Category: mobile privacy

The Federal Trade Commission at “100”–A Serious Commitment to Protect Consumers is Required

This week, the FTC organized a “public roundtable” that is part of a process it calls “FTC at 100: Into Our Second Century.” Through panels and what it calls “self-assessment,” the FTC under its new chairman Bill Kovaciac has asked such questions as: “How well is the FTC fulfilling the destiny that Congress foresaw for it in 1914? What type of institution should it aspire to be when the Commission’s second century begins in 2014?”

But the two-day panel session illustrates what is wrong with the FTC. It is an agency generally afraid to represent the interests of consumers–think about the mortgage meltdown, skyrocketing oil and gas prices, and the lack of privacy online. The panels consist primarily of commission staff, former officials (who are now, given the FTC’s golden revolving door, primarily representing industry). There is only one consumer advocate (from CDT, which gets corporate funding) and one state AG official. There are a few academics, including those working at corporate-funded thinktanks. Participation by consumer groups and independent academic experts are simply not on the FTC’s agenda.

We have found the FTC to be a generally timid government agency–largely incapable of keeping up–let alone addressing on behalf of consumers–what industry is doing (especially with the areas I cover in digital communications ). There are good people at the agency, but they are tethered to a system that prevents consumer welfare from being truly protected.

A consumer-focused perspective–currently missing from the agency–would have included a serious discussion at this event by consumer advocates and academics who have actually studied and thought about the consumer movement in the U.S. The failure to do so reflects a serious failure by the FTC’s current leadership to ensure a broad and informed debate as it plans for the future.
The next FTC requires a chairperson and new commissioners who sees the agency’s mission working proactively on behalf of the public.

The IAB (US) “mobilizes” to Fight Against Consumer Protections for Online Media

Watch this online video of Randall Rothenberg speaking before a June Federated Media Publishing event. In Mr. Rothenberg’s worldview, demon critics of advertising (such as myself) are deliberately trying to undermine democratic digital media. This would be absurd, if it wasn’t so sad. Mr. Rothenberg is using scare tactics to whip up his members into a frenzy-all so they can fight off laws and regulations designed to provide consumers real control over their data and information. Luckily, Mr. Rothenberg will be on the losing side of this battle to protect consumers in the digital era. Regulators on both sides of the Atlantic understand how the digital marketing ecosystem raises serious concerns about privacy and consumer welfare. We have to say we are disappointed in John Battelle, the CEO of Federated (who wrote a very good book entitled The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture). Mr. Battelle should know that the online marketing system requires a series of safeguards which protects citizens and consumers. There is a balance to be struck here. Online advertisers have unleashed some of the most powerful tools designed to track, analyze, and target individuals–whether on social networks, or watching broadband video, or using mobile devices. We have never said there shouldn’t be advertising. We understand the important role it must play, including for the underwriting of online content. But the online ad system should not be designed and controlled solely by ad networks, online publishers, trade groups and online ad lobbying groups. It must be structured in a way which promotes as much freedom for individuals.

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.

ATT: DoJ, EC and Congress: Yahoo!’s own claims should raise alarms about a Google or Microsoft deal

No one should sit by and let either Google or Microsoft carve-up or take-over Yahoo! without a serious examination of the competition, privacy, and other consumer protection issues. This week, Yahoo! ran a four-page ad inserted in Advertising Age. Here’s some of Yahoo!’s own copy for regulators and the public to ponder:

“Yahoo! delivers the largest audience in the U.S.-the most 18-34 year olds, the most 35-54 year olds, the most women….Today, Yahoo! reaches over half the world’s Internet users. And with our growing network of premium publishing partners, including over 625 leading newspapers, we’re working with the other half…Our insights and understanding of our users lead to smarter targeting, so we can connect the right audience with the most relevant message–yours…With more ways to connect to your customers more deeply than ever, the future is wide open.”

From Yahoo! Advertising Age insertion. June 2. 2008 entitled: “What Happens When You Can Connect To More Than 550 million People From Over 170 countries Who Spend 2 Billion Hours Each Month In One Place?”

Google Opens its Network to 3rd Party Ad Servers, but Fails to Candidly Address the Privacy Issues

Google announced Tuesday that it [our emphasis] “is accepting third-party advertising tags on the Google content network in North America. This will empower advertisers to work with approved third parties to serve and track display ads, including rich media ads, across the Google content network through AdWords, giving them more options, flexibility and control over their campaigns.” Among the companies it lists that can track us through the Google network includes its own DoubleClick, as well as Eyeblaster, Eyewonder, Pointroll, Unicast, Dynamic Logic, and Interpolls.

