Category: broadband

Bravo for New York Assemblyman Richard Brodsky and his Privacy Bill Protecting Consumers Online

New York State Assemblyman Richard Brodsky understands that the digital marketing industry–aided and abetted by too many complicit online publishers–have created a system unfair to consumers. Our data is continually harvested as we are monitored online (and soon via cell phones and even TV). Ad servers take our information about the pages we visit, the shopping carts we use or abandon, the search terms we use (think health, mortgages, etc.), the videos we watch or click off–and much more–so we can be profiled, tracked across the Web, targeted, and then confronted with a variety of marketing messages all designed to have us change our behaviors (to like this product or that, feel someway about a brand, engage in a purchase, or a relationship–including giving up even more personal info). Our data becomes the key part of what the online ad industry calls a “Marketing & Media Ecosystem.” But if we don’t have serious privacy and consumer protections, this “ecosystem” will erode our privacy, consumer rights, and help undermine the role of the Internet as a democratic medium of discourse.

The lobbyists at the Interactive Advertising Bureau (whose board includes Google, Microsoft, Yahoo!, the New York Times, Comcast, AT&T, News Corp/Fox) make the spurious claim that Brodsky’s bill (and similar privacy proposals) threaten the Internet–because, they argue, such safeguards would reduce the advertising that supports much of online content. That is absurd. No one is saying there can’t be advertising–we are just saying it needs to be done ethically. The public requires a digital media system that empowers the individual. Let each person decide what kind of data can be collected and how it can be used (after carefully–but concisely– explaining the consequences of micro-targeting). There should be real limits on how long the data can be retained as well.

The real “ecology” for the future of online communications is a healthy balance between commercial and ad supported ventures and a vibrant public sphere. The IAB is relying on tired lobbyist phrasebook warnings about threats to the Internet if advertising has to abide by consumer protection rules. Frankly, we are amazed that the IAB–with its membership representing most of the major online publishers–can’t adopt a more statesperson-like approach.

Mr. Brodsky’s bill needs to be strengthened, so consumers are empowered to decide what data can be collected, via an opt-in system. It must also protect New York residents from the egregious data collection excesses that we have witnessed with the online mortgage and financial sector, and the emerging health information field. So Bravo to Assemblyman Brodsky for his leadership role in helping protect consumers from a digital marketplace that has evolved based on the unfair and deceptive system of interactive data collection.

CEO from NebuAd demonsrates why New York, other states and Feds must protect consumer privacy on digital networks

We raised concerns about NebuAd last November. The growing use of behavioral targeting collection of data via ISPs requires immediate intervention by policymakers. Thanks to an article written today by NebuAd’s CEO, there’s more evidence supporting a compelling need for policymakers to act and protect consumers.
Here’s an excerpt [our emphasis]: “Web-wide behavioral advertising
This is the type of solution being offered by my company, NebuAd, as well as others, such as Adzilla. The web-wide behavioral advertising companies are able to leverage a large proportion of user surfing habits and their searches. So while portals such as Yahoo may collect information on a fraction of user surfing behavior, web-wide behavioral advertising companies are able to observe most of a user’s surfing behavior. Having such rich information allows companies in this space to build much larger, and define more meaningful audience segments, which in turn will enable advertisers to tailor their offerings to their specific desired audiences.

Moreover, having instant access to user surfing behaviors means that profiles can be developed quickly — really quickly. Web-wide behavioral targeting can develop detailed profiles in a single surfing session, something it would take “traditional” BT players weeks or even months to do. And as profiles are developed almost instantaneously you get a clear picture of what the user wants now — not what he was interested in a while back. Ultimately advertisers want results, and this means they need to reach web users with a relevant ad at the exact moment they are in the market for their goods and services.”

source: “3 Factors Improving BT’s Aim.” Bob Dykes. imediaconnection.com. March 20, 2008

Big Ad Agency Expectations: Google will “leverage” and “combine” with DoubleClick’s data

From an interview published March 17, 2008, via paidcontent.org, with Ogilvy’s chief digital officer (excerpt): “Google and DoubleClick have been partners with Ogilvy for a long time. Half of our clients are on DoubleClick ad serving platform and obviously, we’re buying a lot of media from Google, in the form of keywords. So both continue to be key partners to Ogilvy – as are Yahoo and MSN. From an industry dynamic, it’s going to be interesting to see how Google can leverage the data that DoubleClick has and combine that with the search data to further optimize the display media.”

