Category: Microsoft

Microsoft’s Research into Behavioral Targeting & Profiling via its Beijing Research Lab

There’s a “Great Digital Game” going on, where companies such as Google, Facebook, Microsoft and leading ad agencies compete to expand the clout of online marketing around the globe.  As I told EU and other privacy regulators last Friday, the Obama Administration is being pressed by US online marketers to forge trade deals that will allow the leading companies to conduct business in the  Asia-Pacific and EU region without worrying about serious privacy and consumer protection rules.  I do think it’s ironic–and really misleading–to point to online marketing as a U.S. economic success story that requires special treatment.  The revenues generated by Google, Facebook and the others are principally from advertising.  Whether they are truly models of innovation that will bring the kind of sustainable long-term job and economic growth we need is questionable.

At the core of the “Great Digital Game”–where U.S. companies strive to dominate the global interactive ad marketplace–is data collection for user targeting.  Microsoft, which has a principal online ad research facility in Beijing, was recently seeking a Senior Data Mining Analyst.  Read this excerpt from the job description and think about privacy, civil liberties in China and other autocratic regimes, consumer protection and the ethical role of U.S. online ad companies:  “Microsoft Ad Platform China is building world-class engineering teams in Beijing, focusing on online Ads related systems and services such as behavior targeting and advertiser analytics. The team partner closely with the Redmond Ad Platform team, enabling the discovery and inference of user profiles, intent and interaction while respecting privacy and trust, with the ultimate goal of maximizing benefits for users, advertisers and publishers…Core Job Responsibilities: Conduct and manage applied research and modeling work in the areas of user segmentation, profiling, and targeting. Research and experiment on data mining algorithms for user segmentation and dynamic segment expansion. Utilize data mining technologies and use various data sources, some of which may include MSN/Windows Live web usage, search query, demographic, subscription, and 3rd party data, to gain insight into Internet user behavior and intent that will set the foundation for Microsoft targeting offerings and data services. Provide complete solutions to business problems using data mining techniques, statistics and data analysis. Serve as subject matter expert and drive thought leadership in the areas of user profiling, ad targeting, and personalization for Microsoft online services.”

Leading Health, Privacy, and Consumer Groups Call on FTC to Protect Adolescent Privacy online

For Immediate Release:  Feb. 18, 2011
Child, Health and Consumer Advocates Ask FTC for Teen Privacy Protections, including Do-Not-Track and No Behavioral Targeting

Today a Coalition of Child, Health and Consumer Advocates filed comments on the Federal Trade Commission’s proposed privacy framework asking for increased privacy protections for adolescents.   The coalition includes leading advocates such as the Center for Digital Democracy, the American Academy of Child and Adolescent Psychiatry, American Academy of Pediatrics, Children Now, and the Consumer Federation of America.

Privacy protections are needed as teens are increasingly subjected to privacy invasions online. Teens are using new media technologies for key social interactions and to explore their identities. This increased use of digital media subjects them to wholesale data collection and profiling of even their most intimate interactions with friends, family, and schools. Meanwhile, recent research in psychology and neuroscience reveals that teens are more prone to risky behavior when their anxieties and peer relations are exploited. Privacy protections are needed to keep the online world social and safe.

Companies should not use data to behaviorally profile teens. The framework should also provide enhanced choice for adolescents, including a Do Not Track feature. In implementing “privacy by design,” companies should consider the needs and vulnerabilities of teens.  They should address those vulnerabilities by, for example, minimizing the amount of data collected from teens.  Data that is collected should be retained for only short periods and should be afforded greater security.

“Teens live online today,” said Guilherme Roschke, attorney for CDD. “This time of development and maturation requires privacy protections. Teens cannot go it alone against the vast data collection and profiling infrastructure of new media technologies that not even adults can understand.”

“Because of their avid use of new media, adolescents are primary targets for digital marketing,” explained co-signer Kathryn C. Montgomery, Ph.D. “The unprecedented ability of digital technologies to track and profile individuals across the media landscape, and to engage in sophisticated forms of targeting, puts these young people at special risk of compromising their privacy.”

