MySpace expands ability for marketers to track and target "community" members

MySpace has launched what it calls its “community builder platform for [the] advertising community.” Here’s what they say it does (our emphasis):

The new platform gives MySpace advertisers the ability to build, maintain and customize brand profiles while also providing guaranteed valuable analytics to help them gauge campaign performance and make real-time adjustments to maximize effectiveness. The platform is currently being beta tested by Deep Focus

“Community Builder allows our clients to connect with potential brand evangelists in an unprecedented way,” said Ian Schafer, CEO of Deep Focus. “The flexible platform provides access to solutions and value propositions that enable brands to engage with a new generation of consumers and the freedom to update and manage communities in real-time. It’s a powerful tool that can help build community literally — and figuratively.”

The Community Builder advertising platform will be available in the US and builds upon MySpace’s industry leading advertising model, which includes customized communities, multi-platform integrated marketing campaigns, and the new advertising platforms HyperTargeting and SelfServe which empower users such as small business owners, bands, and politicians to purchase, create and analyze the performance of ads throughout the MySpace network.”

Red Herring reports that “… Community Builder…allows marketers to analyze the impact of their online ad effort and respond to it by doing things like updating blogs, studying finely tuned traffic data, changing videos, shifting ads, or testing messages…“One of the major complaints about social network ads has been the metrics, as marketers complain that they have no return on investment to show for their campaigns,” said Ian Schafer… “This gives us 24/7 access to the process of building communities.”

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U Penn Prof. Joseph Turow responds to the

Randall Rothenberg of the Interactive Advertising Bureau lobbying group wrote a commentary where he made a number of misleading statements. He incorrectly characterized the work of Professor Joseph Turow. Prof. Turow, a leading academic expert of the online marketing industry, is on the faculty of the Annenberg School for Communication, University of Pennsylvania. Here is Professor Turow’s response:

In one sentence, Mr Rothenberg manages to make two fundamental misrepresentations. What I really say on page 2 of my 2006 book Niche Envy (where the quote originates) explicitly relates to marketers use of surveillance technologies without consumers understanding: “Over the long haul, however, this intersection of large selling organizations and new surveillance technologies seems sure to encourage a particularly corrosive form of personal and social tension.” Nor do I anywhere lament the passage of the three network universe. For example, I explicitly state in Breaking Up (on page 199, for example) that three network era had its own forms of social exclusions and state that “that “the proper response to this hypersegmentation of America is not to urge a return to the mass-market world of the 1960s and 1970s.” My conclusion: when I see Mr Rothenberg quote someone I will be sure to check the source to make sure the passage has not been wrenched from its context. I should add, too, that I accept the need that digital interactive media have for target marketing and database marketing. But there are many creative ways to meld data analytics and their implementation with openness and public engagement. I fear that Mr Rothenberg”s policies and writings indicate he will lead this important organization in directions that are misguided for marketers and for society.

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The Online Ad industry Must Respect & Protect Adolescent Privacy

Last week, a coalition of child advocacy, health and media groups asked the FTC to develop safeguards for digital marketing that would protect adolescent privacy online. This will be a major focus of the Center for Digital Democracy over the next year or so, building on our work during the 1990’s which led to the passage of the Children’s Online Privacy Protection Act (COPPA). COPPA helps protect the privacy of children under 13 years of age. Adolescents are now a principal focus of the online data collection and targeting system, a process which raises many ethical and health-related issues. We call on responsible online ad industry leaders to work with us to enact meaningful policies that protect adolescent privacy on websites, social networks, online gaming, etc. We are pleased that some major online ad companies have privately said to us that they recognize there is a problem. We will work with them and other responsible digital marketers. Policymakers from both congress and the FTC also recognize adolescent privacy is an important concern. It is a bi-partisan one as well (Senator John McCain was the co-sponsor of COPPA). The time to develop a meaningful framework that respects the autonomy of adolescents, but protects their privacy, is now

Microsoft-Yahoo/Google-Yahoo M&A: More data about you for targeting

excerpt from Abbey Klaassen of Ad Age’s interview with media execs, including Augustine Fou, senior VP-digital strategy at MRM Worldwide and Nathan Woodman, VP-strategic development at Havas Digital:

MR. FOU: Yahoo has a lot more personal information through its other services for which you registered. So they can cross-target with demographic information … and because Google doesn’t have similar information, Yahoo actually has better proprietary data at this point in time…

