Vint Cerf, “Chief Internet Evangelist,” Touts Google’s Brand Building Potential

Everyone, it appears, is expected to help Google sell its advertising and brand-building services to new clients. Even when they have the title as a “father” of the Internet. See this video interview of Vint Cerf from a May 2008 event in Singapore. It illuminates a number of Google’s advertising and marketing strategies, including using the power of social media to “virally” promote brands. Here’s a transcript:

“Ogilvy Insights: How can brands tap into the social media phenomenon? An Ogilvy interview with Vinton G. Cerf, Google’s VP & Chief Internet Evangelist. Thursday 22 May, 2008 – Singapore.

Vinton G. Cerf: “Ok, so here’s an interesting phenomenon: We know that you don’t read every book that’s published, you don’t see every movie that’s produced, you don’t watch every television program and every radio program. Something is helping you decide what to look at, what to read.

Part of that something, we’ll call advertising information. And I want to make sure that we recognize that this is information. We call it advertising when we’re not interested in it. When we’re interested in it, it’s information. What Google wants to do is to make sure that the information that you get, that comes from advertising sources, is interesting to you, not disinteresting.

And so let’s think now as a brand; the brand thinker says “well, I need to get in front of as many people as possible so they are aware of my existence and why my products and services should be attractive to them. But the way people filter their interests is to listen to what other people have to say – their friends, their families, their teachers and so on. So we need to take advantage of that filtering mechanism. One way to do that is to make sure that those people whose opinion you listen to, that tell you what movies to watch, what books to read or what products to buy, know about my brand. Now, how to I go about doing that? Well one way is to do the traditional way of somehow plastering your logo up everywhere you possibly can, but that’s a shock dam… (not sure what he says here)

The more interesting this to do is to get your brand in front of someone who has some authority and interest in the products and services associated with that brand, so that person now becomes an anchor and whose opinion now counts in his or her circle of friends. So we now need to identify which people are the opinion makers in these various social groupings.

How can we do that? Well, Google in a way has a tool which helps us do that. Because the way we present advertising information is to put it up only if we think it is really of interest to that party. And in fact the thing that makes our advertising mechanism so valuable is that we are pretty good at getting an ad that someone will click on in front of that person. Their interest level is indicated by the fact that they clicked on the ad. I’m not gonna click on an ad I’m not interested in, that’s advertising. If I click on it, it’s information. So we have a built in filter to find the people who are interested in this particular brand or in the products associated with it.

So now what we need to do is to help the person who clicked on that ad, become an opinion maker. And one way to do that is to say; “Well, that if that person is part of a social network, then the fact that they clicked on the ad gives me an opportunity to give them a tool for making their interest in my brand known to their friends”. So when you look at OpenSocial, you discover mechanisms in there that allow people to tell their friends or draw attention to their friends to things that they have seen that they think their friends would be interested in. So the more that we can facilitate that communication, the more powerful this particular method of spreading knowledge of brands is gonna be.”

Google’s “Policy Fellowships”–Self-Serving Efforts to Help Ward Off Privacy and Online Marketing Protections?

Google has selected 15 organizations for its 2009 “Google Policy Fellowship.” Fellows are funded by Google and will work on “Internet and technology policy” issues over the summer. Take a look at some of the groups it selected and what they say the projects will be (and their positions on Internet issues). And then ask–is Google working to help undermine the public interest in communications policy? Think online privacy and interactive marketing as you read these following excerpts from a number of these groups:

“The Competitive Enterprise Institute is a 501(c)(3) non-profit public interest organization dedicated to advancing the principles of free enterprise and limited government. We believe that individuals are best helped not by government intervention, but by making their own choices in a free marketplace…Electronic privacy: CEI seeks to reframe the online privacy debate in terms of the potential benefits to consumers of greater information sharing, transparency, and marketing. Fellows will explore competing privacy policies and how they are evolving as the public grows more aware of privacy risks. This research will also encompass privacy-enhancing technologies that empower consumers to safeguard personal data on an individualized basis.”