The full coalition includes:

Center for Digital Democracy, American Academy of Child and Adolescent Psychiatry, American Academy of Pediatrics, Berkeley Media Studies Group, a project of the Public Health Institute, Children Now, Consumer Federation of America, Consumer Watchdog, David VB Britt, Retired CEO, Sesame Workshop, Ellen Wartella, Kathryn Montgomery, National Policy & Legal Analysis Network to Prevent Childhood Obesity, a project of Public Health Law & Policy, The Praxis Project, Privacy Rights Clearinghouse, Public Good, Public Health Institute, Tamara R. Piety, and World Privacy Forum

Guilherme Roschke
Staff Attorney / Fellow
Institute for Public Representation
First Amendment and Media Center
Georgetown University Law Center
T:(202) 662-9543
F:(202) 662-9634
gcr22@law.georgetown.edu
http://www.law.georgetown.edu/clinics/ipr/
**********

Microsoft on Privacy Regs vs its business model: “to monetize human attention”

As we prepare for a vigorous debate on protecting consumers and citizens, it’s useful to reflect how online marketing companies view the process.  This excerpt from a Politico story last month notes, that:

Representatives from Google and Microsoft agreed it is the companies’ jobs to make sure consumers can trust them with personal information by giving them more control over how that data is shared. But regulation is a slippery slope. “Our business model is to monetize human attention,” said Marc Davis of Microsoft’s Online Services Division. “Regulation does potentially threaten the value of that.” Added Google’s Betsy Masiello: “Those business models also rely entirely on user trust.” They agreed there’s no legal clarity over who owns what data, and whether online information is owned by the person who entered it online or the company who runs the platform that stores it. “We’ve created this new business class without any clarity,” Davis said.

Statement of Jeff Chester on the Department of Commerce’s Internet Policy Task Force Privacy and E-Commerce: a Bill of Behavioral Targeting “Rights” for Online Marketers?

The Obama Administration asks some important questions about protecting the privacy of U.S. consumers.  But given the growth of online data collection that threatens our privacy, including when consumers are engaged in financial, health, and other personal transactions (including involving their families), this new report offers us a digital déjà vu.   The time for questions has long passed.

Instead of real laws protecting consumers, we are offered a vague “multi-stakeholder” process to help develop “enforceable codes of conduct.”  If the Commerce Department really placed the interests of consumers first, it would have been able to better articulate in the report how the current system threatens privacy.    They should have been able to clearly say what practices are right and wrong—such as the extensive system of online behavioral tracking that stealthily shadows consumers—whether on their personal computer or a mobile phone.   The paper should have firmly articulated what the safeguards should be for financial, health and other sensitive data.  The report should have rejected outright any role for self-regulation, given its failures in the online data collection marketplace.  While the report supports a FIPPS framework, these principles can be written in a way that ultimately endorses existing business practices for online data collection and targeting.

This illustrates one of the basic problems with the Administration’s approach to protecting consumer privacy online.  The Commerce Department is focused on promoting the interests of industry and business—not consumers.  It cannot play the role of an independent, honest broker; consequently it should not be empowered to create a new Privacy Policy Office.   Having the Commerce Department play a role in protecting privacy will enable the data collection foxes to run the consumer privacy henhouse.  We call on the Administration and Congress to address this issue.  A new Privacy Policy Office should be independent and operate under the Administrative Procedures Act—ensuring there are safeguards for meaningful public participation and transparency.

The Commerce paper’s real goal is to help U.S. Internet data collection companies operate in the EU, Asia/Pacific and other markets as “privacy-free” zones.  Under the cover of promoting “innovation” and trade, I fear the U.S. will craft a crazy-quilt code of conduct regimes that they will claim should pass muster in the EU (which has a more comprehensive framework to protect privacy).  The Obama Administration appears to be promoting a kind of “separate, but equal” framework, where it will argue that no matter how weak U.S. privacy rules are, other countries should accept them as the equivalent of a stronger approach.  The new paper should have acknowledged the U.S. has to play catch-up with the EU when it comes to protecting consumer privacy.

We have been promised meetings with the new White House subcommittee on privacy, where consumer and privacy groups will raise these and other concerns.

Microsoft’s “Advertising Exchange” for mobile and online: How will it be addressed by its own Do Not Track approach?

Microsoft has received praise for offering in Internet Explorer 9 a “tracking protection” capability that will enable users to import lists of third party sites that would be blocked.  That’s useful, but not enough.  Microsoft engages in extensive behavioral targeting (inc. for mobile) and other interactive ad strategies designed to capture data throughout its global digital advertising service (as does almost everyone else in the online ad business; that’s one reason why so-called “first-party” websites and services require consumer privacy rules). To beome a true leader in the privacy arena, Microsoft should do more.  Take its Microsoft Advertising Exchange, which sells instant access to users in real-time (such as what Google and also many others do).  We want to learn from Microsoft what privacy and consumer protection safeguards it’s developing for the Exchange, which “now supports approximately 8 billion impressions, or transactions, per month.”   Microsoft has been using and has just invested additional funding in AppNexus, which describes itself as “the industry’s most advanced real-time ad platform.”