What AOL’s Proposed `Privacy Penguin’s’ Won’t tell You (or, this campaign needs to go into turnaround)

Time Warner’s AOL division needs to reconsider its forthcoming campaign that will use cartoon penguins to inform users about data collection. I have been told, by the Penguin Committee for Honest Disclosure, that they would like Time Warner and AOL execs to address concerns about consumer privacy seriously. Humor is fine–so is candor. So to help Time Warner rework its upcoming campaign, here’s some of the language its Advertising.com is using to pitch EU marketers about its behavioral targeting “solutions.”

“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…”

Google (and many others) embrace “always on marketing”

We believe it’s important to help the public understand where Google, Microsoft and the other digital marketing firms are headed. An excerpt from Adweek: “Google is consulting with several top clients to help them move their internal marketing systems to support what it calls a “portfolio-management” approach to marketing that has all corporate assets digitized and available on demand…After closing its deal to acquire DoubleClick last week, it can move ahead to extend… always-on marketing into forms of assets beyond simple text ads, including display, video and audio. What’s more, thanks to behavioral targeting, advertisers are increasingly able to reach discrete audiences, meaning their budgets can go farther.

“As targeting gets more refined, marketing will be more efficient and the mind-set will shift to serving key audiences on a more continuous and on-demand basis rather than push messaging,” said Jeff Marshall, digital managing director at Starcom USA.

Of course, Google executives go even farther. As long as the matching of customer demand to advertiser is right, Penry Price, Google’s director of North American sales, said, “the budget is almost irrelevant.”

from: “Flights of Fancy? How social media and search are extending the life of marketing campaigns.” Brian Morrissey. Adweek. March 17, 2008

excerpt from new DoubleClick job posting: “The newly formed Emerging Media Team is currently searching for a seasoned Program Manager to help introduce and expand the team’s offerings in Social Media and Services. The Program Manager (PM) is responsible for ensuring successful execution of select Advertisers’ social media ad buys and social media presence (i.e. page creation and management, buzz creation and monitoring, application development and distribution, etc.). The PM is charged with building strong relationships and establishing clear lines of communication with their advertisers, specialist partners, and internal resources including members of account management, search and affiliate program management, sales, and the publisher development teams. The PM is resourceful in leveraging their social network and buzz marketing knowledge, technical skills, client service experience, analytical and problem-solving capabilities, and organizational skills to ensure flawless program execution that drives insights and helps define future client/publisher opportunities and social media and services offerings.”

from “Program Manager, Social Media and Services, DoubleClick Performics

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Google, Microsoft, others: Tracking our every interaction to determine the click that delivers for advertisers

excerpt: “DoubleClick and Atlas have both been working on a process commonly known as multiple attribution protocol (MAP). As storage is cheap, we can now keep in the data cube all digital interactions of a consumer with a campaign. Every view, every click, every visit to a site, whether click-through or view-through… MAP reporting and algorithms will permit us to take into account the underlying banner and other campaigns that happen prior to the final action. With this methodology, we’ll be able to consider other actions besides the last click for partial attribution. DoubleClick has a reporting process in release now and Atlas is said to be releasing reporting and algorithms into beta in Q1 of this year.”

from: “The New Metrics Landscape.” David L. Smith. imediaconnection. January 29, 2008

AOL’s Privacy “Penguins”–Time Warner Skating on [Very] Thin Consumer Protection Ice

The senior management over at Time Warner must be `in treatment’ with some of their Looney Toon characters. How else to explain the ludicrous use of cartoon penguins that will soon be deployed to really misinform consumers about how and why their data and personal information are being collected and harvested for microtargeting purposes. It’s really shameful that the Time Warner, its Platform A targeting service, and the AOL division are hiding behind these well-liked creatures. But they are doing so because the company doesn’t want to be honest with its users. What Time Warner should be telling consumers are some of the things it pitches to perspective and current advertisers. For example, it should tell consumers that they are being tracked and followed online so advertisers will know they are “demonstrating a specific behavior.” Or that it’s “an advertisers dream–the ability to target consumers…across thousands of websites…[while they] research their options…Through behavioral targeting–and retargeting–we keep your brand top of mind during this crucial consideration phase.” Or that when we are watching online video, Time Warner informs advertisers that it can tell them “[H]ow long did consumers view your ad? Did they visit your website as a result? Better yet, did they visit your store? Online video takes the best of TV and the best of online to create the ultimate solution–high-impact advertising with measurable results.”

