Google+DoubleClick will = “the dominant player in behavourial targeting”

No, that’s not just CDD and other privacy advocates warning the public about this. It’s a quote from a panel held this week in Brussels by the “conservative think-tank, the Centre for the New Europe.” Here’s an excerpt of a story that quotes panelist Wayne Arnold from the Institute of Practitioners in Advertising (IPA) and digital ad agency Profero: “Google is increasingly becoming the dominant player in the digital advertising space in Europe. If the Double Click acquisition goes through, this will provide Google with unrivalled access to consumer data and a foothold in the display media space – an area in which until now they have been relatively weak.”

The next big thing in online advertising is behavioural targeting, said Mr Arnold. This is a technique whereby advertisers increase the effectiveness of their campaigns by using data collected from someone’s web-browsing behaviour – that is to say, what sites they have been to and what things they have searched for.

The advertiser then uses this information to deliver adverts tailored to the perceived interests of the websurfer. The The Double Click deal will make Google “suddenly the dominant player in behavourial targeting,” said Mr Arnold.”

source: “Google-Double Click merger raises privacy concerns.” Leigh Phillips. Euobserver.com. 3/7/08.

Google (and UC Berkeley’s) Hal Varian’s failure to communicate on privacy

UC Berkeley professor and currently Google chief economist Hal Varian in a company blog post conveniently dodges the real reason why Google desires our search data. Notably missing from Prof. Varian’s “Why Data Matters” is any mention of online marketing. He fails to acknowledge that data “matters” to Google because its how Varian and other Google employees get paid–via the 99% of annual company revenues derived from interactive advertising and marketing.

As Google’s chief economist, Prof. Varian should do a new post where he identifies the financial benefit Google receives when it collects data about our searches, YouTube views, and interactions with interactive advertising.

Yahoo! Says its “Largest Publisher on the Web”

Part of our series on digital media marketing mergers, Microsoft-Yahoo! division. Via Yahoo!’s Sue Decker blog post:

“As the largest publisher on the Web that also leads in display advertising, and holds a strong number two in search, we maintain one of the world’s largest advertising networks and operate the Right Media Exchange. We’re truly in the best position to understand the evolving needs and demands of the entire ecosystem.” Ms. Decker explained that Yahoo!’s “cutting-edge” Apex platform “will enable all participants in the ecosystem to benefit:

  • Publishers will be able to better serve their advertisers’ needs by making it easy for publishers to sell, package, and distribute other publishers’ inventory alongside their own, giving advertisers extended reach to audiences across the Web through a centralized platform.
  • Advertisers will be able to spend more time on driving revenue and developing compelling creative for their audiences, rather than dealing with the complexities of ad generation, assembly, trafficking, and serving ads.
  • Advertising agencies will be able to streamline the buying process for multiple accounts across multiple publishers and allow for creative testing and campaign optimization, even as the campaign evolves.
  • And last but not least Advertising Networks will benefit from having a platform that connects publishers to the best advertisers for their site and audience, and advertisers to the best publishers with the most relevant audiences, thereby increasing both their reach in the process.”

The emerging online health field requires meaningful privacy and interactive marketing safeguards to prevent the exploitation of American consumers. Google, Microsoft and many others see digital gold from the online targeting of medical-related products & services. There will be a flood of personalized pitches from the Big Pharma brands, health remedies, and over-the counter remedies. Yesterday, CDT sent out an email saying that “[N]ext week the Center for Democracy & Technology will announce a major health privacy initiative that will emerge as the major player in this converging field, poised to stand in the gap, bringing providers, industry and consumers to the table to build workable solutions and impact policy makers.” The CDT missive explained that “[A]ddressing these issues requires a strong, credible voice, that combines privacy and technology expertise with a deep understanding of the health care system and the goals for information technology; a voice with privacy policy experience and an understanding of how technology can be used to improve health care.”

The health of the American public in the digital era will be directly connected to the policies we enact governing medical micro-targeting, data collection, and online marketing. Groups have to stand up for what is right for consumers. The new CDT effort–along with the online health data and marketing initiatives–will require close scrutiny. Protecting health-related privacy and ensuring safeguards for digital medical advertising are essential if we are going to engage in prevention.

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Consider this a form of `let’s help Google try and be more honest about privacy and data collection’ public service.

Excerpt from PC World:
Google’s YouTube will soon give marketers more data about viewership of its videos, so that they have a better understanding of clips’ reach and effectiveness at boosting brand awareness and sales.

The online video site plans to make more granular metrics available in this year’s second and third quarters, including data about the usage of YouTube videos that are embedded in external sites, said Brian Cusack, YouTube sales team manager.

“YouTube has enormous amounts of data, but not great reporting on that data yet,” Cusack said during a keynote speech at the eRetailer Summit….YouTube…is building models to distinguish content that is universally interesting from content that is locally interesting, in order to make that useful for its advertising customers, Cusack said.

YouTube to Improve Usage Metrics: New data about Google’s YouTube video viewership will be availabletp marketers. Juan Carlos Perez. IDG News. March 3, 2008

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Microsoft is set to acquire behavioral microtargeting and “marketing automation” specialist YaData. YaData’s software helps identify “behavioral micro-segments” [thats our behaviors, btw]. As YaData explains, “[M]icro-segments may overlap, reflecting the true multi-dimensional nature of customers and their changing habits. The continuous dynamic discovery and management of focused micro-segments allows marketers to understand and act upon changing market trends and gain rapid results for a real competitive differentiator. In order to act upon these changes, it is vital that marketers be able to routinely and autonomously launch the discovery process and manage the entire segment lifecycle…” [the managing, we presume, is of people’s behaviors and attitudes].