ClickZ noted that: “In addition to using AppNexus to support real-time bidding on its sites, its ad network, and its exchange, Microsoft has begun supplementing regular ad buys on the Microsoft Media Network with exchange-traded inventory. That extra inventory carries a lot of potential reach, since AppNexus claims to support 4 billion transactions or impressions a day…Additionally, Microsoft has put the pieces in place to create a mobile ad exchange, called Microsoft Advertising Exchange for Mobile.. It will work by allowing Windows Phone 7 app developers to plug into demand from mobile ad networks like Millenial Media, InMobi and MobClix.”

Microsoft should tell the FTC, the EU, Congress and others how it plans to address the privacy issues raised by its Exchange expansion plans.  Last July, Microsoft noted that: “Microsoft is moving aggressively to provide our customers with access to our owned and operated inventory, as well as partner inventory, via our exchange. This move is in addition to our expansion of the Microsoft Media Network, which combined with the exchange, provides a holistic solution for our customers.  In recent weeks we have on-boarded US Windows Live inventory – including Hotmail and Messenger – into our exchange, providing a highly liquid pool of high quality inventory to demand partners on an RTB basis. We have integrated with each of the major DSP’s to ensure that our customers can work with the partner of their choice in accessing inventory.  Moving forward we will make available the rest of our US owned and operated inventory and partner supply. We’re excited about the efficiencies offered by an exchange-enabled ecosystem, and are committed to providing a foundation that enables innovation by allowing third parties to add value in a transparent, trustworthy ecosystem…over the next six months we will be integrating DSP’s into the Atlas Technology Partner Alliance. This will enable Atlas advertisers to seamlessly partner with the DSP of their choice to extend their buys onto RTB exchanges while enjoying all the benefits of campaign tracking and optimization…”  

We will be turning to the online ad exchange system and privacy issues, in the weeks ahead.

IAB Gets a new Chance to Play Constructive Role as Randall Rothenberg Goes to Time Inc.

The departure of Randall Rothenberg, the head of the Interactive Advertising Bureau, provides a critical opportunity for the IAB to revisit its position on protecting consumer online privacy (including Do Not Track).  Under Mr. Rothenberg, the IAB lobbied Congress to restrict the FTC’s ability to protect consumers, including on privacy.  With new leadership, the IAB could begin playing a more constructive role by working with consumer groups to build a consensus on federal privacy rules.  Instead of confrontation and denial, we hope the online ad lobby pursues serious engagement with privacy advocates.   The IAB has become just another inside the Beltway lobbying group–and has lost credibility among many policymakers.  A new IAB leader should be someone who can really help the mission of the industry by engaging in the kind of diplomacy and debate that supports the higher purposes of online advertising, digital publishing, and the public interest.
At Time, Mr. Rothenberg will now be in charge of its online ad network, which uses behavioral targeting and other interactive data techniques.  How Time responds to the growing call for better consumer privacy will be one of Mr. Rothenberg’s new challenges.

Consumers Union Supports our call for FTC action on digital pharma & health marketing

My CDD is very pleased to have received a copy of this letter sent to the FTC and FDA by Consumers Union.  It underscores how the issues around sensitive data and sensitive users are a critical part of consumer protection online.  We are also pleased about the positive coverage our complaint has received from the press, including the New York Times, CBS/Moneywatch, and other publications.

December 1, 2010

Chairman Jon Leibowitz

Federal Trade Commission

600 Pennsylvania Avenue NW

Washington, DC  20580

Dear Mr. Chairman:

Consumers Union, the independent, non-profit publisher of Consumer Reports, urges the Federal Trade Commission to accept the request of November 23, 2010 from several petitioners “to investigate unfair and deceptive advertising practices that consumers face as they seek health information and services online.”

