All these privacy, data collection and marketplace competition issues will need sorting out. Yahoo is acquiring “Tensa Kft., more commonly known as IndexTools…IndexTools will add more insight and metrics for online campaigns…” One search column explains the significance of the deal is the “…huge benefit that Yahoo will have is the ability to put their pixels (data collection mechanism) around the web and hence collect data. Which, in turn, will help their Behavioral Targeting efforts, which are currently limited to Yahoo portal only. This is huge!!!
Category: privacy
A thoughtful response to the IAB
Steve Rappaport, co-author of The Online Advertising Playbook: Proven Strategies and Tested Tactics from the Advertising Research Foundation, wrote the following comment to Randall Rothenberg’s Huffington Post piece. In our view, Mr. Rappaport’s analysis and measured tone is exactly how online ad industry leaders should respond to the growing debate on privacy and consumer protection. Mr. Rappaport wrote that:
“I work in the advertising industry, have written a book on online advertising (The Online Advertising Playbook), am acquainted with Randy and Prof. Turow (I like them both), and am expressing my personal views. They are not those of my employer or anyone else. Please, hold them harmless.
Regarding issues of targeting, privacy and security online, it’s the duty of academics and public interest organizations to question, and to question practices. In my book’s section on behavioral targeting I brought up Prof. Turow’s argument concluding that it was important and that the industry should consider it, not to reject behavioral targeting, but to think about it in a more nuanced way so that marketers can benefit their brands and consumers. While writing, drafts of chapters were sent to highly regarded industry folks. Not one questioned the inclusion of that passage.
While Turow is portrayed as an enemy of advertising, the truth is that we have bold people in the advertising industry itself who raise similar questions – see Matt Creamer’s article in the special digital issue of Ad Age from March (“Think different: the web’s not a place to stick your ads”). And none other than Tim Berners-Lee, the putative father of the web, is raising concerns about online tracking. The internet is all about throwing light on topics and having lively discussions that work towards a resolution, which was nearly impossible just 10 or 15 years ago. We’re better for it. We should encourage it, not quash it.”
Those mobile devices will be watching you–and telling you what you would like (even on other screens)
As part of our public service to the FTC, esp. in light of its upcoming town hall, we submit some excerpts from io global. This company “provides the software and services to enable Network Operators, Media Brands and Advertisers to collaborate in a trading model to personalize and monetize their interactions with individuals on the run.” They explain to potential advertisers that “the io global ltd -enabled device learns what your consumer cares about most. Which TV shows and movies she likes. Her favorite music and games. Where she travels. What news, entertainment or other services she prefers. This rich, detailed data creates an accurate profile of this single customer for powerful target marketing. Then io global ltd uses this learning to serve up her preferred content. It’s in this friendly “opt-in†environment that your brand and messaging is delivered… In addition, io global ltd moves seamlessly from the mobile device to engage the consumer on her PC and her TV.”
European Privacy Officials investigate behavioral targeting & data mining
Just to place the privacy and online marketing debate in better perspective. It is appropriate and necessary for lawmakers and policymakers to examine and then address through rules the impact of new technologies on privacy. The Article 29 Working Party, the EU’s data protection review group, adopted as part of its 2008-2009 work plan to help ensure “data protection in relation to new technologies.” Among the areas they are now examining include: “search engines, on-line social networks (especially for children and teenagers), behavioural profiling, data mining, [and] digital broadcasting” (they are also focusing on ICANN and WHOIS). Direct Marketing is being reviewed as well.
Our point here is that the online industry has largely developed its system of data collection without user permission largely in the absence of thoughtful oversight that would ensure privacy. We believe the process underway in the EU will help address this issue in a meaningful way.
European online advertisers organize to defend the industry
excerpt:
European Interactive Advertising Bureau bodies will convene next month to formulate a constitution. IABs based in European nations are expanding their operations, driven by a more mature, renewed and redefined central body: IAB Europe. “[Europe] has started to wake up now, finally,” said IAB Europe President Alain Heureux…IAB Europe plans to restructure and reorganize the European bureau to provide a “more professional and more effective” central body, Heureux told ClickZ News… Now, representatives from each of the continent’s 15 national bodies will meet in Brussels on May 6 and 7 to draw up a constitution defining a new role for the IAB Europe, as well as a funding and staffing structure to support it…
The primary role of the bureau going forwards, according to Heureux, will be to represent and defend the industry in relation to legal and public affairs, and be prepared to “educate European regulators properly” on issues surrounding the industry.
source:AB Europe Embarks on Expansion and Restructuring. Jack Marshall.The ClickZ Network, Apr 23, 2008
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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.â€
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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Randall Rothenberg of the IAB cries digital wolf
Mr. Rothenberg, head of the trade group that represents interactive marketers, is in a tizzy because privacy, consumer advocates, and some lawmakers in the U.S. and EU advocate public policies that would empower citizens and consumers to have greater control over their data. Groups such as my CDD also want online marketers to inform users about the range and intent of data collection taking place. Anyone who has studied the online ad industry and is following it should be disturbed by many of its developments and directions.