Google has created a three-part video series on YouTube to “explain” how ad serving works. But like so much of Google’s privacy PR, it doesn’t really explain what the goals are of its expanded ad service. It also attempts to minimize the very real privacy concerns. Google uses its online ad industry Orwellian-like Doublespeak to suggest that the profiling and targeting of users is “enhancing their web experience.” Google could have included in its YouTube script what it is telling prospective YouTube ad sales persons: “that Google technology enables the world’s biggest advertisers to enjoy immediate and accountable communication with the consumer…to drive revenue… to top-tier brand advertisers and agencies…[via]… a next-generation advertising platform.” It could have said that its expanded online ad platform was designed, as its job announcement for a New York-based “Google Financial Services Account Executive” states, to help “the biggest financial services companies in the world. This includes investment, credit card, tax, banking and insurance companies.” Or as it explains in its “Google entertainment account executive” job announcement, “you’ll help to provide integrated, cross-platform advertising solutions for media and entertainment clients including TV, movie, gaming, music and web publishing companies.”

Google’s blog announcement for the opening up of its network to 3rd party ad servers, and its three-part series, could have detailed the range of data being collected and tracked by its DoubleClick and now other companies. That would include DoubleClick’s “Rich Media’s Audience Interaction Metrics package,” which “lets you analyze data on more than 100 unique interactions in every creative unit including multiple exit links, counters, timers and video metrics.” Or Eyeblaster’s “advanced …powerful tracking and optimization capabilities” that examine “unique viewer behavior– why look at impressions and clicks when you can look at the behavior of individual customers.” Or Unicast’s “User Engagement Index (UEI), that measures a user’s interaction with a rich media ad and provides a score made up of key engagement metrics.” Or what its now 3rd party approved from Eyewonder collects, such as “track all video interactions, rich media interactions, brand interactions and time, and …Custom tracking… to also measure metrics critical to your specific campaign.”

Google really requires both a privacy and online marketing ombudsman, to say the least. They have a very hard time being straight-forward about what information about us is being collected, how it’s really used, etc. Perhaps independent observers and consumer advocates whose mission is to help the company be more honest with itself, its employees, and its users would help. Meanwhile, we will just have to help regulators, policymakers, and the public better understand what Google isn’t really telling us.

PS: This announcement also has implications for mobile privacy. We think this quote from Mobile Marketer is very telling (hey, Google. Put him on your GoogTube channel!): “As mobile advertising evolves and matures, advertisers will demand consistent, in-depth analytics and immersive consumer engagement frameworks,” Mr. Rahav said [Amit Rahav, VP, Marketing, Eyeblaster]. “…To be able to retain client confidence and quality of user experience, Google defined a process for certifying trusted partners like Eyeblaster and other companies. Defining such rules of engagement creates the win-win ecosystem that helped scale Web advertising and stands to do the same for the mobile world.”

PPS: Perhaps Google should have addressed this, from its new 3rd Party approved partner Interpolls: “Interpolls is the only rich media company providing a complete end-to-end suite of integrated marketing solutions. In addition to rich media advertising, Interpolls provides clients with interactive promotions, live on-air voting, site polling, online sweepstakes and more. All of Interpolls services can be integrated into its proprietary platform, offering customers tremendous convenience while maximizing reach, awareness and results. “Expanding our distribution network to include the Google content network was a critical piece needed to provide our clients with the industry’s largest rich media distribution to reach their customers and prospects without limitations,” said Peter Kim, CEO and president, Interpolls. “The agreement opens the door for our clients to increase their distribution through the Google content network, and provides Google publishers and advertisers access to our innovative rich media advertising and widget solutions.”

PPPS (and we promise this is the last one!). Google also announced that several research firms were now allowed to work with its network and, we assume, help “measure performance” of Internet ads. They include Dynamic Logic, IAG Research, InsightExpress, and FactorTG. For example, IAG (now owned by Nielsen) says it “is the only panel-based measurement service that provides continuous evaluation of Internet ad performance and a direct comparison to TV ad effectiveness.” In another words, to help grow Google’s ad business it has, understandably, opened up its service to the network of tracking, analysis, and interactive media delivery services which comprise the world of marketing. But, we believe, Google should have explained all this clearly to users, and not–in our view–gloss over what this all means.

The Shopping Cart Tells You What To Buy–and knows if you did!

Just when consumers tighten their wallets and purses, a new system emerges that will use data collected from us to target us while we shop in grocery stores. Here’s an excerpt from MediaCart’s pitch to advertisers:
“With MediaCart, consumer product brand marketers can deliver full-motion video advertising to shoppers as they approach various product locations in the store – whether walking down an aisle, approaching an end cap or standing at the checkout.

