

2.     Don’t collect information and target consumers based on their interests in finance and health.  These two most “sensitive” categories should be opt-in only.   When consumers go online for loans, credit, mortgages, and health concerns they require the upmost privacy.  Although online financial, health and so-called lead-generation advertising is big business, consumers should not be forced to have their online financial and health behavior stealthfully-tracked and compiled.  The risks to consumers are great if we don’t develop special rules for this data.

3.     Racial and ethnic profiling data should also be opt-in. Hispanics, African-Americas, Asian-Americans and other minorities are increasingly the focus of a growing behavioral targeting and online marketing apparatus.  In the “offline” world, we have witnessed a disturbing use of racial profiling practices to discriminate against individuals.  In today’s online environment, users are being identified as being a member of a racial or ethnic group without either their awareness or consent.  While we all want to see the growth of diversely owned online publishing, it should not be done at the expense of civil liberties in the digital era.  We must prevent the growth of online racial profiling, that when tied to income, geography and other data can be used to create 21st Century forms of discrimination.

4.     Don’t use neuromarketing and other subliminal and subconscious-based advertising.   Fortune 1000 advertisers and online marketers such as Microsoft, Yahoo and Google are using new forms of ad testing and development involving the latest tools of neuroscience, such as fMRI’s and EEGs.  Neuromarketing’s goal is to directly influence a consumer’s subconscious, and when combined with the power of online data targeting,  offers powerful—and frightening—new forms of manipulation.

5.     Users need to consent to having their profiles be bought and sold on so-called online ad exchanges.  Selling off the right to target a consumer online, via real-time auctions that happen in milliseconds, is dehumanizing.  Nor should we permit the growing combination of offline and online databases to be used for targeting, including via these new digital auction houses.

Interactive marketing is now a fundamental operating principle for the cross-platform media economy throughout the world.   But right now, it’s a digital “wild west” that doesn’t serve the interests of consumers, citizens and most marketers.

Behavioral Targeting is About Tracking an “Individual,” Explains Online Marketer

The online ad industry and lobby better stop saying that cookies and other forms of data collection aren’t personally identifiable–so-called PII [personally identifiable information].  As we know, behavioral targeting (BT) identifies, profiles, tracks and targets an individual.  Here’s just one example of how online marketers discuss what BT really is when they are talking among themselves and to clients (our emphasis):

What is behavioral targeting?
Behavioral targeting is a technique used by online advertisers to improve the effectiveness of their campaigns by increasing the relevance of product offers and promotions on a visitor-by-visitor basis.

Behavioral targeting uses information collected on an individual’s web-browsing behavior, such as the pages they have visited or the searches they have made, to select and deliver online ads to the users who are most likely to be interested…As the effective mixing and mining of audience data has become increasingly important to online advertisers, the role of behavioral targeting and retargeting have grown more central…The typical approach to behavioral targeting starts by using web analytics to group visitors into discrete channels. Each channel is analyzed and a virtual profile is created to for each channel…
Most platforms identify visitors by assigning a unique id cookie to each and every visitor to the site, allowing them to be tracked throughout their web journey.  An example is a user who visits content about auto insurance, clicks on an insurance advertiser button or banner, and then searches for “auto insurance.” This user would be assigned to the insurance prospect channel and the next time that user goes to Yahoo they will see ad for insurance…