Google Sells To Advertisers: User Profiles for Consumers Looking for Credit Cards [UK]

The new Consumer Financial Protection Board–and the FTC–will have their digital hands full as they begin to investigate the stealth world of online financial marketing.   Disclosure and consumer control has to be built into these applications–but they are not.  Of interest is a trial run by Google in the UK to sell credit cards, part of its move into “comparison” marketing.  According to New Media Age [my emphasis], “Google is testing its own [credit card] comparison product, launched earlier this year.  Currently focused purely on UK credit card providers, it lets users search on Google, click on an interactive ad showing rates from participating advertisers and takes them to a comparison page. Advertisers bid for user profiles that match their target audience and pay on a cost-per-lead basis.”

Take a look at Google’s credit card comparison site; does a consumer know about the advertiser bidding to buy their profile? See also Google similar product selling mortgages here in the U.S.

Attention Shoppers: Google pitches itself to retailers that “one out of five searches on Google is related to location”

Google is promoting its online clout for generating offline sales.  Given its expansion of mobile and location targeting, we think this upcoming panel featuring Google’s “Head of Consumer Goods” is of interest [our emphasis]:

Search terms for consumer packaged goods from “yogurt” to “laundry detergent” to “eyeshadow” have seen double-digit growth, year over year. Why? Today’s consumer actually begins the path to purchase long before she enters the store. She is tech savvy, equipped with Internet speed as well as a smartphone. The new “info shopper” capitalizes on research, reviews, sales, couponing and her online “community” to influence her in-store decisions. Because one out of five searches on Google is related to location, integration of digital in the complete path-to-purchase cycle is today’s shopper marketing game changer. In this session, Google will share data, insights and a case study that demonstrates the positive effect online marketing has on in-store sales.

Understand:

Why the consumer’s changing media and shopping habits necessitate the inclusion of a digital strategy in your integrated shopper marketing plans
How a best-in-class shopper marketing program leveraged strong manufacturer, retail and media integration to drive sales
How search specifically has been proven to drive sale

Google’s new `simplifed’ Privacy Policy: More disclosure and honesty required [updated]

Last week Google announced it was “simplifying and updating” its privacy policies.  As it so often does, the announcement was framed as a `we did for your good’ kind of effort.  “[W]e want to make our policies more transparent and understandable,” it explained, noting that “most privacy policies are still too hard to understand.” But as so often with Google and other online marketers, you have to both read between the digital lines and also analyze what’s really going on.

Google’s revised policy, which takes effect October 3, fails to really explain to consumers/users what’s actually going on.  Like other privacy policies, Google claims that all its data collection is to “provide you with a better experience and to improve the quality of our services.”  But what they really mean–and what the Congress, the FTC and other regulators must require them to disclose–is that they have crafted a wide-ranging system designed to foster personalized data collection and online targeting.  Missing from the revised Privacy Policy (which Google, btw, is pitching to privacy advocates and no doubt others as a  paragon of digital virtue) is any candid disclosure on how its Doubleclick, Admob, Google Display Network, Ad Exchange, Teracent, and other services collect information from and about us.

Google isn’t alone–Facebook, Microsoft, Yahoo and everyone else rely on a purposefully deceptive privacy policy to engage in data collection activities that require disclosure and individual user control.  Google is also reshaping its privacy policy to better capture all the data it can collect across multiple platforms and applications. Here, just for the record, is what Google advertised in Ad Age’s recent Ad Exchange and online advertising guide [excerpt]:  No matter how you define performance, the Google Display Network offers a solution. By bringing more measurability and precision to your advertising, it enables you to create, target and optimize ads based on real-time data, meaning better returns for you.

The Google Display Network helps advertisers and agencies achieve performance at scale by delivering relevant, accountable ads to their target audiences—in more places, more often…Precisely target your audience: The Google Display Network’s technology enables you to find customers based on their interests, sites they visit and when they’re engaging with relevant content via contextual targeting, or show specific messages to users who’ve already visited your site with remarketing…The Google Display Network provides opportunities to advertise in all such environments—feeds, games, mobile, social networks and video streams— enabling you to create an immersive experience for your audience.

PS.  Well, Google just also announced what its interactive display ad system can do for marketers.  How come this isn’t in the privacy policy in understandable language and full consumer control? Excerpt:  Advertising with Google used to be all about four lines of text, on Google.com and on our partner sites. No longer. Did you know that, outside of ads alongside search results, more than 40 percent of the ads that we show are now non-text ads? And that doesn’t include the 45 billion ads that our DoubleClick advertising products serve every day across the web.