There needs to be a serious and honest debate about all this–and rules enacted to protect the public. As more people realize the dimensions of the interactive marketing system and its implications, there will be a raising protest. We expect that when the EU’s Article 29 Working Party, made up of data privacy commissioners, issues its report on behavioral targeting, it will be an informed and thoughtful discussion of what must be done. Given the henny-penny approach Mr. Rothenberg has embraced to fight off consumer protection safeguards, we assume he will ask Congress to formally break diplomatic relations with `old’ Europe!
This is a serious issue, with ramifications affecting consumer welfare in a number of areas, including information they receive about pharmaceutical products, personal finances (such as mortgages) and with our children and adolescents. As I’ve said, we recognize the vital importance of advertising for the online medium. But it must be transparent, respect privacy, and operate fairly. The global digital ecosystem must evolve, as much as possible, in the most open and democratic manner.
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One more request for those friendly Privacy Penguins–the AOL and Verizon deal, please
Dear Mr. or Ms. Penguin: It appears that Advertising.com’s new deal with Verizon brings behavioral and other data targeting to both its broadband and mobile platforms. Please explain what AOL’s recent acquisition Third Screen Media means with its April 14, 2008 release that says:
“Under the terms of the agreement, Verizon will leverage Platform-A’s sales capabilities for all of Verizon’s online inventory and a majority of Verizon’s mobile inventory. In addition, Platform-A will be the only sales organization that can represent Verizon’s inventory in the marketplace and guarantee placement within the Verizon network. All other sales partners are selling on a blind-network basis.
Verizon will continue to use Platform-A’s mobile ad serving platform, Third Screen Media, to manage the sale of its mobile web advertising. Third Screen Media’s advanced mobile advertising options include geographic, demographic, and content targeting, display, and sponsorship opportunities on Verizon Wireless’ portal, sections and article Web pages. The Verizon ad network is available to brands and agencies wishing to buy advertising on Verizon Wireless Mobile Web pages…”
We await, kind Privacy Penguin, for an answer. Thanks.
PS: Please include any details about the sharing of consumer data from either the broadband or mobile platforms.
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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AOL should also explain for our EU friends
AOL’s articulate chief privacy officer Jules Polonetsky says he will be responding in his blog to my citing some of Advertising.com ad copy promoting its behavioral targeting. I hope he also explains, to help out privacy and consumer advocates in the EU, what Advertising.com’s UK division means when it says:
“Behavioural Targeting is the most dynamic way of reaching the right audience online. Using our Behavioural Network and LeadBack technology, we can target a pre-defined audience segment based on user behaviour on the internet.
There are a number of different ways we can create these audience segments:
- Advertiser LeadBack
We are able to target users across our network based on their behaviour on advertiser websites (e.g. partial conversion, abandoned shopping cart). - Audience LeadBack
We are able to target users across our network based on their behaviour on publisher websites (e.g. viewing product review sites). - Search LeadBack
We are able to target users across our network based on their search engine activity. - Creative LeadBack
We are able to target users across our network based on their interaction with ads served outside the Advertising.com network.
By establishing certain user traits or demographics within an audience we are able to target those individuals with the most relevant advertising or simply reach those same users in a different environment.”
and when it says that: Advertising.com employed its web marketing solutions to drive high-volume subscriptions for Vonage. From advanced targeting to view-through tracking…Advertising.com’s AdLearn optimisation technology analyzed user response data, accounting for thousands of factors – including behavior, geography, hour, creative, website and more – to determine optimal ad placement based on the highest expected number of subscriptions generated for Vonage… Vonage also sought a solution to convert those users who clicked on the ad but did not complete a subscription. Vonage implemented Advertising.com’s LeadBack behavioural targeting technology to anonymously track consumer activity on the Vonage website, e.g., abandoned subscription form. After exiting the website, consumers who had not completed a subscription received targeted ads designed to drive them back to the Vonage site.
In order to accurately track the success of the campaign, Vonage leveraged Advertising.com’s view-through tracking technology to match conversions occurring in the days following the initial impression.”
and with: “MediaContacts came to Advertising.com to drive sales of Volkswagen’s Jetta A4 model… Advertising.com created a custom subnet within its extensive network comprised of consumers who had researched cars online in the past six months. Ads featuring the Jetta A4 model were targeted to this subnet and were designed to drive consumers to Volkswagen’s website where they could configure their ideal version of the A4 or request more information from a local dealer.MediaContacts also leveraged Advertising.com’s LeadBack behavioural targeting technology to anonymously track consumer activity on Volkswagen’s website, e.g., did not configure an A4. After exiting the Volkswagen website, consumers who did not configure a vehicle or complete a request for information received targeted ads designed to drive them back to the site to complete the unfinished action.”
and please also explain what you currently offer via Time Warner’s recently acquired Tacoda. For example, when it says that (our emphasis):
“All 4,000 plus partner sites in TACODA Audience Networksâ„¢ carry tags that reflect the interests of the audience that view that page. Every time a user visits any page, that tag information is added to a cookie on the user’s computer and a profile of the user’s interests quickly builds up. Before they are added to a segment in the database though, individuals must have demonstrated an interest in specific content at least two to four times in the past 7-30 days (this period varies to account for the differing lengths of the purchase cycle for each segment). Such is the size and scope of our network that over two billion new web behaviours are added to the database each day – making it one of the top ten largest commercial databases in the world.”