Category: Time Warner

The Microsoft/Yahoo! Threats to Privacy Issues Exemplied by Ad Industry Reaction to Deal

Once again, we thank the ad industry for writing our blog (and regulatory!) copy: “”I think what we lose in being able to negotiate with both of them we’ll gain with new opportunities. The biggest opportunity would be to leverage Yahoo’s behavioral targeting across Microsoft’s relationships with Facebook, XBox and Massive, which has the ability to dynamically insert ads in console games.”–Andrea Kerr Redniss, SVP, Optimedia US.”

from: Madison Avenue: We Love MSFT-YHOO. Silicon Valley Insider. Feb. 1, 2008.

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Behavioral Advertising: Targeting “Users Further Down the Purchasing Funnel”

When you can get the online ad industry to write your copy, it makes the work at the FTC and the European Commission so much easier! Here’s an excerpt from a revealing imediaconnection article entitled “Targeting Tips for a Converged Media World.” [Jan. 30, 2008]
“In days past, audience segmentation was based solely on demographic and contextual targeting information, which allowed advertisers to promote their products or services to a group of potential consumers based on their gender, age and other fairly unsophisticated, generic characteristics. In the online world, consumers now essentially determine their own segmentation based on individualized habits, determined through behavioral targeting…. Behavioral targeting…is also an additional way for marketers to target users further down the purchasing funnel and helps marketers better predict how users will act… Marketers will be able to track individuals or user clusters across their favorite TV shows, travel habits through their car’s GPS or obtain their video game proficiency through in-game advertising… As users age and change their personal preferences, behavioral targeting can change with users’ habits and compensate accordingly…With marketers able to include interactive components into traditional media outlets while infusing behavioral knowledge and targeting, advertisers must create messages that can be delivered across all platforms. For example, we could see mobile ads that use interactive elements if marketers know the behavioral cluster exhibits a preference for interactive media.”

Google’s Privacy PR: Here’s What They Sent to Reporters. But real safeguards are required, especially in the GoogleClick era

Yesterday a reporter sent me the following email sent from the Google PR shop. Instead of calling for responsible policy safeguards to protect consumers, Google is distributing booklets, videos and other self-help materials (in other words, let the user beware). It’s not surprising that Google is on a PR effort to quell the growing calls for real privacy protection. But they are not living up to their own ideals if they fail to really be more candid about the conflicts they have with a business model entirely based on data collection and targeted marketing.

Here’s the email:

“From: “Adam Kovacevich”
To: undisclosed-recipients:;
Sent: Monday, January 28, 2008 12:23:11 PM (GMT-0500) Auto-Detected
Subject: Happy Data Privacy Day

Okay, okay, so you can be forgiven if you didn’t realize today was Data Privacy Day here in dear old North America. At Google we’ve been doing a lot lately to educate our users about our privacy policies (particularly the launch of our Google Privacy YouTube channel ), but we figured today was a good day to unleash a few more education efforts. To wit:

• A brand spankin’ new video on the YouTube channel explaining how cookies work: http://youtube.com/user/googleprivacy
• A new booklet ( http://64.233.179.110/blog_resources/google_privacy_booklet.pdf ) that gives our users an in-depth look at our privacy practices and approach. This should be a particular good resource for you journos too.
• We’ve co-sponsored the creation of educational materials ( https://www.privacyassociation.org/images/stories/pdfs/DPD08_TeenPrivacyOnline_slides.pdf ) on teen online privacy for parents and educators.
• Our senior privacy counsel Jane Horvath is today joining legal scholars, privacy professionals, and government officials from Europe and the U.S. at an international data privacy conference being held at Duke University in Durham, North Carolina.

For more on all of this, check out our blog post:

http://googleblog.blogspot.com/2008/01/celebrating-data-privacy.html

or background from the Search Engine Land blog:

http://searchengineland.com/080128-095148.php

Adam

—
Adam Kovacevich | Sr. Manager, Global Communications and Public Affairs | Google
1101 New York Ave NW | Second Floor | Washington, DC 20005 “

IAB and its Proposed Privacy Guidelines: Will Fail to Effectively Protect the Public

So relieved where some in the interactive ad business when they read the FTC’s staff proposed privacy principles released last month that commentators described the reaction as the industry had “dodged a bullet” and “breathed a sigh of relief” [“FTC Online Ad Targeting Guidelines: Industry Breathes A Sigh Of Relief”].