We get excited by display advertising for a number of reasons…Teracent’s technology can automatically tailor and select the creative elements in an ad, and adjust them based on location, language, weather and even the past performance of ads, to show the optimal ad.  We’re focused on helping advertisers get the best results from their campaigns—by enabling creative branding campaigns, precise targeting, wide reach and effective measurement. Over recent years, we’ve added a ton of new features to YouTube and the Google Display Network, to help advertisers get—and measure—the results they’re after. From remarketing to Campaign Insights to video targeting on YouTube, we’re building tools that are helping advertisers get great results and enabling them to run some of the most amazing ad campaigns the world has ever seen.

Retargeting 3.0–It tracks and observes a consumer, adds new data–and changes its sales pitch

Yesterday, the New York Times ran a front-page story on retargeting--the practice of stealthily tracking an individual user online in order to keep delivering sales pitches–including for health and financial products.  We gave the NYT lots of information, including how so-called “smart” ads technologies are now melded with retargeting–for so-called “Retargeting 3.0.“  [My CDD and USPIRG, btw, asked the FTC to investigate retargeting back in 2007 and to protect consumers].  Here’s some of what we sent to the Times.

From Criteo:“Retargeting allows you to find your previous website visitors across the Internet and display relevant banners to lead them back to your website to complete their transaction. Bringing ready-to-buy users back to your website after they have left should be a key part of your customer acquisition and conversion strategy. Criteo provides a breakthrough dynamic personalised retargeting solution…Criteo has revolutionised retargeting with the most sophisticated form of dynamic personalised retargeting. Over the past decade there has been a slow evolution of retargeting. This third generation of retargeting enables an advertiser to show each lost visitor a unique banner based on his/her very specific past interactions on the advertiser’s website. This new form of retargeting involves on-the-fly, real-time personalised banner creation and has a dramatic impact on campaign performance.”

Retargeting data now incorporates user information from outside demand side platform sources, and can the rights to retargeting you can be sold to the highest bidder via online ad exchanges, such as the one run by Google.

A recent MediaPost panel sums up how retargeting has evolved:
Re-Thinking Re-Targeting 
Re-targeting continues to be the tried and true workhorse of behavioral targeting. Tagging and retrieving someone who has already shown an interest in your business is about as simple a use of the BT model as it gets. But it is not so simple any more, and like everything else in this complex ad economy, re-targeting too is in for a upgrade. Dynamic ad creation driven by recommendation engines offers new opportunities to marketers to be even more effective. Demands for greater accountability, control over placement and clearer attribution press the ad networks and tech providers to provide new levels of transparency. And just like everyone else in the ad economy, re-targeting is working its way through questions about metrics and pricing, do marketers optimize and pay according to clicks, conversions, purchase? And what role does retargeting now play in this larger field of audience creation and the age of the DSP?

Retargeting illustrates how online marketers have deployed armies of digital private detectives to shadow us online.  They watch us closely, take notes, even learn about us, and then appear when we don’t expect it.  Consumers shouldn’t have to confront such digital surveillance.  Retargeting is “Exhibit A” in making the case to lawmakers that consumer privacy online should be protected.

Questions should also be raised about retargeting and consumer protection.  Should I get a better discount because the data collected about me indicates I spend more or live in an expensive neighborhood? Or that because they believe I am a certain ethnicity, I might spend more on certain products.  Retargeting is a non-transparent marketing technique that raises important consumer protection issues about the use of digital advertising.  Consumers require a fair deal online.

PS:  Here’s how Google explains its retargeting service–which in typical Silicon Valley meets George Orwell fashion, it calls “remarketing’ [for the Google Content Network]: “Remarketing is extremely effective because it targets a highly-relevant audience. With it, you can target users who:

  • have visited your website or viewed specific product categories on your site
  • didn’t convert or who abandoned their shopping cart
  • have converted (in order to up- or cross-sell to them)

If you’re already driving traffic to your site through other means, like contextual targeting or your search ads, remarketing is a great complement to those efforts to increase your return-on-investment (ROI).

and we believe in fair play.  Here’s what Microsoft says its “remessaging” service can do:   “After consumers visit your site, see one of your campaigns or click through on an ad, remessaging offers several ways to continue the conversation and ensure that your message is seen by the people to whom it matters most.  With site remessaging, you can re-engage a consumer to complete a purchase or further engage with your brand. Creative remessaging drives brand perception, awareness, and favorability, and enables advertisers to re-engage audiences who have seen or clicked on an existing campaign. Email remessaging complements email assets such as newsletters by placing tags and accessing the same email recipients to reinforce your message to a loyal audience.

