broadband – Page 43 – Digital Destiny

IP addresses +Cookies+Tracking/Targeting & Retargeting [esp. cross-platform]=You

Here’s a brief excerpt from a FTC filing my Center for Digital Democracy will submit today for the commission’s online advertising and privacy guideline proceeding.

“Google and most other online advertisers would prefer to hide behind the erroneous claim that IP addresses and cookies don’t reveal an individual’s physical identity (place of residence, phone number) or specific economic identifyer (social security number). But they know that in today’s digital marketing era, the very tiny bits of personal behavior they have identified are parts of individual human identity. Our “virtual” identities may be composed of discrete and disassembled bits of information about ourselves: Â—what we like to read, watch, buy; our problems and concerns (such as health or our children’s education) or our political interestsÂ—, but they are very much living aspects of ourselves. The goal of interactive marketing is to collect, analyze, and use such information to serve the interests of those paying for the targeting. The technique uses one, two or multiple individual data points in a variety of ways (search ads, broadband videos, virtual worlds) to get individual consumers to behave or act in ways that favor or reflect the marketer’s goals. The record makes clear that IP addresses and cookies provide the technical means for the one-to-one targeting of consumers.”

Google+Yahoo!=Further Newspaper Industry Consolidation (Att: FTC et al.)

The growing and ever-evolving corporate consolidation of the online advertising industry is a critical issue that should be addressed. Are there any responsible regulators and policymakers out there? We wonder, since so many are asleep at the digital switch. The intense, libidinal rivalry between Google and Microsoft almost knows no bounds. While an alliance with Google may save Yahoo from Microsoft, leasing out its search business all but ends Yahoo’s role as an independent competitor, as far as we are concerned.

One issue that requires analysis is what happens to newspapers if a Google and Yahoo merge or mingle its search business. Between the two companies, they have the majority of newspapers locked up. Yahoo’s newspaper consortium represents hundreds of dailies. Google also has its own newspaper network. Indeed, Google just ran a full-page ad in the March 31, 2008 issue of Advertising Age touting its “Google Print Ads” network. Google says it now “covers all but two of the top 50 media markets and reaches an aggregate audience of more than 40 million readers a day via more than 750 million newspapers, from major dailies like the New York Times to smaller community and college papers, Hispanic newspapers, alternative weeklies and business journals.”
With our nation’s newspaper industry in tatters–and journalism in dire straits–the role that a competitive online ad system plays to provide much needed revenues to newspapers is an important issue. Anti-trust regulators, and other policy makers, should examine the implications to newspaper diversity of any new deal further reducing the competitiveness of the online ad system. By the way, since newspapers are using these systems for behavioral and other targeting, both privacy and data collection issues should be part of the analysis.

Google, AOL, Yahoo, Facebook and Comcast Fear NY State bill protecting online privacy

Oh, what a tangled web when you build a business mode based on the collection and unfettered use of microtargeting data. New York state Assemblyman Richard Brodsky has proposed some modest safeguards–but has scared the supposedly privacy-respectful companies such as Google with it. Google, AOL, Yahoo and others sent the letter below to Brodsky. Yesterday, we are told, AOL and News Corp lobbyists met with Brodsky’s office and claimed that the online ad industry would have to flee New York if consumers are protected in that state. Perhaps they plan to relocate Madison Avenue to a digital green zone outside the U.S.! Btw, note the addition of Comcast, which also wants to protect its TV version of behavioral targeting via its Spotlight service.

The letter:

State Privacy and Security Coalition, Inc.

April 7, 2008

The Honorable Richard Brodsky
New York General Assembly
Legislative Office Building
Room 422
Albany, NY 12248

Re: Opposition to A. 9275

Dear Assemblyman Brodsky:

We are writing to express our strong opposition to A. 9275, which is
unnecessary, most likely unconstitutional, and would have profound
implications for the future of Internet advertising and the availability of free
content on the Internet.

A. 9275 would subject advertising networks to an extremely
detailed, unprecedented array of notice, consent, and access obligations
relating to â€œpersonally identifiable informationâ€ and â€œnon-personally
identifiable information â€ that is used for â€œonline preference marketing.â€
Every website that an advertising network contracts with would be subject
to detailed notice requirements.

This bill is unnecessary because advertising networks have already
agreed to self-regulation commitments relating to most of the components
of this bill. If they fail to live up to these commitments, then the Federal
Trade Commission and the New York Attorney Generalâ€™s office would
have enforcement authority. Moreover, the bill appears to be based on
Network Advertising Initiative principles that will soon be outdated, as new
principles are expected to be released in the near future.

This self-regulatory system is continuing to advance. The Federal
Trade Commission has issued further self-regulatory principles relating to
behavioral advertising on which it will receive extensive comments later
this week, and several major network advertisers have announced new self-
regulatory initiatives. New York does not need to, and should not, jump
into this process.

