Category: broadband

European Commission & Privacy Authorities Should Investigate Behavioral Targeting & Privacy Threats

As US and EU policymakers and privacy advocates gather for a discussion of the 1998 EU Data Directive and the subsequent “safe harbor” deal with the U.S., it’s time the EU recognize that they are overlooking new threats from online marketing. Anyone who follows online advertising in Europe knows that advanced forms of targeted interactive marketing and data collection is being pioneered in places like the U.K. While the Article 29 Working Groups has, fortunately, expanded its investigation on related issues, esp. IP address retention, it’s time EU-based privacy officials cracked down on behavioral targeting [BT]. Here is an excerpt from a recent online marketing trade article that illustrates how quickly BT is now part of everyday life in the EU:

“Behavioural targeting has come a long way in the U.S. in the past four years, but the rapid growth across Europe (and even in South Africa), is proving that a technology can be seamlessly integrated at the local, national and international levels without batting an eye…A major advantage that the European market has parlayed into behavioural targeting success is the clear identification of which categories behavioural targeting responds to the most positively, and then the clear understanding of how to make those categories successful…So, where is behavioural targeting going next in Europe? Recently we have seen behavioural targeting successfully implemented in The Netherlands (with Telegraaf Media Groep), one of the largest media companies in Portugal (Cofina) is in implementation and a major publisher in the Scandinavian
market is about to implement the technology. This expansion out across Europe into new markets is a direct result of the success seen in the U.K. and other markets and shows that behavioural targeting is just hitting its stride.

From: The past, present and future of behavioural targeting. Jeremy Mason. imediaconnection. Oct. 9, 2007.

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Doubleclick’s Data Capture Cookies Reach 100-plus million Net users a Month

We wanted to place this stat on our record. ComScore did a report in June 2007 where it examined [my italics] a “a passive first-party unique identifier cookie for a major Web property (Yahoo!) and a passive third-party unique identifier cookie for a major ad server (DoubleClick). Each cookie is believed to be representative of cookies delivered to the U.S. Internet population and each reaches well in excess of 100 million Internet users per month. These two cookies were selected to maximize reach across the Internet user base to provide as complete a view as possible of consumers’ overall cookie management behavior. The study is based on activity observed within approximately 400,000 home computers during the month of December 2006. This sample was statistically weighted to represent the U.S. home Internet user population along key geo-demographic variables.”

Clearly, Doubleclick gathers tremendous amounts of user data and is considered the standard for testing usage behavior across the Internet platform. Its merging with Google poses serious threats to consumer privacy, whether cookies are crumbled or not.

source: comScore Cookie Deletion Study.

The Hidden Power of Doubleclick’s Databases

Here’s an excerpt from a new trade story. We think it’s relevant to the Google merger review, including the issue of data access and privacy. “excerpt: “Well, it turns out that the “raw” numbers we are using aren’t really raw. They look “raw” to us because 99.99% of the agency people do not have access to (or even want to look at) the raw raw. The raw raw is what the insiders would call log files. They are usually sitting with adservers (DoubleClick, Atlas, etc) and in their databases. Yes, you heard me right. There are databases, humongous ones that collect and compile cookie-level information. And there are database experts, lots of them. We do not see them, because they are not agency people. They work for adservers and sit behind the shields of adserver’s account reps. So in the end we are very much like a database marketing operation, except that in our case database and marketing are siloed in two different organizations.”

from: “The Magic Window.” Chen Wang. Online Metrics Insider. Oct. 12, 2007.

Doubleclick: Self-Proclaimed "Nerve Center of Digital Marketing"

We believe Google is telling reporters and others that the FTC staff have said the merger is approved. Our information is that’s not true at all. If Google is engaging in such a PR campaign, it’s another indication that corporate lobbying goals–not honest debate–is more important to its leadership and culture. Of course, the commission prohibits such information being told to the merger-related parties and the public. Our sources tell us that the staff is only half-way through its review. And that’s before the EC begins what we hope will be an intense analysis of Google’s market position–including the data it will have unfettered access to, if a Doubleclick deal is approved.