“The Progress & Freedom Foundation (PFF) is a market-oriented think tank that studies the digital revolution and its implications for public policy… Online Advertising & Privacy Policy Issues: PFF defends online advertising as the lifeblood of online content and services, particularly for the “long tail,” and emphasizes a layered approach to privacy protection, including technological self-help, user education, industry self-regulation, and enforcement of existing laws, as a less restrictive—and generally more effective—alternative to increased regulation.”

“The Technology Policy Institute is a think tank that focuses on the economics of innovation, technological change, and related regulation in the United States and around the world… Privacy and data security: benefits and costs to consumers of online information flows, and the effects of alternative privacy policies on consumers and the development of the Internet.”

“The Cato Institute’s research on telecommunications and information policy advances the Institute’s vision of free minds and free markets within the information policy, information technology, and telecommunications sectors of the American economy…Information Policy: Examining how increased data sensing, storage, transfer, processing, and use affect human values like privacy, fairness and Due Process, personal security, and seclusion. Articulating complex technological, social, and legal issues in ordinary language. Promoting the policies that protect these human values consistent with a free society and maximal human liberty.”

Google is also funding fellowships at other groups, including the partially Google funded Center for Democracy and Technology. The CDT connected Internet Education Foundation (which helps run the Congressional Internet Caucus, where Google is a corporate Advisory member) also will house a Google Fellow. There are a few public interest groups hosting Fellows that have an independent track record, including Media Access Project, EFF, and Public Knowledge. But awarding Fellowships to groups which will help it fight off responsible privacy and online marketing safeguards provides another insight into Google’s own political agenda.

New AT&T-funded “Future of Privacy” Group: Will it Support Real Privacy Protection or Serve as a Surrogate for Self-regulation and Data Collection?

A new group co-directed by former DoubleClick and AOL chief privacy officer Jules Polonetsky, called the “Future of Privacy Forum,” has been announced. It is connected to the law firm representing AT&T–Proskauer Rose–which has a considerable practice in the online marketing and data collection area. Other backers include Intel, General Electric, IBM and Wal-Mart.

We are concerned, however, that the role of the Forum is to help discourage Congress from enacting an opt-in regime for data collection. Both ISPs–such as AT&T, Verizon, Comcast and Time Warner–as well as online advertising companies such as Google/DoubleClick, Yahoo, and Microsoft must be governed by privacy laws which empower and protect consumers. The role of ISPs in any data collection for targeted online marketing, in particular, requires serious analysis and stringent safeguards. AT&T, Google, Microsoft, Comcast, the online ad networks, and social media marketers (to name a few) must be required to provide meaningful disclosure, transparency, accountability and user control (with special rules governing health, financial and data involving children and youth). Self-regulation has failed. If the Future of Privacy group is to have any legitimacy, it will work to support serious federal rules. But if it trots out some sort of voluntary code of conduct as a way to undermine the growing call for real privacy safeguards, this new group may soon be viewed as beholden to its funders and backers.

Google’s new funding program for Academics: $ for studies on “Brand Development,” Click Generation” and “for moving traditional video spots from broadcast to broadband”

The advertising industry is engaged in a growing research effort to push the boundaries of marketing. It wishes, for example, to reach deeply into our unconscious mind in order to generate a range of behavioral responses. Marketers are exploring how the new tools of digital advertising can influence consumer emotions.

For example, Google is now engaged in consumer neuroscience research to make its YouTube ads more effective. But Google wants more academic help so it can improve its digital marketing prowess. So Google and global ad giant WPP have joined forces to create “a new research program to improve understanding and practices in online marketing, and to better understand the relationship between online and offline media.” The program will be run by a trio of scholars, including Google’s own Hal Varian, Professor John Quelch, senior associate dean of Harvard Business School (who is a a non-executive director of WPP), and Professor Glen Urban, former dean of the Sloan School of Management at the Massachusetts Institute of Technology. Varian told DM News that “We want to encourage more research about how online and offline media work together to influence consumer choices. We think that such research will contribute to more effective and more measurable advertising performance.” DM News also reported that Mark Read, CEO of WPP Digital and WPP’s director of strategy explained that “[T]he industry, our clients and our companies will benefit from the application of some of the world’s finest academic research minds into how online media influences consumers.”