Direct One-to-One Ad Targeting. By collecting shoppers’ preferences through loyalty card information, prior shopping history, geographic locations and shopping times, advertisers are able to channel valuable communications to individual shoppers and deliver a powerful visual message right at the point of purchase.

Tracking Your Advertising Investment. The MediaCart® system tracks each cart’s location, dwell time, and shoppers’ purchases. This information will give valuable feedback on shoppers’ responses to alternative ads, offers, displays or message frequency. Advertisers are able to measure the true impact, quickly determine what is most effective, and adjust advertising messages and promotional offers as quickly as sending an email.”

Microsoft, by the way, is working with them. Be sure to see the picture of the cart on the press release.

Verizon Research: Mobile Banner Ads work as well as TV spots producing brand recall

As part of our work covering mobile marketing, we will post relevant information to foster discussion and debate. Mobile communications will bring a profound change in how we live our lives. How we engage with our communities and social networks, let alone with brands and ads, will be greatly influence by mobile technologies. We need to try and create the mobile media “ecosystem” in a way which strengthens democracy, protects privacy, encourages innovation and fosters commercial growth. Here’s an excerpt from Online Media Daily:


“On average, small banner ads on mobile devices produce the same level of brand recall as the typical 30-second TV spot, according to Stephanie Bauer Marshall, the mobile advertising leader for Verizon Wireless… “The banner ads work really well, and that’s where you have the greatest reach”…they were on par with TV spots in terms of brand recall….Mobile banner ads also produce click-through rates that are “exponentially higher than online” banner ads…Verizon has commissioned brand recall studies…”

Mobile Banner Ads Have Same Brand Recall As TV Spots. Eris Sass. OnlIne Media Daily. May 15, 2008 [reg required and well worth it]

Google’s Mobile Plans include Cookies for Ad Targeting

At last week’s FTC hearing on mobile marketing, we pressed several industry representatives to confirm that the data tracking, profiling and targeting system we now have online is being migrated to mobile. That’s what eventually we were able to get at least one mobile marketing panelist to confirm.

Meanwhile, we have learned that Google has made presentations to advertisers about its mobile marketing capabilities. It appears that mobile cookies are part of their targeting marketing plan. Google told advertisers that “Google provides mobile conversion tracking on phones that support cookies. Google can measure clicks, impressions and conversions for all campaigns.”

Google needs to explain to the public how its cookies and mobile ad tracking and targeting will work, including what safeguards it plans. By the way, we also think it’s interesting to place Google mobile in the context of its DoubleClick subsidiary. 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…Report on impressions, clicks, jump pages and third-party metrics…Full reporting for all dynamically displayed ads.”

Google’s Android does, it turns out, dream of electric ads via cookies.

Google & Yahoo!’s mobile businesses will require antitrust scrutiny in any deal

Among the questions we will raise with policymakers is what any alliance between Google and Yahoo! will also mean for their respective mobile search advertising businesses. Privacy is certainly a concern here, as companies such as Google migrate the user tracking and targeting model which fuels the traditional PC-focused online ad business.

Here’s what Yahoo! says in can do with its Mobile Ad Services: “Yahoo!’s Mobile Ad Services make it possible to reach your target customers wherever they are, seamlessly following them from the PC to the mobile Internet. A wide variety of ad formats, targeting options, and calls-to-action are available – as well as resources to help you put effective programs in place if you’re new to mobile advertising…
Eye-catching display ads can be targeted using the same wide array of options as traditional Web banners (e.g. context, demographics, behavioral) – and can incorporate location, which has greater importance when marketing to consumers who are ‘on the go’.”

Update [via 5/12/08 Advertising Age. sub required likely]: “Google has managed to command a lead in mobile search, though nothing like the massive share it has in the PC-based internet world. According to M:Metrics data, Google had a 38.3% share as of August 2007. (Yahoo is the next closest with 25.4%.)”

source: WiMax Could Bring Dramatic Changes, Wherever You Are. Abbey Klaassen. Ad Age. May 12, 2008

Do Androids Dream of Mobile Digital Ads? I’m Speaking at FTC next Tuesday on Mobile Marketing and Consumer Protection

The mobile marketing ecosystem, as its called by the industry, poses significant consumer protection and privacy concerns. Next week, the FTC is holding a two-day town hall meeting on mobile marketing. The commission has invited me to participate on the mobile advertising and marketing panel. The public and many policymakers are entirely unaware of what’s soon coming. The FTC and policymakers must do a better job both educating the public and asking them to speak out about how the marketing system should be structured. Safeguards will be required, including for youth. I will try and deliver a “click to call to action” overview.