Senator Dorgan: remember the role of digitally targeted ads & FTC in subprime mortgage scandal

Last November, my CDD and USPIRG filed an amended complaint with the FTC asking it to crack down on behavioral targeting, including its role in the subprime mortgage lending crisis. We are glad Senator Dorgan and others raised concerns that the FTC is failing to do its job in this critical area. Online mortgage lending–and related financial matters–requires serious consumer safeguards. Online marketers–including search engines and social networks–have looked the other way while a great tragedy has befallen so many in the country. We are urging Senator Dorgan to examine the CDD/PIRG complaint, and help get the FTC and other regulators on the case.

Behavioral targeter Collective Media looks to hire

It’s always useful to examine the employment listings. Here’s one from Collective Media, which claims it offersTargeting like no other. Our comprehensive targeting capabilities are unrivaled in the industry. Not only do we have the premiere technology for content, contextual and behavioral segmentation, we have the expertise to make the most of it…By leveraging partner Personifi’s context targeting and powerful taxonomy, Collective is able to offer advanced audience behavior targeting…

  • Collective tracks frequency and recency of past visits to assign a behavior segment to a user.
  • Collective then targets these users across our network of publishers to extend reach to any audience segment.
  • Understanding people’s interests and actions allow us to reach them at just the right time, place and with the most appropriate message.”

So in case you want to apply for Ad Operations Client Manager, you will need to appreciate that Collective’s “Ad Network Management Platform (AMP) is the revolutionary platform…to manage the thousands of sites and billions of ad impressions that run through its network each month…reaching more than 140 million unique users monthly.”

(PS: Given Collective’s use of DoubleClick, it will be interesting to see what Google’s role will eventually be).

WPP’s 24/7 Real Media pushing “psychographic targeting” to “drive buyer behavior and brand affinity”

The online advertising industry is throwing rocks at our notions of consumer protection in the digital age. Don’t they realize a serious public debate about all this is required before they engage willy-nilly in advanced targeted?
Here’s an excerpt from WPP’s 24/7 April 28, 2008 release:”…announced that it is the first media network to deploy psychographic targeting through a partnership with Mindset Media, LLC. The new Mindset Buysâ„¢ will enable brand advertisers to target consumers with specific personality traits that drive buyer behavior and brand affinity across a broad range of consumer goods and services.Brand advertisers have long known that consumers’ states of mind can determine what they buy and what brands they choose, but advertisers have lacked an efficient way to target mass audiences of people with the right psychographics.

Now advertisers can make Mindset Buys on 20 different elements of personality, including creativity, assertiveness, self-esteem, and spontaneity. Each Mindset Buy on 24/7 Real Media can reach millions of U.S. consumers with the same personality trait, on a completely anonymous basis. The 24/7 network reaches 150 million unique viewers each month, across more than 1,500 sites globally…Psychographic targeting through Mindset Media represents the latest addition to 24/7’s advanced portfolio of targeting solutions, which also includes lifecycle management, search retargeting, geo-demographic, content, behavioral, retargeting and custom. Many of these can be combined to form an endless number of specific targeting options that can be delivered to any digital medium.”

From Mindset: “Our proprietary table of elements makes Mindset targeting possible. The table comprises 20 personality traits that drive buyer behavior and brand affinity across a broad range of consumer goods and services, from beauty care to banking, cars to credit cards, food to pharmaceuticals.”

Update: DM News quotes a 24/7 and a Mindset exec.: “[S]imply put, it’s the ability to target individuals based on what makes them themselves,” said Ari Bluman, SVP of North American sales and operations for 24/7 Real Media. “From a direct marketing perspective, obviously being in front of the right audience that buys a product or is moved by a message is essential,” he said…Mindset Media has identified 20 different elements of personality, which include assertiveness, openness, spontaneity and pragmatism…The goal is to create mass audiences of people who tend to have the same personality type, [Jim] Meyer [CEO and co-founder of Mindset Media] said.

Yahoo! merger or deal watch. privacy division: Yahoo! may expand behavioral targeting

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!!!

Services to protect advertisers online from appearing next to "inappropriate" broadband content emerge

TV networks and ad agencies have long had a system in place to make sure programming doesn’t conflict with the interests of its key audience: advertisers. Network standard and practices departments reviewed entertainment programming to make sure a marketer–or the network–wouldn’t be embarrassed by the theme or content. We are beginning to see such practices emerge for the online medium. For example, last year Feedburner [now owned by Google], the leading ad service company for blogs, began a service called “Adclimate” that “suppresses when an ad would be served in an RSS item or blog post containing keywords that an advertiser has pre-selected as inappropriate for their brand…FeedBurner’s AdClimate was developed to meet the needs of its advertisers in a rapidly developing market. This capability addresses advertisers’ apprehensions about their brands appearing within distributed media. Controlling ad targeting based on advertiser-selected keywords provides peace of mind and additional control.”

Now there are similar services for the burgeoning world of broadband video. ScanScout, for example, says it offers advertisers “brand protection.” The company asks: “How can advertisers be assured that their brand messages will only be seen adjacent to the most appropriate content?” That’s where “ScanScout’s Content Matching technology” comes in, because “[I]t ensures that the right ad is shown to the right user at the most opportune time.
Brand Protection: ScanScout technology is designed to ensure that advertisers’ brand messages will only be seen adjacent to the most appropriate content.”

ScanScout explains that (its emphasis) “rich content scanning is deeper and more precise than anything ever introduced, creating algorithmic intelligence about each video and each user’s behavior, enabling far better matching than ever imagined…”

Much is said about the important role of advertising supporting the diverse array of online content. And it’s true that we have tremendous content diversity and advertising plays a key role. But just as advertisers shaped radio, broadcast television and cable that helped undermine their public interest potential, we suggest that much more analysis and debate is needed to explore the ultimate impact of advertising on the future of the digital ecosystem.

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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.”

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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