The very detailed 144-page filing is by the Center for Digital Democracy, U.S. PIRG, Consumer Watchdog, and the World Privacy Forum. Among the companies named in the complaint are Google, Yahoo, Microsoft, AOL, WebMD, Quality Health, Everyday Health, and Health Central. The complaint explains how non-traditional pharmaceutical advertising on the internet and elsewhere uses a wide range of tools and disguises to convince consumers to use various drug products. These advertisements frequently hide the fact that they are funded by the drug manufacturer and they often fail to give any hint of side effects or possible adverse events from use of the drugs.

We have not independently examined each of the documents cited in the complaint or the context in which they were used. But the documents are overwhelmingly explicit in their description of how to take information consumers would consider very private (the decision to type in a health-related word or phrase on a website) and consciously and unconsciously manipulate those consumers into the use of specific prescription drug products.

The mass of documents in the complaint are shocking in their totality and their implication for privacy and the use of pharmaceuticals with potentially dangerous side effects or questionable efficacies.

We urge the Commission to begin an immediate investigation pursuant to the requests in the complaint. Thank you for your consideration.

Sincerely,

William Vaughan

Health Policy Analyst

Danah Boyd, COPPA, Online Marketing Targeting Youth, the role of Microsoft

Danah Boyd, like many other digital media researchers, fails to examine the business practices which shape and construct most of contemporary online media.  Ms. Boyd is quoted in last week’s Boston Globe about the Children’s Online Privacy Protection Act saying “[I]t’s well-intentioned, but this legislation has failed on every level.”  Ms. Boyd is incorrect.   A whole range of interactive ad practices and techniques commonly found on most digital sites has not been embraced by the under-13 online advertising market.  The goal of COPPA was to help structure the commercial online data collection and targeting practices aimed at young people–and it’s done so (just see what kind of data collection and targeting practices occur the minute anyone reaches 13.  From that age onwards, everyone is fair game for a wide range of very disturbing practices, most of which collect and use our information). Ms. Boyd and the Globe article are also incorrect claiming that “Congress is considering renewing” COPPA.   The FTC is currently conducting a periodic review of COPPA’s rules and the Congress has held hearings on the law.  But Congress doesn’t have to “renew” COPPA.

Finally, a challenge to Ms. Boyd.  She is working for Microsoft–which is targeting youth across the globe via its advertising division.  Microsoft Advertising is collecting data and targeting teens for junk food and other products.  See Microsoft’s “How to Target Young People Online” and other materials, for example.  Ms. Boyd needs to analyze what her employer–and other financial backers from the online ad industry supporting Berkman–are doing regarding youth–and hold them and herself accountable.

The new “Digital Advertising Alliance” self-reg plan. See if it tells consumers what its sponsor ad groups really say to each other. That they track and target your “digital footprint”

On Monday, the new self-regulation magical “icon” that is designed to make the online ad industry’s privacy problems disappear will be unveiled.  A new group called the “Digital Advertising Alliance” will unveil the icon-based plan–all timed to help head-off the kinds of protections and safeguards consumers require.  The current financial crisis affecting tens of millions of Americans require that government and big business groups do more than pay digital lip service to consumer protection.

As a kind of litmus test for the new self-regulation effort, see if the icon and the information connected to it really informs you about how data on you is collected and used for profiling, tracking and targeting. For example, last week, the Interactive Advertising Association (IAB), one of the key backers of the new Alliance, released a guide to targeting consumers at the local level.  Here’s excerpts of what they say.  See if that little icon is being honest when you click it.  Of course, we really require rules that eliminate the kind and amount of data that can be collected on you and you family and friends in the first place–as well as honest disclosure on the process.  Note as well that all that data on you is expensive–and others are cashing in on information that belongs to you!  From the new “Targeting Local Markets” guide:

Explicit profile data Targeting. definition–
Explicit data is “registration quality data” collected either online or offline. For online registration data, the user has certain attributes in his or her registration profile at a particular site or service, and that data is associated with the user’s Web cookie or some sort of audience database when the user next logs in. Offline registration data includes the sorts of data held in the massive offline direct response industry databases built up over the last several decades. These are then matched to a user online when that user logs in somewhere that is a partner of the data company. The site at which the user logs in, usually an online mail or similar site, sends the name/email combination to the data company, which then makes the match and sends back data…pricing–In general, first party data commands a far more variable premium than third party data…Third party data is usually available in much larger quantities, and yet there is often a fee of anywhere between $0.50 to $2.00 or more paid to the data provider by the ad seller – thus increasing the cost of goods sold (COGS) on the ad, and therefore increasing the price…