Don’t expect, by the way, any grants to be awarded that examine the ethical dimensions of interactive marketing; or new threats to personal privacy and autonomy; the implications of Google’s growing global control over online ad revenues on publishing; or the negative environmental and social consequences of promoting a digital marketing system which could lead to over-consumption.

Here are some of the research questions Google hopes will draw academics into its program:

    • How does a brand establish a framework for assessing how much should be spent online? How much advertising should be directed at brand development versus specific click generation?…
    • How do you set digital advertising budgets and tactics when in intensively competitive product categories?…
    • What are good guidelines for moving traditional video spots from broadcast to broadband?
    • What is the causal relationship between brand health and search success? And what is the link between search and sales? How does search contribute to word of mouth recommendation?
    • How can banner ads be more effective?
    • How do you model the consumer response to digital advertising in social networks or mobile media?
    • What do we know and what more do we need to know about on-line audiences?
    • How can advertisers be welcome in social networks?
    • Recipients will be invited to attend a conference in Fall 2009 (Sept/Oct) where they can share their preliminary findings.

Facebook ad targeting system is using the “keywords in people’s status messages”–Tales of Behavioral Targeting

Fresh proof that Congress has to prohibit behavioral targeting unless consumers opt-in appears in the new issue of Brandweek. Facebook is “experimenting” with the targeting by “keywords in people’s status messages,” according to “Tim Kendall, director of monetization at Facebook.” Here are some other choice excerpts from the article:

“Advertisers are extremely interested in all new developments in the behavioral targeting space,” said Emily Riley, senior analyst at Forrester Research, Cambridge, Mass. “We’re seeing a big uptick in the use of [these] tactics.” According to Forrester data, 24% of advertisers used behavioral targeting in 2008. Last year it was only 16%…Almost half of advertisers say, ‘Even if I didn’t use behavioral last year, I definitely want to this coming year…”…

“…said Jeff Berman, president of sales and marketing at MySpace. “… the more data you have, the smarter you can be with your media… but if you want to focus on . . . 25-40-year-old mom Nascar fans who love romantic comedies and live in 12 specific zip codes, we can do that.”

…”as BT becomes more invasive at social networking sites, the technology should improve and thus serve up more relevant ads based on our true site behavior…Revenue Science, one of the biggest independent BT networks, is using forward-to-friend behavior to allow advertisers to target virally oriented people. Bebo, the social networking site AOL bought earlier this year, works with Elkridge, Md.-based Lotame, an agency that helps brand advertisers target unique users, such as new moms, who spend a lot of time on social sites.”

source: Behavioral Targeting: A Tricky Issue for Marketers. Becky Ebenkamp. Brandweek. Oct. 21, 2008

Interactive Ad Bureau to Congress and Public: If Your Privacy is Protected, The Internet Will Fail Like Wall Street!

It’s too disquieting a time in the U.S. to dismiss what a lobbyist for the Interactive Advertising Bureau said as merely silly. The IAB lobbyist is quoted in today’s Washington Post saying: “If Congress required ‘opt in’ today, Congress would be back in tomorrow writing an Internet bailout bill. Every advertising platform and business model would be put at risk.” [reg. required]

Why is the IAB afraid of honest consumer disclosure and consumer control? If online ad leaders can’t imagine a world where the industry still makes lots of money–while simultaneously respecting consumer privacy–perhaps they should choose another profession (say investment banking!).