This is particularly true because the Dormant Commerce Clause of
the U.S. Constitution prevents any State from dictating activity across the
Internet. Yet network advertisers and websites across the country and
operating in other countries would have to attempt to change their practices
to conform to the very specific notice, consent and access requirements in A. 9275. It is simply not feasible to comply with Internet advertising regulations that vary from state-to-state. Time after time, state laws that have attempted to impose this sort of broad Internet regulation have been struck down by the courts, doing nothing more than making taxpayers bear the expense both of defending the lawsuit and paying the successful plaintiffsâ€™ attorneys fees.

For all these reasons, we urge you to oppose A. 9275 and allow self-regulation and federal initiatives to address online behavioral advertising.

Sincerely,

Jim Halpert
Counsel

[Members]

AOL, LLC
Comcast
eBay Inc.
EDS
Facebook
Google
Internet Alliance
Monster Worldwide
NAi
NetChoice
Reed Elsevier, Inc.
Yahoo!
500 8th Street, NW
Washington, DC 20004
202.799.4000 Tel
202.799.5000 Fax

Report on online ad market: "DoubleClick owns the head and Google owns the tail"

A new study conducted in January 2008 by Attributor and Compete shows that [excerpt]:

DoubleClick and Google dominate overall market share capturing 35% and 34% of unique users, respectively.
DoubleClick owns the head and Google owns the tail. For sites with over 1MM monthly unique users, Doubleclick has a 48% share, a 3x advantage over 2nd place Yahoo. For sites with less than 100k monthly unique users, Google has an 8x share advantage over 2nd place MSN…

The GoogleClick combination is an ad-serving juggernaut.

See this discussion as well from eMarketer on the study. Search Engine Journal also covers it.

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CDD Publishes new report on widgets, third-party apps: &quot;The Facebook Economy&quot;

My CDD commissioned a report from investigative journalist Adam Mayle that examines Facebook and the growing universe of third-party applications. The report, available via here, examines some of the data collection and privacy issues from these Facebook-related services.

Here’s a short excerpt: “But while this platform has benefited many, it raises concerns about user privacy. Because of their deep integration into Facebook, developers have extensive access to user information, but it is often unclear if, when and how they exploit this data. This situation is perpetuated by Facebookâ€™s unwillingness to regulate the widgets that operate on the site. As a result, users often have no idea who is collecting their data, how information is obtained as one interacts with these applications and how such data â€“ even so- called not non-personally identifiable information â€“ is subsequently used. By eschewing liability and placing the burden of responsibility on developers to police their own applications, Facebook unnecessarily exposes its users to cyber-threats like adware, malware and hackers. In many ways, Facebook has created a
dynamic social network, but because of the practices that it has adopted, it needlessly places the privacy and security of its users in harmâ€™s way.”

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Will Al Gore’s Alliance for Climate Protection and its $300m ad budget address the role of advertising and the climate crisis?

We think there’s something ironic about the $300 million ad “We” campaign just launched by Al Gore and several environmental groups to address climate change. We agree that threats to the environment are grave, and require immediate action. But unless Gore’s ads also critique the growing challenge to the environment coming from the advertising industry itself, we doubt whether there will be meaningful change. Marketers are unleashing the most powerful techniques to encourage greater and greater personal consumption. Madison Avenue is expanding the boundaries of what marketing can do by creating what it calls its “Marketing and Media Ecosystem.” From behavioral targeting based on the collection and tracking of our online activities, to “immersive” branded virtual content, to “viral” campaigns using broadband videos, the ad industry has embarked on a full-court press to get the public to eat more junk food, buy more cars, charge more on credit cards and take out new loans, etc.

The campaign, according to press reports, is hoping to encourage “influentials” to press for laws and policies. It’s a noble effort, although is using the same techniques marketers have embraced to target teens and other opinion makers to get friends to buy or like brands and products (called “brand ambassadors” by some). The Gore campaign should include a serious call for the public to be concerned about the consequences from the global and digitally-driven interactive marketing machine. Among the policies it should ask its influentials to support, are safeguards protecting consumer privacy and ensuring that marketing in the digital “ecosystem” is done in a way that truly supports an earth in balance.

PS: Before any of the $300 million is given to buy time via broadcasters, cable companies, ad agencies, and online marketers, the Alliance for Climate Protection should first be required to conduct an environmental impact analysis of how these media each contribute to the climate change threat–and what they should do about it.

Simpson, Thatcher &

Here’s an excerpt from an article in GCP, the “Online Magazine for Global Competition Policy” by Peter C. Thomas, entitled “Lifting the Fog: Google/DoubleClick Demystified.”
“In the end, both the FTC and the Commission cut through the fog of the complaints surrounding the proposed merger to get to the right answer, namely that Google and DoubleClick operate in different, already competitive markets, and that their complementary services, when combined, will not harm competition in any relevant market.”

But readers should follow the asterisk next to Mr. Thomas’s byline, which reads [our emphasis]: “âˆ— The author is the Managing Partner of Simpson Thacher & Bartlett LLPâ€™s Washington, D.C. office…Simpson Thacher represented Hellman & Friedman and DoubleClick in the acquisition by Google.”

We love objectivity!

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