Now Paidcontent describes plans underway by the IAB to offer “privacy standards,” via a “15-member working group,” that includes Time Warner, Microsoft, Yahoo! and others [“Online Ad Industry Groups Take Steps To Self-Police”]. According to the January 4, 2008 article by David Kaplan “[T]he IAB task force will address issues of consumer notice and choice, in terms of deciding the context for selecting opt-in or opt-out.”

IAB lobbyist Mike Zaneis says in the article that “[T]he level of appropriate choice needs to be flexible…consumer regulation will prove to be more efficient and powerful than government regulation.” Zaneis considers the campaign against Facebook that resulted in some modest–and ineffective in my view–changes in its data collection system as an illustration of “consumer regulation.” It’s clear that the IAB is incapable of developing a policy that will protect consumers. Anyone who understands the contemporary dimensions of the interactive marketing industry–and has the public welfare in mind–should recognize what is required. The IAB will not be taken seriously if it can’t deliver the truth (it’s so far failed to protect the public from troubling online lead generation practices, for example. See our November 1, 2007 FTC filing). Yahoo!, Microsoft, Time Warner and others on the committee should lead–and not follow–advice from the IAB that will lead to prolonged political conflict–in Europe, in Congress, at the FTC and FCC, and with the incoming Administration.

Real governmental rules are required–including measures that effectively protect every consumer and also address vulnerable groups and sensitive marketing issues. The IAB’s old school Beltway mentality will likely give online advertisers a bad name. Where are the ad industry’s thoughtful leaders who can help steer the IAB in an honorable direction?

The Interactive Ad Bureau: Its Political Posture is a Liability for the Advertising Industry

On December 14, the head of the U.S. Interactive Advertising Bureau–Randall Rothenberg–wrote a commentary for the Wall Street Journal (“Facebook’s Flop” sub. required) that will be used by graduate students someday as an example of what shouldn’t be done to help an industry address a political crisis. Using old cliches, scare tactics, name-calling, the piece reflects a real failure on the part of the IAB to address an important policy issue that affects everyone–including families. It also shows an inability to recognize concerns about online privacy in an historic context. Such an approach may be useful for rallying some of the old guard. But more sophisticated advertisers and marketers will recognize that the online ad industry doesn’t benefit from embracing such an approach.

So instead of saying that there has long been a concern about online privacy, including for children, we are called “anti-business groups.” Instead of admitting that advertisers and marketers are shaping the new media system so it can better track and target us all, the IAB head claims “the consumer is in control.” Instead of admitting that it was the request made by my group and others for the FTC and the European Commission to investigate Facebook’s “Beacon” system, it says that it just took Moveon to force a (partial) retreat (anyone who has political savvy recognizes it was the combination of Moveon’s organizing, the raising of public policy concerns, and advertiser skittishness that led to the Facebook change). The commentary claims we are calling for “the banning of behaviorally-targeted ads.” But almost everyone else recognizes that we have called for meaningful privacy safeguards for behavioral and interactive marketing practices that would protect consumers.

Finally, the oldest canard in the business is used, claiming that without advertising all the “free” content online would disappear. “Advertisers are paying for it,” it is said. Nothing about how consumers ultimately pay for all this–including now their loss of data, privacy and autonomy.

Anyone with insight into where we are historically with interactive media and marketing should recognize that the privacy and marketing related issues must be honestly dealt with. Old style lobbying may show some muscle, but will backfire. Here’s hoping 2008 will bring the gift of better reflection at the IAB–to its officers, board members, and members.

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The evolution of targeting users online (or, "Oh where oh where has our privacy gone")

An excerpt from a recent trade piece that should encourage reflection and concern (our emphasis):

“Today, we can not only target by the sites we think our customers frequent, we can follow them around the Web and target them based upon the other sites they actually visit. We can also target them based upon the words typed into a box, and from where those words are typed through search geo-targeting. We can also retarget searchers elsewhere on the Web. Facebook’s recent announcements take targeting to a whole new level, based upon age, location, interests, and other online activity.”