Or that it can help them get “leads” for future pitches (think mortgage loans, etc). Will AOL’s Penguin say that it will give marketers “a high-volume” of leads that will “convert into an actual customer…that perform best for your goals.” Or that it can identify our behaviors and then place us for sale as part of consumers profiles to be targeted (such as whether they consider us to be a “Traveler, Health Seeker, Entertainment Buff, Auto Intender or Trendy Homemaker”), which include information about whether we have children at home, how much money we make, or our gender? I hope our Penguin will be telling consumers (and the FTC and the EU’s Article 29 Working Group) that its “insight Reports” provide marketers with “deep knowledge” [our emphasis] “[B]y combining TACODA behavioral segments with comScore’s MediaMetrix® database of online consumer demographics, Web site visitation patterns, and eCommerce buying power index, TACDOA is able to discover previously unknown key behavioral traits that may be non-intuitive and even counterintuitive behaviors. Our pre and post campaign analyses will help you identify your strategically important audiences in a snap.”

When asked to testify before Congress, as it debates privacy safeguards, we hope Time Warner’s Penguin will be able to explain its “Audience Point” service, which promises advertisers that they will be able to “[R]each the right audience….without waste…the first precision targeting solution giving audiences direct interaction with their likely customers.” Or that Time Warner, via Leadback.com, promises to “helps you reach your site visitors after they exit your site – reinforcing your brand positioning and driving users back to your site to complete a desired action. LeadBack.com – converting browsers into buyers, and buyers into repeat buyers.”

Time Warner and the online ad industry have to be honest with consumers and citizens. They shouldn’t engage in playing games when it comes to protecting privacy. Here’s the real penguin Time Warner and AOL should be using:


The Penguin, as seen in Detective Comics

Google’s target as it absords DoubleClick: “big world of brand and display dollars”

One phase of the regulatory review is over, but the effort to protect privacy online continues. The work of EU and U.S. privacy and consumer groups during the merger encouraged officials on both sides of the Atlantic to more closely examine online data collection practices of Google and others. We believe that EC privacy commissioners will continue to press for more effective safeguards. We were told that the EC competition authorities met resistance to their merger analysis from other officials concerned about privacy and media diversity. In today’s digital media era, the diversity of content creation, protecting privacy, and the competitiveness of the online ad business are intertwined.

We intend to keep our Google watch (along with our focus on the online ad industry). Today’s Advertising Age article on the Google/DoubleClick merger gives a sense of where the search leader is headed [excerpt. our emphasis. subscription required]: Google executives were meeting with reporters in their New York office this morning when the official news came through. “There’s a big world of brand and display dollars we haven’t been as aggressive in or played in,” Penry Price, VP-North America sales for Google, said at the meeting… “We want to build on top of that platform [DoubleClick’s] and create next-generation tools to work with marketers and agencies to have an end-to-end solution from planning to reconciliation”….”I think would we be disappointed in 2008 and 2009 if we don’t have a very significant presence in the display marketplace,” Google President-Advertising Tim Armstrong said yesterday at the Bear Stearns Media Conference.

PS: Here’s what JP Morgan said, in part, about the consequences of the Google/DoubleClick merger in a report released yesterday: “Better targeting opportunities. Google will now have behavioral data from search, email, video, and web usage on network sites. We believe this will allow the company to provide much better ad-targeting, leading to increased CPMs on DoubleClick sites.”

The EC approval of Google’s DoubleClick takeover

Statement on the EC Decision on Google/DoubleClick
Jeff Chester, Center for Digital Democracy

By failing to impose safeguards, EC regulators have helped strengthen a growing digital colossus that will now be in a dominant position to shape much of the global future of the Internet and other online media. The EC [DG Comp] appears to have embraced the FTC’s flawed analysis of the online ad market. It represents the failure of antitrust regulators to understand and respond to the growing consolidation of control over online ad delivery, data collection, and the funding of content. This decision will have profound and unfortunate consequences for the Internet’s evolving role as a democratic communications medium.

EU and US antitrust regulators have also perversely set the stage for Microsoft’s goal of acquiring Yahoo!, furthering more concentration of control in the new media sector. Instead of ensuring competition, DG Comp and the FTC have literally paved the way for the emergence of a global digital duopoly over online advertising (which is the principal way online content is funded). By permitting Google to dramatically grow in clout, regulators will have to likely enable the further growth of a # 2 competitor to Google—which will be Microsoft.

US and European policymakers must reform the antitrust process to reflect the realities of the digital market era, where competition, data collection, and content creation are seamlessly intertwined. In today’s digital marketplace, the company that controls the most data about consumers and has the global reach to connect to them raises both anticompetitive and privacy concerns. An antiquated and piecemeal antitrust approach fails to protect citizens, consumers, and competition.

The Center for Digital Democracy, which opposed the Google/DoubleClick merger in both the U.S. and in the EC, will continue to press policymakers to play a more responsible forward-thinking approach to competition and consumer protection for online and interactive media.