Category: interactive marketing

Microsoft’s Mobile Marketing Data Ploy

Mobile marketing is the emerging threat to our privacy, with a range of behavioral targeting and other data collection techniques. While there are privacy problems throughout the field, we think Microsoft’s recent purchase of European-based ScreenTonic is a good example of what to expect. Europe is a prime mobile marketing testing ground. Here’s an excerpt from an interview conducted by Advertising Age with Joe Doran, general manager of Microsoft Digital Advertising Solutions:

“Ad Age: What kind of targeting data will Microsoft and ScreenTonic be able to offer marketers?

Mr. Doran: ScreenTonic does basic targeting based on handset by carrier and by the site [where the consumer is] actually at today. Based on information we can comb from the carrier and the operator, we could get enhanced data for advertiser, such as gender or geo-location. It’s probably not as robust as we would want it to be, but it’s as good as what everybody is doing in geo-based targeting on mobile advertising today….

Ad Age: How will mobile be sold and measured?
Mr. Doran: For display advertising — which is where ScreenTonic really fits — that will primarily be placed and sold on CPM [cost per thousand viewer] basis. There will be performance-based media just as there is all over digital marketing today…High content, highly contextually targeted, high value placements will drive high value CPMs.”

From: Microsoft Explains Mobile Ad Network Purchase.” Alice Z. Cuneo and Abbey Klaassen. Ad Age. May 4, 2007 (sub. required).

Regulators Need to Examine Yahoo! Takeover of Right Media

Just for the record. Yahoo!s acquisition for the rest of Right Media for $680 million is another reason why the Federal Trade Commission–and the Congress–must get a better understanding of the digital ad market. So-called “open exchanges” provide market power for companies such as Yahoo! and Google. The future of the interactive ad market will help determine diversity of content online (eventually on all platforms). The deal is part of the growing consolidation in the interactive ad market, something we formally complained to the FTC about in our filing last November (as part of CDD/PIRG privacy concerns). These exchanges ultimately are trading access to us, via our data. This acquisition–along with the penultimate merger between Google and Doubleclick–must undergo serious scrutiny from policymakers.

Google Gobbling Airwaves to Expand Mobile Data Reach?

excerpt and my italics: “Google’s lobbying activities and its March move to join the Coalition for 4G in America (a consortium that joins Skype, Yahoo, satellite TV provider DirecTV, EchoStar, Intel and wireless services provider Access Spectrum) are bearing fruit. The coalition – which is widely considered to be dominated by Google – has petitioned the FCC asking for policy changes in the airwaves auction. If it has its way the auction will allow packaged bidding, a policy change that would let bidders acquire nationwide licenses…If Google does indeed go wireless, then it will control two key touch points to mobile content and apps: the network and the mobile search engine. It also will be in a prime position to dictate the mobile advertising ecosystem from end to end and not have to bother with pesky mobile operators and third-party players that demand their share of the ad revenue pie. The jury is on whether this is the plan. But if anyone can pull this off, Google can.”

from paidcontent.org

Leading Ad Exec on Googleclick: Deal Should Raise “Privacy Concerns”

Omnicom Group is a global advertising/marketing powerhouse, controlling such well known “brands” as BBDO, DDB and TBWA. They represent PepsiCo, P&G, Apple, Fedex, McDonald’s, etc. etc. They know the business. Here’s what Omnicom’s president John D. Wren said yesterday about Google’s Doubleclick deal, in a story written by Reuters (my bold and italics):
“What it’s going to raise – and this will be a very good conversation in the marketplace – are privacy concerns. The technology that exists far exceeds the laws and thinking of the people that are going to be impacted by it,” he told investors on a conference call. Wren welcomed what he said would be a healthy debate that will ultimately clarify privacy laws when it comes to consumer information on the Internet.

“I’m encouraged by the deal, because I’m most encouraged by the discussion that the deal is going to cause the marketplace to have. Any definition will be positive for us.”

In other words, even the ad industry recognizes that the powerful and intrusive tools they have developed require safeguards, rules, policies, limits. For both privacy and the interactive ad market.

Doubleclick’s Data “Boomerang”–Behavioral Targeting Power

excerpt from “Boomerang for Advertisers and Agencies”–“You are in a continual search for that desirable, yet elusive audience: the interested consumer. Boomerang, DoubleClick’s one-to-one targeting solution, empowers you to identify and re-target across your media buy customized segments of prospects and customers based on actions they’ve taken on your site and other marketing messages they’ve received. The result is a dramatic increase in customer acquisition, conversion, and retention metrics.