But back to Doubleclick. Last Spring, it unveiled a new “brand” identity, declaring itself the “Nerve Center of Digital Marketing.” The company proclaimed that it was “the premier provider of digital advertising technology and services…serving the world’s leading buyers and sellers of digital media.” And just to remind the good folks over at the FTC. Here’s how the company describes itself: “The world’s top marketers, publishers and agencies utilize DoubleClick’s expertise in ad serving, rich media, video, search and affiliate marketing to help them make the most of the digital medium. From its position at the nerve center of digital marketing, DoubleClick provides superior insights and insider knowledge to its customers. Headquartered in New York, and with 17 offices and development hubs and 15 data centers worldwide, the company employs more than 1200 people and delivers billions of digital communications every day. Learn more at www.doubleclick.com.”

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Doubleclick at the Brand Summit: Glimpse of Ad-enmeshed editorial future

There was an interesting exchange at a recent imedia Brand Summit event, which you can witness on this video at approximately 7:12 minutes. Chris Young, Doubleclick’s EVP for “Rich Media & Emerging Division” (I kid you not. That’s his job title) asked a question of speaker Sean Finnegan. Finnegan is the CEO of OMG Digital, a new Omnicom global division advancing interactive marketing. Finnegan was touting a viral campaign to drive (literally) young folks from bars directly into `were open all night’ McDonalds. Doubleclick’s Young reflected on the work his company and other major online marketers are doing to create an “embedded relationship, friendship, with the consumer.” He cited the trend among Doubleclick’s clients to develop “long-form webisodic content, creating a series.”

Finnegan’s reply was very telling–and should serve as another wake-up call for all those who care about the further merging of editorial content and advertising. He explained that agencies are “merging the digital groups with the entertainment marketing groups,” expanding what they had been previously doing with such approaches as “plot integration.” Interactive advertising, marketing, big brands, and editorial content all intertwined is the basic business model for much of the new media world. That’s why we should address now–before it’s too late–what the rules, safeguards and alternatives should be.

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Yahoo! No Competitor for Google (and neither is MSN!)

excerpt from: “Yahoo Worth More Divided Or Sold: Analyst”

YAHOO’S VALUE WILL NOT BE unleashed until it is broken up or sold, Sanford C. Bernstein & Co. analyst Jeffrey Lindsay said in a research report last week. “To stop the inevitable slide into irrelevance, the management team must consider more radical actions and strategies,” Lindsay wrote. “Incremental changes to rebuild revenues simply won’t cut it this time.”…
Yahoo could be broken into ad and subscription businesses to reach his $39-a-share estimate, Lindsay wrote.”

article by Laurie Petersen, executive editor, MediaPost.

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Reading the Google merger tea leaves in the trade press

Just for the record, here are 3 excerpts from trade articles we believe are relevant to the merger review.

1. “Ad networks given last chance to question Google-DoubleClick deal” [NMA Magazine (UK). 13.09.07]

British ad networks have expressed strong concerns to the EU over the $3.1bn (£1.53bn) Google buyout of ad serving giant DoubleClick. As the deadline for responding to the European Commission’s Directorate on Competition draws near, the industry warned that there would be problems with the merger…Networks have responded to consultation from the Commission about any problems they have with the merger deal, announced in April. This is the last formal way for companies to express their concerns with the merger, although some remain cynical as to whether it will make any difference.

Phil Nott, sales director at Adrevenue, said networks should still send through their objections. “People have accepted this is going through too easily. If they knew they could send in their views and get a chance to block it, then maybe more would speak up about their concerns.”

2. Do Home Pages Have a Place in Web 2.0’s Future? Advertising Age. Oct 1, 2007.

“The report, out today, will serve as a “sanity check” for some early Web 2.0 adopters and technophiles. And, he said, “for more traditional marketers, there’s a whole new world we have to introduce them to.” One of the most surprising things the team found was how many people are starting their online shopping with search — more than 54% of the study’s panel, in fact. The idea that more consumers are coming to brand sites through the side door of search means search engines are starting to circumvent brands when it comes to online shopping. While a consumer looking for a pizza stone offline might drive to her nearest Williams-Sonoma, in the online world she’s more likely to just type the product name into Google and see what comes up.”

3. “Out of the Box: More Than Nine Billion Videos Served.” Brandweek. October 01, 2007
In July, Americans viewed more than 9 billion videos online, according to comScore’s Video Metrix report. Nearly 75% of U.S. Internet users watched an average of three hours of online video during the month.