MR. KILKES: The power of optimization is that you can test all that stuff. We’ve seen that Yahoo’s registration offering leads to much more engaged audiences vs. what we have see through, say, a Google gadget. That leads us to believe that combining registration data with behavioral is just narrowing the funnel a lot more efficiently for us.”

from: So Much Info, so Much to Test Out. Ad Age. Aril 14, 2008 [sub required]

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The Associated Press on the road to ruin: Murdoch and Zell join board. And its Chairman Dean Singleton needs to be sent to rewrite

Two items from today’s Editor and Publisher:

First: “Rupert Murdoch and Sam Zell, two media figures who led major newspaper acquisitions in recent months, are among four new members joining the board of directors of The Associated Press.”

and: “After addressing the journalists gathered at the annual Associated Press luncheon in Washington, D.C., today, Sen. Barack Obama took a few questions. The last one from the audience, delivered via AP chairman W. Dean Singleton was related to how to troops to Iraq and the threat posed by, as Singleton put it, “Obama bin Laden.”

and so it goes.

–30–

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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 “personally identifiable information” and “non-personally
identifiable information ” that is used for “online preference marketing.”
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 General’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 plaintiffs’ 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

Murdoch’s MySpace uses behavioral targeting to harvest data of its users, including when they are having a baby or going off to college

From the mouths of data collecting social network executives, via Online Media Daily:

“…Heidi Browning, the senior vice president of client solutions for Fox Interactive Media, cited some impressive results from behavioral targeting using data from MySpace–including a 733% lift in brand awareness, 800% lift in recall, 152% increase in brand favorability, and 179% increase in purchase intent.

She added that social networks like MySpace are ideal places to harvest data for behavioral targeting because consumers voluntarily provide detailed information about a host of behaviors and attitudes–including, for example, media consumption and brand preferences as well as simple demographic descriptors, age, education, and geographic location. From these, Fox assembled a number of enthusiast and lifestyle segments, broadly grouped in 10 super-segments, with at least 3 million and as many as 10 million members each.

According to Browning, MySpace data can tell marketers when a user “is moving, having a baby, going to college”–but also more subtle information including receptivity to ad messaging at different times of day. With other data sources, like DVR records, she said MySpace information will allow “hyper-targeting” of consumers, delivering the right kind of ad message via the right medium at the right time of day.”

source: “Behavioral Targeting: A Brave New World… Maybe.” Erik Sass. Online Media Daily. Feb. 26, 2008 [reg required]

IAB’s new “Privacy Principles”=A Failure to Protect Consumer Privacy

The IAB has embraced a `circle the data collection and micro-targeting digital wagon’s’ with its new privacy principles. Instead of embracing a policy that truly protects consumer privacy, IAB members are trying to hide behind the same failed approach they have led to governmental inquiries in the US and the EU. The IAB should have adopted rules so that no data can be collected without full disclosure and prior consent of the consumer, as well as other fair information collection principles. The IAB’s proposed new PR campaign to promote the role of interactive marketing will undoubtedly by slick–but won’t be honest. That’s why my CDD will keep telling the FTC, the EU and the public about what really goes on with data collection and digital marketing. These slightly refurbished fox-watching-the-data-hen-house-privacy principles won’t provide any substantive protections for consumers. The failure of the IAB to acknowledge key issues related to sensitive data–including children, teens, financial (think subprime mortgage-related) and health–is a glaring failure of the group’s ability to do what is required to protect consumer privacy.

The IAB is trying to help its members dodge the digital privacy data bullet. But privacy advocates and officials concerned about consumer welfare in the digital age will eventually force the needed changes. What’s sad is that instead of playing a leadership role in the privacy debate, the IAB is attempting to stick with the past. Don’t they realize that change is coming?

Ad Age on some of the methods used with online advertising (inc. for Google & Microsoft)

from Abbey Klaassen’s 2.4.08 article on Microsoft’s proposed Yahoo! takeover, entitled “They’ll still be Chasing Google.” [excerpt]: “The merger could also provide advertisers with a broader suite of online ad offerings and allow them to better integrate their search ads with display, video and even in-game units. In theory, at least, the combination of those formats allows marketers to influence consumers’ opinions about a product or brand, create demand for that brand and fulfill or track that demand through a transaction such as a search. It also allows them to measure and attribute the value of the different types of ads consumers encounter on the path to a purchase — for example whether John Doe has seen a display ad, and is then prompted to search for the product advertised.”