“Leverage the Power of Behavioral Targeting
Behavioral targeting is the most effective form of targeting available. It allows you to re-target to the most desirable audience of all: browsers who have already shown an interest in your product or service. With Boomerang, you can now engage that audience in a dialogue, providing timely and relevant messages triggered by their online actions. Boomerang delivers true behavior-driven advertising, so you can reach pre-qualified prospects and customers quickly and easily…

Use Boomerang to Get Better Results
Smart marketers have used Boomerang to:
• Re-target customers who have already browsed their site to bring them back
• Re-target site visitors that have “dropped off” of the purchase process with a related message to drive them back to the site
• Upsell and cross-sell customers that have already purchased core products
• Reach customers who have not visited or purchased recently to reactivate them
• Show specific advertising messages based on expressed interests, such as delivering an ad for a new car model to a browser that downloaded a brochure on last year’s model
• Test different offers and price points to determine the most effective for converting browsers into buyers”

product overview available via here:[pdf to download]

From a Doubleclick job announcement for “senior statistician” (excerpt): “DoubleClick is an application service provider, handling a staggering 12 billion transactions per day, and managing up to 160,000 hits per second on its global network. Our suite of products is driven by the DoubleClick Technology Group (DTG), comprised of over 300 IT professionals, located in New York, Colorado, Chicago, San Francisco and Europe.”

and an excerpt from: “Schmidt Defends DoubleClick Buy, Net Neutrality.” WebProNews
Schmidt said DoubleClick’s ad technology was what made the company attractive. “Advertising is really about relevance,” he [Google’s Eric Schmidt] said. It’s really about efficiency; it’s really about measurability. There’s not been a lot of technology applied to advertising over the past 10 or 20 years except for a few companies, DoubleClick being one of them.”

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U.S. Search Market is Consolidated. Google to Have 75% Share

eMarketer’s release on its new report that: “There are two giants in the space, and they are getting bigger! Saying that search engine marketing is a highly concentrated industry is an understatement… [my bold]


“Google and Yahoo!’s share of U.S. Paid Search Advertising Spending”
2007 (estimates)
Google: 75.6%
Yahoo!: 16.3%
Total Market Share of the two: 91.9%


“… according to comScore, US Internet users performed 75.8% of their January 2007 searches on Google or Yahoo!, and Nielsen//NetRatings put the combined total at 76.4%… “In fact, over 90% of US paid search ad spending will go to the two search giants in 2007…”
“US spending on search advertising will rise by more than $3.2 billion from 2006 to 2008 alone… Paid search is currently the key driver of US online advertising, and spending on paid search in 2008 will exceed the $9.6 billion that was spent on all online advertising in 2004.”

from: “The Unstoppable Surge of Search Advertising.” April 20, 2007

FTC Filing today on GoogleClick First in a Series of Steps

Today, the Center for Digital Democracy joins with the Electronic Privacy Information Center (EPIC) and the U.S. Public Interest Research Group (PIRG) in a complaint to the U.S. Federal Trade Commission about new threats to privacy arising from the proposed takeover of Doubleclick by Google. A copy of the filing can be be found here.

It is critical that both U.S. and E.U. antitrust authorities investigate the impact of this deal on the growing consolidated online advertising marketplace. My group and allies are working on the competition and market structure issues, in addition to concerns about privacy (in the case of the online advertising market, of course, issues related to personal privacy are almost totally intertwined).

The merger between Google and Doubleclick, along with other interactive ad industry consolidation, has greater implications beyond concerns over advertising competition and privacy. Whomever controls the online ad market will determine the range and diversity of content creation and distribution online (through their ability to invest in content sources and services). Antitrust regulators must intervene to protect civil society, including ensuring the funding and availability of news and civic discourse for the digital realm.

Faster Than You Can Say Doubleclick: Google’s YouTube to Collect More Data

From Advertising Age:

excerpt: “Coming this fall from YouTube: richer demographic information.

“We’ll never have had that much data about that much content,” said Suzie Reider, chief marketing officer at YouTube. She was speaking to a group of advertising research executives in New York at the Advertising Research Foundation’s Rethink conference.

“By Q3 we’ll have a tremendous amount of metrics and data around every video,” she said. “There’s lots you can glean from looking at who’s looking at what. It’s a real-time focus group that happens all day, every day.”

“At ARF: YouTube to Get Richer Demo Data.” Abbey Klaassen. Advertising Age. April 17, 2007 [sub required]

Industry Insider Describes

“DoubleClick serves more display ads for more advertisers and more agencies and more publishers than any other company in the world. With this deal, Google now controls more display advertising than any other company, which nicely complements their other businesses where they control more search and contextual advertising than any other company in the world… DoubleClick currently processes more online ad campaigns and more ad transactions than any other company in the world, by far, particularly at the high end of the market. This data is a treasure trove. If Google wanted to, it could know exactly how much money its AdSense distribution partners make from other ad distributors, be they Yahoo! or Advertising.com or MSN. This is very powerful data.

Even if they don’t ever access the data itself, the metadata (the data about the data) is incredibly valuable. It is as if the world’s biggest stock broker just bought the world largest stock exchange. Plus, DoubleClick probably sets more cookies on more consumer browsers than any other company in the world as well.

Just the analysis of this data could yield for Google the keys to dramatically improving the targeting of all of their ads.”

From: “Google/DoubleClick: It’s About Display, Data And Defense.” Curt Viebranz, Online Media Daily. April 16, 2007.

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