Seriously, online ad leaders need to acknowledge that reasonable federal rules are required that safeguard consumers (with meaningful policies especially protecting children and adolescents, as well as adult financial, health, and political data). The industry doesn’t need a bail-out. But its leaders should `opt-in’ to a responsible position for online consumer privacy protection.

Behavioral Targeters Use Our Online Data to Track Our Actions and, They Say, to “Automate Serendipity.” Attention: FTC, Congress, EU, State AG’s, and Everyone Else Who Cares About Consumer Welfare (let alone issues related to public health and ethics!)

NPR’s On the Media co-host and Ad Age columnist Bob Garfield provides policymakers and advocates with an arsenal of new material that support the passage of digital age consumer protection laws. In his Ad Age essay [“Your Data With Destiny.” sub required], Garfield has this incredibly revealing–and disturbing–quote from behavioral targeting industry leader Dave Morgan (Tacoda) [our emphasis]:

“Now we have the ability to automate serendipity,” says Dave Morgan, founder of Tacoda, the behavioral-marketing firm sold to AOL in 2007 for a reported $275 million. “Consumers may know things they think they want, but they don’t know for sure what they might want.”

Garfield writes that “In 2006 Tacoda did a project for Panasonic in which it scrutinized the online behavior of millions of internet users — not a sample of 1,200 subjects to project a result against the whole population within a statistical margin of error; this was actual millions. Then it broke down that population’s surfing behavior according to 400-some criteria: media choices, last site visited, search terms, etc. It then ranked all of those behaviors according to correlation with flat-screen-TV purchase…“We no longer have to rely on old cultural prophecies as to who is the right consumer for the right message,” Morgan says. “It no longer has to be microsample-based [à la Nielsen or Simmons]. We now have [total-population] data, and that changes everything. With [those] data, you can know essentially everything. You can find out all the things that are nonintuitive or counterintuitive that are excellent predictors. … There’s a lot of power in that.”

There’s more in the piece, including what eBay is doing. As the annual Advertising Week fest begins in New York, we hope the leaders of the ad industry will take time to reflect on what they are creating. You cannot have a largely invisible system which tracks and analyzes our online and interactive behaviors and relationships, and then engages in all manner of stealth efforts to get individuals (including adolescents and kids) to act, think or feel in some desired way. Such a system requires rules which make the transaction entirely transparent and controlled by the individual. The ad industry must show some responsibility here.

Google studies the online behavior of tweens (10-14 year olds) with message to target them via search advertising

When Google acquired DoubleClick last year, they also took over its search marketing division called Performics. A new study commissioned by Performics focuses on the media behaviors of 10-14 year olds, so-called tweens. The aim of the study is basically to get more online targeted marketing aimed at young people. The senior VP of search operations at Performics–Stuart Larkins–recently wrote an article on the new study that appeared in Chief Marketer. Here are some excerpts.

At DoubleClick Performics, we sought to better understand the online search and purchase behaviors of seven influential demographic segments and commissioned ROI Research to study these habits across 10 different product categories. Results just arrived for one of the most dynamic segments – Tweens, consumers between the ages of 10 and 14…Tweens consume information through many channels, but the Internet leads. When asked how much time they spent with various media types, 83% said they spend at least an hour per day online, and 68% reported at least an hour per day watching TV. Radio, magazines and newspapers came in much lower…

Nearly half of respondents go online many times per day (more than three), and 87% usually spend at least a half hour each time. Looking closer at this time spent online, the survey found:

72% have a profile on at least one social networking site
· 54% have a MySpace profile
· 35% have a Facebook profile…

For search engines, Google was the overwhelming choice among tweens, with 78% indicating they use Google most frequently…

Tweens reported varying levels of involvement across product categories…

To capture the demand generated in complementary channels, marketers should incorporate search ads into other online and offline marketing campaigns. While a nice rule of thumb for any marketing program, this golden rule is especially true when targeting tweens.”