and Yahoo!:  “Enhanced Retargeting, which combines standard site retargeting with dynamic ad generation. For example, users who visit an airline website to check offers for flights from SFO-JFK can be served a personalized offer for that specific flight when they visit a page within the Yahoo! Network. In a recent trial, a market-leading online travel company saw a 230% increase in total bookings and a 651% increase in click-through rate when comparing Enhanced Retargeting to their traditional retargeting campaign.  Recognizing the need for more focused audience segmentation and improved control, Yahoo! Search Marketing will offer advertisers Enhanced Targeting capabilities for Sponsored Search and Content Match programs. New features are designed to extend the advertiser’s control over where and when an ad is shown at both the campaign and ad group level, including what time of day and day of the week an advertiser would like campaigns to run (ad scheduling) and what age and gender they’d like to reach (demographic). Advertisers will be able to vary their bids for different segments in order to increase their ability to reach the desired audience.”

New Google Exec Rohit Khare has warned: “our social networks have traded away our privacy for mere “privacy theater”

Google just acquired Angstro and hired its co-founder Rohit Khare. Khare will help Google create its new social network.  Last December, Khare warned about the growing lack of privacy online [excerpt]: “When RockYou can stash 32 million passwords in the clear; when RapLeaf can index 600 million email accounts; and when Intelius can go public by buying 100 million profile pages; then our social networks have traded away our privacy for mere “privacy theater.”…none of the social networks that we’ve integrated with has an API for reading email addresses — but all of them have no problem asking you to “Invite your friends!”  After all, most social networks remain hypocritical enough to phish passwords to other social networks themselves as soon as they ask you to “Invite your friends” for their own viral growth!
Putting aside the hypocrisy of phishing passwords to scrape those friends’ email addresses in the first place, the subtler flaw is that social networks are more than happy to search their member database for those addresses to share a list of suggested friends. That’s how a Rapleaf could take a mailing list, pretend that those are all friends of theirs, and slowly accumulate a “reverse phonebook” that maps emails to social network profiles.”

Given Google’s own problems addressing consumer privacy, we will be watching closely to see if Khare’s concerns are reflected in what “Google Me” (or whatever their social network gets called) really addresses the problem.  That will need to include enabling users to control the data used for digital marketing and advertising, as far as we’re concerned.

Google: Creating a “dynasty” in online data ad targeting

From the Connected Marketing Week in SF, via ClickZ:  Google is simultaneously attempting to fill the role of ad exchange, ad network, DSP (through its Invite Media acquisition), and media agency…Michael Rubenstein, president of AppNexus and the former head of Google’s ad exchange efforts, said Google has been admirably fair and transparent. But he said that could change.”Google is putting together the pieces to form a dynasty,” he said. “So far they’re behaving pretty well as far as keeping the ecosystem open to everybody, probably because they need to. But we’ll see what happens over time as they accumulate more market power.”

Google’s Mobile Ad Plans–A Key Reason Why No Net Neutrality for Wireless [Follow the Mobile Ad $$$]

Just a quick reminder to network neutrality supporters that Google has made a multi-billion dollar investment in its ability to deliver mobile ads.  That’s a key reason for its “let’s make a digital deal” with Verizon.  For example, in 2007 Google acquired  Doubleclick:“DoubleClick Mobile is an ad delivery system for mobile websites that delivers dynamic, interactive ads to mobile web pages based on specific criteria as determined by you. It supports a wide range of devices and boasts a full management and reporting suite. Now publishers can deploy mobile advertising with the same confidence and control as online display ads…DoubleClick Mobile enables you to manage and report on your mobile advertising campaign through every click. We’ve made it easy to set campaign dates, define mobile specific targeting criteria and get full reports on all mobile campaigns…records information on third-party destination sites…DoubleClick Mobile features support for a variety of ad networks to enable you to sell more of your inventory and maximize possible yield…”

This year Google acquired Admob:  “AdMob offers brand advertisers the ability to reach the addressable mobile audiences. Our innovative ad units will carry your brand messaging onto the top mobile sites. As one of the leading brand mobile advertising marketplaces, we have the products and the people to help you meet your campaign needs…Mobile advertising provides you with targeted access to mobile users, and is easy to buy and measure…AdMob stores and analyzes data from each ad request to serve the most relevant ad possible. AdMob Mobile Metrics offers a snapshot of this data to provide insight into trends in the mobile ecosystem.”