“YaData fully believes in the potential of behavioral targeting to enhance the value of online advertising for publishers, advertisers and users,” said Amir Peleg” in the press release announcing the sale. Microsoft officials claimed that as YaData’s technology became part of the company’s “advertising platform” they would “continue to adhere to its high standards for the protection of consumer privacy.” As Microsoft moves closer to acquiring Yahoo!, privacy advocates will need to analyze how the company’s recent acquisitions and developments related to online advertising require real safeguards–not just a reflexive we-care-about-privacy approach.

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David Cohen and Brian Roberts need to be sent to reform school. That’s public interest and media reform, although Comcast’s arrogant behavior regarding bandwidth throttling and seat-grabbing at public hearings suggests that Cohen and Roberts deserve to be sent up the lack of corporate responsibility river. But Pennsylvania Governor Ed Rendell, long a Comcast favorite and Cohen’s former boss, would probably pardon them.

Comcast shareholders should be alarmed. At a time when cable’s future growth has never faced more challenges, the company’s leaders are engaged in a reckless attempt to shore up market share and suppress free speech. Such behavior discredits the company, including its board (Rockefeller Foundation head Judith Rodin serves on the board, btw). Comcast owes the country an apology for its actions. If it engages in a `we’re a big powerful monopoly and can do what we want’ attitude, it will become the poster child of a media company that most users, especially youth, will loath. Shareholders, the press, and advocates need to bring real reform to Comcast, before it becomes the brand we love to hate–and bypass.

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The departure of Deborah Platt Majoras should mark the closing of the special-interest revolving door at the FTC

Deborah Platt Majoras came to the FTC as a corporate lawyer who had represented Chevron Texaco while at the Jones Day law firm. Under her watch, the FTC failed to make any real advances protecting consumer privacy, ensure an open Internet (network neutrality), and promote competition and diversity in the key online marketing sector (Google/DoubleClick, for example).

The FTC should have a chairman and commissioners whose background indicates a strong commitment to consumer protection. They have to be willing to take on the powerful special interests, much of which will be from the big business sector. We need to stop business as usual, where yesterday you were a top corporate lawyer–then you are at the FTC–and soon, back in a well-compensated corporate boardroom. In Deborah Platt Majoras’s case, she is to be a top counsel for the Procter and Gamble company, according to press reports (her former law firm Jones Day has represented P&G, btw). The next administration must appoint officials to the FTC–and the FCC–who are in the orbit of the special interests. The cozy K Street golden revolving door should be sealed shut. If the country is to tackle the problems facing it, it requires consumer champions and business visionaries who understand what is at stake.

I would be remiss if I also didn’t remind readers that my group and the Electronic Privacy Information Center asked Chairman Majoras to recuse herself on the Google/DoubleClick merger, once we discovered that her husband’s law firm Jones Day represented one of the parties. She refused, and groups have asked the FTC to turn over documents related to the case. We intend to pursue this, of course, despite her departure. But the real point is that we need officials at the FTC who have demonstrated through their previous work and intellectual perspectives that they represent the concerns of average Americans—not multi-billion dollar law firms, Fortune 1000 corporations, or well-connected trade associations. In the 21st Century, anti-trust and consumer protection plays a crucial role in the operation of the digital marketplace. That alone is reason enough to make who becomes a FTC commissioner an important public policy issue for those who care about serious reform.

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Murdoch’s MySpace uses behavioral targeting to harvest data of its users, including when they are having a baby or going off to college

From the mouths of data collecting social network executives, via Online Media Daily:

“…Heidi Browning, the senior vice president of client solutions for Fox Interactive Media, cited some impressive results from behavioral targeting using data from MySpace–including a 733% lift in brand awareness, 800% lift in recall, 152% increase in brand favorability, and 179% increase in purchase intent.

She added that social networks like MySpace are ideal places to harvest data for behavioral targeting because consumers voluntarily provide detailed information about a host of behaviors and attitudes–including, for example, media consumption and brand preferences as well as simple demographic descriptors, age, education, and geographic location. From these, Fox assembled a number of enthusiast and lifestyle segments, broadly grouped in 10 super-segments, with at least 3 million and as many as 10 million members each.

According to Browning, MySpace data can tell marketers when a user “is moving, having a baby, going to college”–but also more subtle information including receptivity to ad messaging at different times of day. With other data sources, like DVR records, she said MySpace information will allow “hyper-targeting” of consumers, delivering the right kind of ad message via the right medium at the right time of day.”

source: “Behavioral Targeting: A Brave New World… Maybe.” Erik Sass. Online Media Daily. Feb. 26, 2008 [reg required]

Time Warner’s `Platform A’ Data Collection System: 3 billion online ads a day bolstered by $1 B in online ad company acquisitions

Time Warner has been buying up online ad properties to bolster its AOL and Advertising.com subsidiaries. AOL exec Randy Falco, as reported in Advertising Age [Feb. 26, 2008, sub. required likely] told interactive marketers that “[W]e have Platform A, the largest ad network in the world.” Falco said that 3 billion ad impressions were being delivered daily by the AOL networks. He also said that “[W]e spent with the help of Time Warner about a billion dollars to acquire [Quigo, Tacoda, Third Screen Media and AdTech] over the past year.”