A story on the Performics study in today’s Marketing Daily noted the research came just as kids were getting ready to get their back- to- school gear. As reporter Tameka Kee explained, the study showed that “search marketing in the media mix is crucial to snagging the attention and influence of tweens, as they are increasingly using search to make product recommendations and find pricing info for their parents...Peformics also found that tweens were using search to find specific product information and store locations across multiple product categories. Nearly half of all respondents said that they used search to find product Web sites in the electronics, telecom, apparel and CPG categories, while nearly half said that they used search to find out where to purchase said products online.”

Marketing is a fundamental part of our lives–and will be increasingly so with digital media. But researching the online media behaviors of young people so they can be targeted with interactive digital marketing raises a number of policy issues, as well as parental concerns. We know that Google has announced plans to sell Performics, although it will incorporate some of its activities within its business operations. But Google’s senior executives should play a leadership role in addressing how to ensure the healthy development of young people. Consumer and childrens’ advocates in the U.S. and the EU-among other places–will be watching closely.

Update. The announcement just came from the Google press office that global ad giant Publicis will acquire Performics. Of course, Google and Publicis are also working together and announced an alliance earlier this year.  Here’s an excerpt from today’s email to the press: “Publicis Groupe and Google (NASDAQ: GOOG) announced today that Publicis Groupe has agreed to acquire the Performics search marketing business (Performics) from Google. Chicago-based Performics, one of the leading search marketing services providers, helps to improve the performance of advertisers’ investments and maximize
client campaign effectiveness. Its profit-driving suite of marketing solutions includes Performics’ reporting platform, local platform, advanced market expertise and active account management….Publicis Groupe has been a leader in the advertising industry for decades, and we believe Performics’ growing business will benefit from being part of it,” said Eric Schmidt, Chairman and CEO, Google. “We look forward to working with Performics as a partner.”

Watch out for those data-collecting “brand builder” widgets!

excerpt from Technewsworld: “…pairing widgets with behavioral analytics creates a sea change in the iterative marketing process. Emerging sophisticated analytics tools for widgets and social applications now give marketers unprecedented capabilities to reach out and track engagement within the consumer social networking environment. As a result, widgets and social applications may well become the most powerful brand builder of all for online marketers.

While most widget platforms that target the professional market provide analytics, some go a step further by giving marketers access to detailed interaction metrics, including time spent with the widget, number of viewings at the component level, rollovers, clickthroughs, pass-alongs, postings, and mass distribution. Brand awareness and recall, difficult to measure in traditional advertising without focus groups and surveys, can be measured at a granular level by analyzing widget engagement levels…By tracking posting, sharing, and viral hotspots, widget analytics provide specific metrics regarding a consumer’s actual and potential influence and his value on the engagement ladder…

With advanced widget analytics, marketers can identify, profile and reach out to opinion leaders within social networking communities. These influencers might be missed when tracking purchase history or Web site page views, because they may not be frequent or large dollar value purchasers. Instead, these opinion leaders influence their network of family, friends and associates by passing along content, posting it to their blogs or profile pages, or reviewing and rating it.”

IAB’s Lobbying Against Privacy Safeguards: Trade Group Will Add New Members to Help Fight Consumer Protection Legislation

The trade lobbying group Interactive Advertising Bureau (IAB) plans to add new members to help it generate “grassroots support against proposed legislation in New York and Connecticut that would ban the collection of data about online consumers without a person’s specific consent.” According to ClickZ, the IAB will create a new low-dues membership structure which will enable smaller online advertisers to swell its ranks. What is IAB’s pitch to its prospective members about privacy safeguards offered by state legislators in New York and Connecticut? ClickZ says that “[T]he IAB contends that the proposed measures would have a disproportionate negative impact on small publishers that rely on ad networks to manage advertising sales.”

The IAB’s leadership is off on a irresponsible mission to persuade online marketers and the public that privacy rules would “kill the web.” Such an self-serving view of why privacy rules are required in the age of online marketing will only further diminish the credibility of the IAB.