Behavioral Targeting (Implicit profile data Targeting)-definition-
Behavioral Targeting is the ability to serve online advertising based on profiles that are inferred from an individual user’s technical footprint and viewing behavior…As the medium has grown from a “browsing” experience to interactional so have the levels of information gathered. Newer forms of information include the data collected about influences, social preferences through social networks and an individual user’s content created online…The data is often gathered in real-time and can be used for real-time decision-making so that relevant advertising can be delivered dynamically to an individual user during their online session…Behaviorally targeted advertising commands a higher price because of targeted placement versus general run-of-site (ROS) advertising…Behavioral Targeting can be highly accurate when the user is leaving a digital footprint of their activities as they move through the Web.

Google & Microsoft Tout their Mobile Targeting Clout, inc. Behavioral, Location, Gender, etc.

My CDD and USPIRG asked the FTC in January 2009 to investigate mobile marketing and its threat to both privacy and consumer protection issues (Ringleader Digital, now the subject of lawsuits and stories in the WSJ and NYT, was included in the complaint, btw).  Online mobile marketers, including Microsoft and Google, illustrate how regulators in the U.S. and abroad should require safeguards to protect the public from unfair and deceptive practices–including those that involve their privacy.  In Ad Age, both Google and Microsoft loudly proclaim what their mobile marketing services can do for brands, ads and marketers.  Here are some choice excerpts:

Microsoft:  “Microsoft Advertising’s industry-leading mobile display and search advertising solutions engage more than 43 million on-the-go U.S. consumers each month—regardless of a user’s mobile phone or wireless carrier. Its innovative ad placements and ad formats include display, rich media, search, video and custom in-app ad units…

Advanced Targeting Options
  • Profile targeting: age, gender, household income, location, time of day
  • Behavioral targeting: more than 120 custom segments (e.g., “movie watchers” and “business travelers”)
  • Device: make and model
  • Wireless carriers: on-deck inventory
  • Keyword targeting: exact or broad match…Complete mobile ad solutions for automotive, CPG, entertainment, financial services, retail, technology, telecommunications, travel and other sectors…
  • More than 43 million, or 55 percent of active mobile web users in U.S.
  • More than 80 million active mobile users globally in 32 countries.”

Google: “Today’s consumers are on the move. More than ever before, audiences are searching and browsing the web on their mobile devices. How do advertisers connect with the on-the-go consumer…As customers go mobile, advertisers need smart mobile advertising strategies. With Google, they can easily target and tailor messages according to location and automatically show their customers relevant local business information or phone numbers to enable them to take immediate action. Once a campaign is up and running, marketers can measure their results via detailed reports. Additionally, integrated mobile reporting in Google Analytics allows them to track and optimize conversion, e-commerce and engagement metrics on mobile devices. They can take advantage of Google’s mobile-specific ad formats. Click-to-call text ads, animated mobile banner ads, click-to-download ads and other display ad formats are examples of how Google is innovating for the small screen.  Google closed its acquisition of AdMob, one of the world’s leading mobile advertising networks, in May. AdMob’s innovative rich media ad units—including full-screen expandable, animated banner and interactive video—create opportunities for advertisers to engage with a relevant audience on their mobile devices. Now the Google and AdMob teams are working to create new ways to deliver engaging and innovative advertising experiences that will help marketers drive their businesses forward…

CASE STUDY

CHALLENGE: Esurance, a direct-to-consumer personal car insurance company, wanted to ensure that customers could do business with it on their own terms and at their own convenience… To make the connection between mobile users and Esurance agents, Esurance used Google mobile ads with integrated click-to-call functionality. The CTC ads gave mobile users the option of clicking through to Esurance’s mobile-optimized landing page or initiating a phone call with a licensed insurance agent…Results…

  • Boosted conversion rates: Click-to-call mobile ads drove a 30 percent to 35 percent higher response.”

PS:  Attention Music Lovers.  In the same Ad Age piece, the online music service Pandora exclaims that it can provide:“Through powerful hypertargeting, reach the right person, at the right time, without waste. Target based on age, day, gender, location, mobile platform, time and type of music…Pandora offers a broad array of formats and rich media functions to create an immersive mobile experience, including:

  • Tap to video
  • Drag and drop
  • Tap to app
  • Tap to call
  • Tap to e-mail
  • Tap to expand
  • Tap to find a location
  • Tap to iTunes
  • Tap to mobile webpage
  • Standard banners”