Google Sites topped the July rankings with the most unique viewers and most videos viewed. Nearly 2.5 billion videos were viewed there (a 27% share of videos)—a full 2.4 billion at YouTube.com. Yahoo! Sites ranked second with 390 million (4.3%), followed by Fox Interactive Media with 298 million (3.3%) and Viacom Digital with 281 million (3.1%).

Germany state privacy commissioner warns about unique threats with Google/Doubleclick

It’s so telling that Google keeps trying to change the subject, suggesting that concerns about privacy and its proposed takeover of Doubleclick should be confined to a larger discussion focused on the online marketing industry as a whole. Google should stop trying to shift the debate, and forthrightly address the unique issues. Yes, we need a discussion–and a national, effective privacy policy for online communications. But the Google planned acquisition of Doubleclick raises unique concerns. That’s why this press report about the letter sent by a German state data protection commissioner is important. They get it. Here’s an excerpt from an English-language news report, that includes link to the letter sent to the European Commissioner for Competition: “The Data Protection Commissioner of the German federal state of Schleswig-Holstein Thilo Weichert has expressed grave reservations about Google’s acquisition of the advertising marketing company DoubleClick. “At present we have to assume that in the event of a takeover of DoubleClick the databases of that company will be integrated into those of Google, with the result that fundamental provisions of the European Data Protection Directive will be violated,” the head of the Independent State Center for Data Protection of the federal state of Schleswig-Holstein (ULD) in Kiel writes in a letter addressed to Neelie Kroes, the European Commissioner for Competition. The merger of the two Internet companies “would thus lead to a massive violation of data privacy rights” of consumers in the European Union… The coming together of Google and DoubleClick would thus as a consequence lead to even more detailed analyses of personal data and make the creation of user profiles possible. “Such an approach contradicts fundamental data privacy principles of the European Union: limited specific use, transparency, the right to object, the protection of sensitive data and the right to having data deleted,” the head of the ULD observed.”

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Dissing the FTC’s Privacy and Online Marketing Efforts: Some Behavioral Targeting Marketers

At Monday’s OMMA conference, what was both astounding and sad was the almost total absence of corporate responsibility regarding data privacy (among many other issues, which we will turn to later). At a workshop sponsored by Blue Lithium (now being acquired by Yahoo!) a company exec remarked that the current FTC inquiry into digital marketing and privacy wouldn’t result in any serious change. He suggested the FTC would, in essence, `go away,’ just as it did after the establishment of the meaningless NAI self-regulation guidelines in 2000. Those rules were put in place to quell any serious FTC action on online profiling.

The online ad industry should admit there’s a real problem, with privacy and many of the techniques underlying interactive marketing. Then we can move on to meaningful safeguards. Meanwhile, here’s an excerpt from the handy guide Blue Lithium distributed Monday, entitled “Behavioral Targeting: The Good, The Bad, The Ugly.” “Behavioral targeting tracks consumer Internet activity (sites and sections/pages of sites visited, links clicked on, ads seen and responded to or not responded to)…Behavioral targeting follows an audience around the Web…Placed on a homepage, product or category page or into an ad unit, the behavioral targeting pixel marks each visitor. Later, this data is used to target prospects as they visit other sites across the Web.”

Doubleclick Does Mobile Ad Collection/Targeting. Waiting for GooglePhone?

excerpt: “DoubleClick Mobile will integrate with DART for Publishers to provide ad trafficking and yield optimization for campaigns designed to appear on phones. Additionally, the company plans to release a mobile ad management product for advertisers sometime in 2008, according to Ari Paparo, DoubleClick’s VP of rich media and emerging technologies…DoubleClick Mobile aims to bring “a lot of heavy iron” to the developing marketplace for ads on handsets. The product is capable of pairing ads with content according to the screen size and capabilities of the device being used to view them, and supports device-specific previews for each ad position and execution. In addition to standard mobile display ads, it supports ad formats such as combination ads and roadblocks. Through pixel-based ad tracking, agencies and other third parties can access campaign performance data through their own campaign reporting systems..

DoubleClick Mobile is launching simultaneously in the U.S. and Europe… Next year, the company plans to release a more comprehensive mobile ad management suite that includes tools for agencies to plan and track their mobile campaigns…

DoubleClick Mobile comes just a week after Google, its probable soon-to-be parent, opened publisher enrollment for its AdSense for Mobile program.”

from: “Doubleclick Launches Site-Side Mobile Ad Management, Advertiser Version in Development.” Zachary Rodgers. ClickZ. September 24, 2007

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