And don’t forget Google Adsense for mobile:  “AdSense for Mobile helps you earn money by displaying relevant Google ads alongside your mobile web pages or within your mobile applications.”  Or YouTube Mobile.

PS:  eMarketer got it right.  The Google/Verizon deal is about preserving mobile as a controlled digital territory: “By 2014, eMarketer expects the number of mobile internet users in the US to reach 142 million, a near tripling of 2008 levels. The total pool of internet users, which includes mobile and wired access, will increase over the same time period from 203 million to 250 million. By 2013, more than half of all US internet users will be accessing the web through a mobile network, either alone or in addition to wired usage.”

Google and Verizon Digital Double-deal-making or Net Neutrality:”Get Lost!”

Neither Google or Verizon should be privately negotiating the future of the Internet by private, closed-door, dealmaking.  Both companies have a tremendous conflict of interest–because they are involved in distributing multimedia content and collecting user data to target consumers across the Internet, mobile and digital TV platforms.  To exempt wireless from any safeguards is a good example of how self-serving this deal is–everyone knows that mobile will operate the same way the wired Internet does–in terms of behavioral targeting, for example.  That’s why the “deal” announced has loopholes that will benefit their special interests over others online.  What’s needed are strong federal safeguards that keep the Internet open and free from under the influence of the most powerful online giants…This deal was written with purposeful “digital” loopholes so companies like Verizon and Google, and other well-endowed players,  can dominate the future of the Internet.  It potentially would enable them to create the kind of special first class web distribution service that undermines the goals of network neutrality.  Instead of the Internet, we have a special interest web.

Google’s interest in better bandwidth access for video and interactive ads—do negotiations with Verizon reflect recent changes for YouTube?

Google recently made an announcement that will require likely greater bandwidth for Google’s YouTube.  According to its July 9, 2010 post, “Today at the VidCon 2010 conference, we announced support for videos shot in 4K, meaning that now we support original video resolution from 360p all the way up to 4K…We’re excited about this latest step in the evolution of online video.” Also perhaps relevant to its Verizon dealmaking is Google’s move towards long-form ad supported videos on YouTube, to better position itself as a commercial video provider. If they want to ensure they are first in the `que’ with other entertainment companies, then reversing its position on network neutrality is part of their business plans.  They are ultimately in the same show biz/advertising space as everyone else is.   Btw, given that the media/telecom companies really don’t see a difference when marketing and distributing across multiple platforms, inc, mobile, it’s outrageous mobile would be exempt from network neutrality rules.  But perhaps blame it on Google’s Admob acquisition and its [and everyone else’s] plans for mobile location ad targeting!

Here’s an excerpt from today’s Ad Age article on Google’s new higher resolution and more bandwidth system for YouTube:  “YouTube recently announced support for “4k video,” meaning video files with a dimensional size up to 4096 x 2304 pixels — in other words, much larger than your computer can handle.  Online video is booming, and marketers are still trying to figure out how to create the optimal user experience and achieve the best results for their campaigns…YouTube mentions that watching videos in 4k requires an “ultra-fast high-speed broadband connection,” but this is actually the least-important requirement. While users on slower broadband connections can always wait for enough of the video to download and buffer before watching it (though why would a marketer force consumers to do that?)…

Google tells investors via SEC: New privacy laws could be “inconsistent with our data practices” And the “hundreds” of engineers they have working on display ad technology

Google’s 10Q second quarter report just filed at the SEC has an interesting reflection on how the online ad giant views the privacy issue.  It wrote that:

Regulatory authorities around the world are considering a number of legislative proposals concerning data protection. In addition, the interpretation and application of data protection laws in Europe and elsewhere are still uncertain and in flux. It is possible that these laws may be interpreted and applied in a manner that is inconsistent with our data practices. If so, in addition to the possibility of fines, this could result in an order requiring that we change our data practices, which could have an adverse effect on our business. Complying with these various laws could cause us to incur substantial costs or require us to change our business practices in a manner adverse to our business.

And a somewhat related angle–Google’s focus on generating more ad dollars online.   Brandweek reports, in an article on all the venture investment going into expanding online targeting that:

Neal Mohan, the vp of product management at Google who leads its display ad efforts, believes the display ad market could be five times the size it is today, if the system for buying ads was more efficient and the performance measurement was better.

“It can be done, frankly, a lot better than it is today,” Mohan said, noting Google now has “hundreds” of engineers working on display advertising technology.

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