Source: “Search And Online Advertising: A Continual Evolution.” Ellen Siminoff. Search Insider. November 16, 2007

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IAB creates new post: "SVP, Thought Leadership and Marketing."

As the IAB ramps up its political operation to defend the interactive marketing industry from consumer-friendly privacy safeguards, it has created a new senior position. The SVP for Thought Leadership and Marketing is… “to help drive the growth of interactive advertising through enhanced communications with marketers, agencies, and others about the power of interactive media to reach and influence consumers.” In another words, a seasoned PR hand. David Doty is now in that position; he came from Booz Allen Hamilton where he was Director of Corporate Branding and Creative Services.”

But what IAB requires is “thought leadership” that recognizes that interactive marketing can’t run a-muck. Consumer protections are required, as well as a socially responsible approach to digital advertising in a global environment.

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Cable’s 70/70 Rule & the Public Interest: Programming diversity is what should matter

Our friends and colleagues have worked for years to ensure that the monopolistic-run cable television industry be required to operate in a more competitive and–dare I say–democratic manner. So Bravo! to Media Access Project, Consumers Union, Consumer Federation of America, and everyone else. But the focus of any FCC rules changes should be on how to ensure real programmatic diversity, including shows and channels owned and managed by women and people of color. If all we get is an a la carte system where one can merely pick and choose from the narrow content choices now offered us, then we will not be making real progress. How one should measure success of any cable TV regulatory change should be on what we see on the screen. That’s more important, in my opinion, than a focus on lowering cable rates (or offering new options for cable consumers to block programs and channels they find undesirable).

So as advocates and others consider policy changes, here’s what I suggest we consider. What rules are required so that there are new, unaffiliated, international, national, and local news channels available on cable systems? How can we foster independent programs and channels owned and operated by African-Americans, Hispanics/Latinos, and other groups? What needs to be done to ensure that five to seven years from now, there’s channels reflecting the rich cultural and artistic experience of the country? And, finally, what rules can be enacted that will aid these new media outlets to become sustainable, cross-platform (online, mobile, TV) services? That will require they have access to the full-functionality of cable–and not be placed in some digital backwater.

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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CDT’s Privacy “Report”—Full Disclosure is Missing

CDT has long been an ally of the various data collection companies it purports to oversee on behalf of consumers. It’s funded by a number of them. In fact Microsoft’s Bill Gates helped raise money for the group just last March.

The report released today fails to address the wide-ranging privacy threat coming from the major search engines and their advertising clients. It fails to acknowledge that it’s only because of policy-related pressure from privacy advocates—including the FTC complaint filed last November by my Center for Digital Democracy and US PIRG—that there have been modest corporate changes. [As well as the work of these two groups and EPIC in the case of Google’s proposed merger with Doubleclick, and the role of European Commission authorities]. CDT’s report also fails to acknowledge that it’s because of the unprecedented series of mergers in the data collection sector over the last few months, including Google, Microsoft, Yahoo!, AOL [$33.4 billion in the first half of 2007 alone, according to Ad Age. sub may be required.] —and the subsequent US and international regulatory scrutiny—that has created the “pressure” to bring about a few modest changes in data collection and retention practices. Without real advocates pressing—and regulators taking up their demands—we would have no changes at all (as minimal as they are). The marketplace’s approach isn’t protecting consumers.

Most troubling is that CDT fails to acknowledge that the widespread and evolving role of interactive advertising practices by these companies—including behavioral targeting, “rich” immersive media, and virtual reality formats—pose a serious threat to privacy and personal autonomy. It is not just the “bad” actors that require federal legislation, as CDT’s report suggests. If all Americans are to be protected online, the entire industry must be governed by federal policies designed to ensure privacy and consumer protection.

Here is a comment from my colleague Jennifer Harris: “When a group – with as close ties to the industry as CDT has – calls for government oversight, it is necessary to recognize just how much slack the online advertising and marketing industry has been given with our personal information. The main point is that consumers are at risk; updated federal consumer protection policies are essential to an environment that increasingly uses personal data as its commodity.”